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A.E. CHICOINE FARM EQUIPMENT LTD. Storthoaks, SK 306.449.2255 FUTURE AG INC. Coronation, AB 403.578.3747 Olds, AB 403.556.6711 Red Deer County, AB 403.343.6101 Stettler, AB 403.742.3740 Stony Plain, AB 780.963.7411 HERGOTT FARM EQUIPMENT LTD. Humboldt, SK 306.682.2592 HI LINE FARM EQUIPMENT LTD. Wetaskiwin, AB 780.352.9244 LEO’S SALES & SERVICE LTD. Winnipeg, MB 204.694.4978 REDHEAD EQUIPMENT Estevan, SK 306.634.4788 Lloydminster, SK 306.825.3434 Melfort, SK 306.752.2273 North Battleford, SK 306.445.8128 Prince Albert, SK 306.763.6454 Saskatoon, SK 306.934.3555 Swift Current, SK 306.773.2951 ROCKY MOUNTAIN EQUIPMENT, CANADA Balzac, AB 403.513.7000 Boissevain, MB 204.534.2463 Brandon, MB 204.725.2273 Camrose, AB 780.672.9136 Dauphin, MB 204.638.5558 Drumheller, AB 403.823.2626 Elie, MB 204.353.2392 Falher, AB 780.837.4691 Grand Prairie, AB 780.882.7637 Grimshaw, AB 780.332.4691 High River, AB 403.652.7944 Killarney, MB 204.523.4644 To learn more, contact your local Case IH dealer or visit www.caseih.com MADE FOR SNOW DAYS Case IH Maxxum and Vestrum series tractors MAXXUM SERIES TRACTORS 95–125 PTO HP* Maxxum® series tractors deliver the year-round versatility and productivity you need, with the operator comfort you want. * Visit CaseIH.com for rated engine speed specifications. All rights reserved. Case IH and CNH Industrial Licensed Product are trademarks registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. Any trademarks referred to herein, in association with goods and/or services of companies other than CNH Industrial America LLC, are the property of those respective companies.
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4 Our Advertisers Appreciate Your Business Better Farming | January 2024 Cover: Morgan Duggan photo, Emily Croft photo LETTER FROM THE EDITOR HERBICIDE IN SOIL; MARGINAL AREAS Not many days pass when we don’t hear from our farmer readers. We get “well done” emails. And we get “you could have done better” messages when we could have done better – after a technical error or even a spelling or syntactic mistake. We get story ideas from our readers, and thank goodness, as these leads often become some of our most popular articles. We get farming photos sent in, and lots of letters to the editor. We even get advertising clients reaching out because we helped them grow their business. So in a word – thanks. We appreciate your calls and messages. Please keep them coming. The 2024 Herbicide Carryover Risk maps are now online at Saskatchewan Agriculture. As explained on Saskatchewan.ca, “in-season rainfall after herbicide application is the most important factor needed for the normal breakdown of herbicides in the soil. Less than normal rainfall can result in residual herbicides remaining in the soil at higher levels than expected, increasing the risk of herbicide injury to the more sensitive of the crops registered for planting in following year(s).” Producers should contact their local crops extension specialist or regional office with questions. Ducks Unlimited Canada recently partnered with Farm Credit Canada’s Sustainability Incentive Program. This new incentive program could see FCC customers in Alberta, Saskatchewan or Manitoba who are participating in DUC’s Marginal Areas Program receive an incentive payment based on a percentage of their total owing with FCC capped at a maximum payment of $2,000 or $50/acre of enrolled acres. The Marginal Areas Program targets areas that are unproductive due to poor drainage, soil conditions, periodic flooding, inaccessibility, or salinity. DUC offers an incentive upfront for participating in the Marginal Areas Program through a 10year agreement to assist producers with the cost of establishing perennials and alleviate the financial burden associated with land management. Paul Nolan Farm equipment has come a long way! This 1945 Field Marshall tractor sold at a recent auction could be started with a shotgun shell. Read more about antiques and where to find them on Pg. 24. Leslie Stewart photo 1-888-248-4893 PUBLISHER & EDITORIAL DIRECTOR PAUL NOLAN ext 202 Paul.Nolan@Farms.com ASSISTANT TO THE PUBLISHER & EDITORIAL DIRECTOR LESLIE STEWART ext 265 Leslie.Stewart@Farms.com AGRICULTURAL JOURNALIST EMILY CROFT PRAIRIE CONTRIBUTORS STACY BERRY MACKENZIE HLADUN Parkland County, Alta. Moose Jaw, Sask. RICHARD KAMCHEN RON SETTLER Edmonton, Alta. Lucky Lake, Sask. NATIONAL CONTRIBUTORS MOE AGOSTINO ABHINESH GOPAL DIEGO FLAMMINI APRIL WENDLING ADVERTISING TEAM GLENN RUEGG JEFF McKEE JENNY LONGSTREET SCOTT FARHOOD SAMANTHA RENAUD JOAN SPIEGELBERG ANDREW BAWDEN DESIGN & PRODUCTION TEAM TANYA MYERS GREG MARLOW SHAUN CLARK ANDREA WILLIAMS www.BetterFarming.com Follow us on Twitter @PrairieFarming Better Farming Magazine, Prairie Edition is mailed to producers in Alberta, Manitoba and Saskatchewan. Next issue: February 2024. 1-888-248-4893 ext 281 Subscriptions@BetterFarming.com ISSN 2563-9803 (Printed) Copyright ©2024 by AgMedia Inc. All rights reserved. Reproduction of any content without written permission of the publisher is forbidden. Acceptance of advertising does not constitute endorsement of the advertiser, its products or services, nor do Better Farming, AgMedia or Farms.com endorse any advertiser claims. The publisher shall have no liability for the omission of any scheduled advertising. POSTMASTER: Send address changes to 90 Woodlawn Road West, Guelph, ON N1H 1B2 Mail agreement #0042518524 We acknowledge the financial support of the Government of Canada.
Find your local dealer at meridianmfg.com www.meridianmfg.com | (800) 830-2467 © 2023 Meridian Manufacturing Inc. Registered Trademarks used under License. (12/2023) Easy clean-out Excellent Resale Value Long-Lasting Powder Coat Finish Completely self-cleaning with no bolts or ribs, Meridian Multi-Purpose hopper bins are the safest and most efficient on-farm grain and fertilizer storage solution available. With proven quality and durability, Meridian bins help you farm efficiently by saving you time and energy, year after year. Meridian’s powder coat exterior and interior lasts much longer than wet paint solutions, especially when storing corrosive materials such as fertilizer. These bins are easily relocated and hold their value, making them the perfect investment in your farm. Multi-Purpose SmoothWall Bins MAXIMIZE YOUR FARM’S STORAGE Find your local dealer at meridianmfg.com ® Multi-Purpose SmoothWall Bins Completely self-cleaning with no bolts or ribs, Meridian Multi-Purpose hopper bins are the safest and most efficient on-farm grain and fertilizer storage solution available. With proven quality and durability, Meridian bins help you farm efficiently by saving you time and energy, year after year. Meridian’s powder coat exterior and interior lasts much longer than wet paint solutions, especially when storing corrosive materials such as fertilizer. These bins are easily relocated and hold their value, making them the perfect investment in your farm. Find your local dealer at meridianmfg.com | (800) 830-2467 ® © 2023 Meridian Manufacturing Inc. Registered Trademarks used under License. (12/2023)
Always read and follow label directions. BlackHawk®, CONQUER®, GoldWing® and ThunderHawk® are registered trademarks of Nufarm Agriculture Inc. Duplosan™ is a trademark of Nufarm Agriculture Inc.
ADVANCING THE UNSTOPPABLE SUPERPOWER OF PRE-SEED.™ 1.800.868.5444 | nufarm.ca | @NufarmCA WEEDS EVOLVE, SO DO WE. Start clean with the advancing power of Nufarm’s pre-seed burndown portfolio in canola, cereals and pulses. Our evolving portfolio keeps the farmer in mind to deliver performance, convenience and resistance management in a single package – it’s pre-seed power without the complexity.
8 The Business of Prairie Agriculture Better Farming | January 2024 C4 CROPS & OZONE POLLUTION ‘It is difficult to compare the response of C3 & C4 crops to ozone in the field.’ By April Wendling Ozone (O3) in the troposphere negatively impacts crop growth and development causing significant decreases in crop yield worldwide. This airborne pollutant does not come directly from smokestacks or vehicles, but instead is formed when other pollutants, mainly nitrogen oxides and volatile organic compounds, react in the presence of sunlight. In an increasingly polluted atmosphere, understanding what plants are tolerant of O3 is critical to improving crop productivity and resilience. In a collaboration between the feedstock production and sustainability themes at the Center for Advanced Bioenergy and Bioproducts Innovation (CABBI), researchers have studied the effects of elevated O3 on five C3 crops (soybean, wheat, chickpea, rice, snap bean) and four C4 crops (sorghum, maize, Miscanthus × giganteus, switchgrass). Their findings, published in the Proceedings of the National Academy of Sciences (PNAS), indicate that C4 crops are much more tolerant of high O3 concentrations than C3 crops. “Understanding the tolerance of C4 bioenergy crops to air pollutants will help us deploy them strategically across landscapes around the world,” says Lisa Ainsworth, research leader in the Global Change and Photosynthesis Research Unit in the United States Department of Agriculture’s Agricultural Research Service (USDA-ARS) agency, and adjunct professor of plant biology at the University of Illinois. Both C3 and C4 crops are major sources of food, bioenergy and ethanol production worldwide. The difference between C3 and C4 plants lies in the carbon-fixation pathway they use during photosynthesis: C3 plants convert CO2 and sunlight into a three-carbon molecule, whereas the first photosynthesis product of C4 plants is a four-carbon molecule. Additionally, the C4 photosynthesis pathway starts in mesophyll cells that comprise the surface of the leaf, and then moves into bundle sheath cells that are deeper in the plant. This spatial separation is not present in the C3 photosynthesis pathway. Scientists have historically assumed that C4 plants are less sensitive to O3 pollution than C3 plants, but that assumption had not been thoroughly researched until this study. “Variation in size and growing season length means that it is difficult to do side-by-side comparisons of the response of C3 and C4 crops to ozone in the field” says Shuai Li, primary author on the paper and a postdoc in CABBI. “This limits accurate comparisons of the O3 sensitivity of C3 and C4 crops.” By synthesizing available literature Research C4 Crops like sorghum are more tolerant of high O3 concentrations. mailsonpignata - stock.adobe.com … the top producers across the Prairies for just PENNIES per adult reader! Paul.Nolan@Farms.com ADVERTISERS REACH ...
9 The Business of Prairie Agriculture Better Farming | January 2024 and unpublished data from crops grown with increased O3 pollution in open-air field experiments over the past 20 years, authors performed a comprehensive analysis of the impact of O3 on crop physiology and production in five C3 and four C4 crops. “We focused on field experiments and quantified crop responses to a specific increase in O3 pollution. This new method quantitatively showed that C3 crops are more sensitive to elevated ozone than C4 crops,” Li says. The reasoning behind such a conclusion could have something to do with the differences in leaf anatomical features, stomatal conductance and/or metabolic rates between the C3 and C4 crops. In C3 plants, reactive oxygen species from O3 degradation can damage the mesophyll cells where photosynthesis occurs. In C4 plants, however, the spatial separation of the C4 photosynthesis pathway helps prevent O3 from infiltrating the bundle sheath cells where sugars are made. Also, C4 crops generally have lower stomatal conductance than C3 crops, potentially resulting in less O3 uptake in C4 crops. These factors likely account for C4 plants’ superior tolerance of O3. “This study enhances our understanding of the mechanisms of crops response to elevated O3 and highlights practical relevance for crop management and O3 tolerance improvement,” Li says. Ozone pollution is increasing in many parts of the world. This study quantitatively showed that O3-induced reductions in plant function and productivity are more severe in C3 crops than in C4 crops, likely because O3 interacts differently with the C3 and C4 photosynthesis pathways. Based on this finding, agricultural lands in polluted environments can be managed to have improved overall performance. C4 crops, particularly bioenergy feedstocks, can maintain productivity in regions with high O3. BF April Wendling is a CABBI communications specialist at the University of Illinois Urbana-Champaign. Wild buckwheat is an annual weed that produces about 1,200 seeds per plant and can cause crop lodging, making swathing and combining difficult, if not controlled. What to look for • Seedlings: Look for linear cotyledons positioned at 120 degrees from each other. True leaves are arrow-shaped with pointy tips and pointed basal lobes. Leaves are alternately arranged and petioled with entire margins*. • Mature Plants: Look for 1-3 ft. long, slightly angular stems that trail on the ground or twine on other plants. Leaves are heart-shaped, pointed, long, alternate and smooth. The flowers are greenish-white, small and borne in the leaf axils or at the tip of branches. Five sepals enclose a single seed**. Count the cost • Yield loss in wheat: 12% loss can occur with five plants/m2 and 22% loss with 30 plants/m2**. • Yield loss in flax: Up to 10-20% loss has been reported with 5-15 plants/m2. Yield loss can vary depending on when weeds are present (before or after crop emergence)**. When to scout • Take several weed counts across the field. Check low spots for patches. Scout fields early because it is most sensitive to herbicides in its early stages**. How to control • The earlier you can apply herbicides, the better control you’ll have. Consider applying a tank-mix partner with your glyphosate pre-seed burn-off such as Intruvix™ II herbicide. WILD BUCKWHEAT *Weeds of the Prairies: Alberta Agriculture **Government of Manitoba Crop and Agronomy Information site. https://www.gov.mb.ca/agriculture/crops/weeds/wild-buckwheat.html Always read and follow label instructions. Member of CropLife Canada. FMC, the FMC logo and Intruvix are trademarks of FMC Corporation or an affiliate. ©2024 FMC Corporation. All rights reserved. 8190 - 12/23 8190 Weed of the Month Series_Wild Buckwheat.indd20123-12-06 9:26 AM 2023-12-06 9:26 AM Research Ozone has a significant impact on crop yield. Tracy Miller photo
10 Story Idea? Email Paul.Nolan@Farms.com Better Farming | January 2024 Beyond the Barn OLDS COLLEGE OFFERS INDOOR AG CERTIFICATE A postsecondary school in Alberta has launched a new program for ag students. Beginning in the fall of 2024, Olds College will offer a four-month Indoor Agriculture Certificate program to meet industry demands for skilled people to work in the controlled environment agriculture (CEA) sector. The first cohort will consist of 30 students. “Our students will acquire essential skills in plant production techniques, modern technologies, and business practices that are crucial for success in this field,” Debbie Thompson, vice-president of Academic for Olds College, said in a recent statement. Examples of CEA include greenhouses, vertical farming and hydroponics. Students will be required to complete five individual courses to earn their certificate. In the Principles of Crop Production in Controlled Environments course, for example, “students explore the relationship between plants, their physiology, and growing requirements within controlled environments,” according to the course description. Other courses include Business and Economics of Controlled Environment Agriculture, Fundamentals of Controlled Environment Agriculture, Controlled Environment Agriculture Systems & Components, and Operating Controlled Environment Systems. A field placement of at least 200 hours is optional. The number of greenhouse vegetable operations in Canada is on the rise. In 2021, Canada had 892 greenhouse vegetable operations. And the harvested area increased to more than 19 million square metres. Applications for the certificate program opened in October 2023 for a September 2024 start date. BF - Diego Flammini A recent release from Statistics Canada detailed farm cash receipts from the first three quarters of 2023. From January to September, Canadian farms totalled $72.5 billion in farm cash receipts, which is a 7.9 per cent increase from the same period in 2022. Crop receipts increased $4.5 billion from the first three quarters of 2022 to the first three quarters of 2023 to a total of $41.4 billion. StatCan attributes this to a gain in markets, although prices were down in the 2023 period. The largest increases in crop receipts were observed in canola, wheat, and durum wheat, contributing to more than 75 per cent of the growth in this category. These crops had higher marketings in 2023 following the drought in Western Canada in 2021 and a return to normal production levels in 2022. Growth in crop receipts occurred despite price drops of 15.5 per cent for canola, 8.9 per cent for wheat and 17.9 per cent for durum wheat. Livestock receipts increased $2.2 billion in this period, to a total of $27.2 billion, due to an increase in prices in the 2023 period. This was an 8.9 per cent increase relative to the 2022 period. Increased cattle receipts contributed to more than 80 per cent of the growth in livestock receipts, climbing by $1.8 billion to a total of $9.8 billion. This was related to strong demand for cattle in Canadian and U.S. markets, as well as rising input costs. Supply-managed receipts increased by 7.2 per cent to a total of $11.2 billion. All provinces reported increases in farm cash reciepts throughout the first three quarters of 2023. Saskatchewan led these increases, rising $2.3 billion to a total of $16.5 billion. This growth accounts for 40 per cent of the national growth. BF FARM RECEIPTS STILL UP AFTER Q3 jimfeng/E+ photo
Clean is good “Burn in heck, weeds. Burn in heck!” The speed and performance of new Intruvix™ II herbicide is so darn good, folks can hardly contain their excitement. By applying it with glyphosate before planting cereals, they’re saying goodbye and good riddance to narrow-leaved hawk’s-beard, volunteer canola, kochia and many other problem weeds. Enjoy cleaner fields, faster, while protecting your future glyphosate use. Cheese and crackers, how easy can you get? REWARD OFFERED. GET CASH BACK WHEN YOU BUY INTRUVIX™II HERBICIDE Always read and follow label instructions. Member of CropLife Canada. FMC, the FMC logo, and Intruvix are trademarks of FMC Corporation or an affiliate. © 2023 FMC Corporation. All rights reserved. 8350 - 11/23 NEW
12 Our Advertisers Appreciate Your Business Better Farming | January 2024 Beyond the Barn CAHRC REPORTS LOSSES FROM LABOUR SHORTAGE The Canadian Agricultural Human Resource Council (CAHRC) recently shared research demonstrating large losses to the industry due to the ongoing labour shortage. The report, released in November, estimates that in 2022 on-farm ag businesses lost up to $3.5 billion in sales because of an insufficient number of workers. It was also found that agriculture has an above average job vacancy rate at 7.4 per cent, and 40 per cent of employers stated that they couldn’t find enough workers. This report was based on an analysis of the Canadian agriculture sector’s labour market trends and challenges. In 2022, agriculture had a workforce of some 420,000 people, including farm businesses, support services, and wholesalers. At this time, 17 per cent of workers were foreign workers, a 30 per cent increase from 2017. “We cannot solve the issues facing our sector if we do not know exactly what they are and where they exist. That is why this new data is so important,” said Jennifer Wright, CAHRC’s executive director, in a recent release. “The information tells us there is an urgent need to boost labour supply and empower domestic and foreign workers to secure the industry’s future viability. CAHRC, as it works in partnership with industry, is committed to tackling these challenges head-on through the ongoing development of its resources and projects.” With an updated labour forecasting system, CAHRC’s National Workforce Strategic Plan will have more data to support agriculture. CAHRC plans to continue releasing data about the Canadian agriculture workforce, including occupations, skills gaps, recruitment strategies, training opportunities and best practices for improving agricultural workers’ working conditions and well-being. BF - Emily Croft A new initiative from Agriculture and Agri-Food Canada (AAFC) is designed to support Canadian innovators with ideas on how to reduce methane emissions from cattle. The Agricultural Methane Reduction Challenge will award up to $12 million to fund low-cost and scalable projects. “At the forefront of agricultural sustainability, our cattle industry in Canada is setting global benchmarks,” Francis Drouin, parliamentary secretary to federal ag minister Lawrence MacAulay, said in a recent statement. “The new Agricultural Methane Reduction Challenge will drive further innovation in the sector to help fulfill a growing demand from consumers who are asking for Canadian sustainable beef and dairy industries.” The methane reduction program will operate in multiple phases. In Stage 1, up to 20 projects will receive up to $250,000 each to support the development of a technology, practice or process that helps reduce emissions. In Stage 2, up to 10 finalists will receive up to $500,000 each to test their solutions. In the third and final stage, up to two prizes of $1 million each will be awarded to innovators who best demonstrate their ideas and solutions. At the end of each stage, an external review panel will determine which applicants move forward in the challenge. Members of Canada’s ag sector are pleased with the government’s support for methane reduction initiatives. “Dairy farmers’ progress in terms of reducing our carbon footprint is in large part because farmers embrace innovation and research,” David Wiens, president of Dairy Farmers of Canada, said in a statement. “They do not shy away from applying new technologies and progressive ideas on their farms in order to improve their production and to protect the land and the environment. The Agricultural Methane Reduction Challenge will add to our toolbox and help us on our journey towards reaching net zero 2050.” The application deadline is Feb. 7, 2024. AAFC expects to announce its 20 semi-finalists in Summer 2024. BF - Diego Flammini Reinoud Verhoef photo AAFC’S NEW METHANE CHALLENGE
13 Our Advertisers Appreciate Your Business Better Farming | January 2024 You don’t have to be alone in your thoughts; We’re in this together. Let’s talk it out, together. It might feel uncomfortable at first, but small steps can make a big difference to the ones we love. Do More Ag is here to help you embrace the awkward and normalize conversations about mental health in Agriculture. Follow us and visit domore.ag to find tips, resources, and support. #talkitout This year might BANKRUPT US MAKE IT THROUGH ANOTHER SEASON I don’t know if I can 22_0470_MH_DrumsGrp_HalfHoriz_US_MXsp Mod: September 25, 2023 11:27 AM Print: 09/25/23 page 1 v2.5 πSHIPPING SUPPLY SPECIALISTS COMPLETE LINE OF DRUMS COMPLETE CATALOG 1-800-295-5510 uline.ca ORDER BY 6 PM FOR SAME DAY SHIPPING
14 Follow us on Twitter: @PrairieFarming Better Farming | January 2024 The 2023 harvest has wrapped up, and as we enter the new year, many tractors, planters and combines are being put away for the winter. These months are also the ideal time for a bit of winter maintenance. It’s important to clean equipment, empty any fluids that could freeze and check for problems before equipment is put away. Equipment that isn’t clean holds dust, crop residue or grain that attracts rodents. This might cause trouble with wires and belts in the spring. Sprayers should be flushed to avoid clogged nozzles or contamination risk if it’s forgotten the next spring. Some producers might also have protocols to reduce the risk of rust on equipment that has seen road salt, fertilizer or liquid. Taking time to properly winterize equipment and check for required maintenance will have them closer to being field ready in the spring. This month, Better Farming asked our readers what steps they take to winterize their equipment. Here are some of the responses. Brennan, Sask.: We drain pumps, put in sprayer antifreeze, wash and service. Lucas, Alta.: We just blow off the dust and straw or wash them. Colin, Man.: We are probably a little different than most. We don’t wash them before we put them away. We’re trying to avoid any moisture in the machine. When we’re done with a piece of equipment, we will knock all of the dirt off and then blow them down with a leaf blower, trying to get them as clean as possible. After that we’ll run it through the shop, look for any issues to fix over the winter, check levels and then grease it before we put it away. We often leave the guards open to allow the cats access to them. For the sprayer we’ll run two to four pails of sprayer antifreeze through the tank and boom. Once we shut it off, we’ll turn the key on and open all the electric valves and then kill the power so that everything remains open all winter. Oh, and everything gets a quick cab vacuum. Jake, Man.: We take out monitors from tractors and combines and bring them inside. We drain the sprayer, fill the tank and rinse the tank with RV antifreeze. BF Emily Croft photo Digging Deeper HOW DO YOU WINTERIZE YOUR EQUIPMENT? Winterizing equipment can reduce field preparation in the spring. By Emily Croft Winter is a good time to keep up with equipment maintenance. Please send us interesting photos of Prairie farm life. We might feature them in the magazine! Paul.Nolan@Farms.com HAVE SOME COOL PICS?
Count on our new pre-seed herbicide for pulses. Lots of things can let you down. This won’t. New Voraxor® Complete herbicide takes out tough broadleaf weeds with the most consistent1 pre-seed burndown available. It also provides residual activity, to make sure they stay out of your pulse elds. Powered by the chemistries you know and trust, including Kixor® and Zidua® SC, Voraxor Complete raises the bar with the innovative new active, Tirexor.® So you know you can count on it to perform when you need it. Visit agsolutions.ca/VoraxorComplete to learn more. WHAT GOOD IS IT IF IT DOESN’T WORK WHEN YOU NEED IT? Always read and follow label directions. AgSolutions, KIXOR, TIREXOR, VORAXOR and ZIDUA are registered trademarks of BASF; all used under license by BASF Canada Inc. © 2024 BASF Canada Inc. 1 Source: BASF internal trials, 2020, n=10.
16 The Business of Prairie Agriculture Better Farming | January 2024 THE BUSINESS APPROACH Despite a growing need for a more business-oriented approach to farming, few producers are adopting the tools they’ll need to ride out challenging times. Being your own boss, working outside in nature and alongside family, and producing food for the world have all come under the umbrella of “farm lifestyle,” a lifestyle that’s lured many to farming and kept them going for generations. But lifestyle alone isn’t enough to sustain a business. And while research shows that farmers in Canada see the benefits of running their operations more like a business, few are making the necessary changes. Declining adoption According to Farm Management Canada (FMC) research, there’s been an overall decline in the adoption of business practices by Canadian producers, says FMC executive director Heather Watson. Between 2015 and 2020, farmers with a written business plan declined from 26 per cent to 22 per cent, while those with a financial plan dropped from 51 per cent to 43 per cent, she says. Farmers with an HR plan fell from 25 per cent to just 12 per cent, while those who regularly used business advisors to help meet business goals declined from 32 per cent to 23 per cent. “According to our research, less than half of Canada’s farmers report they have an in-depth understanding of their financial information, and around 40 per cent have a structured approach to financial planning to ensure sufficient capital to withstand changes to their business environment,” Watson says. But it’s not as though they see no value in a business approach. In fact, the opposite is true, according to a national survey FMC and Farm Credit Canada conducted in January 2023. “We learned that producers recognize the importance of farm business management practices and believe their goals are more achievable with solid business practices in place, such as monitoring finances and financial performance,” says Watson. “In fact, this was the No. 1 way they felt they could reach their goals.” The joint survey found producers would like to engage in farm business management practices more often than they do, but struggle to find the time, Watson says. Good times impede change But it’s not just time. It’s also a matter of necessity. Tracy Miller photo IS FARMING MORE OF A LIFESTYLE FOR YOU? BUSINESS MANAGEMENT: STILL ROOM TO IMPROVE By RICHARD KAMCHEN
17 The Business of Prairie Agriculture Better Farming | January 2024 THE BUSINESS APPROACH “When profit is plentiful and easy, business planning and management skills don’t have to be strong,” says Kim Gerencser, president and CEO of Growing Farm Profits. “But it’s like anything else: Who wants to pay attention and put effort into a challenging and difficult task when things are good? There’s no need.” Average management can produce above-average results when profits are abundant thanks to good growing seasons and strong commodity prices. And for about the last 15 years, the farm sector has experienced periods when even the bottom 10 per cent of farm managers were abundantly profitable, he says. “There are plenty of large farms that have grown and are wealthy in spite of themselves because the markets and the weather have rewarded average management, have allowed them to grow and expand, and appear to be larger and more successful than they probably are. Those farms can be found everywhere,” Gerencser says. Lenders sending wrong signals Lending institutions also have contributed to many farmers’ indifference to change by not sending the signals that would encourage them to act. “I do think business planning and improved management skills would be elevated across the industry much quicker if the banks collectively got together and said, ‘We really want to see this from our ag clients,’” Gerencser says. But the chances of that happening are extremely slim if his experience in the banking sector is any indication. Gerencser found that lenders’ preferential treatment was given to farmers they deemed “low risk” instead of those who could share their long-term business goals and management strategies. “Low risk comes from profitability, cash flow, and meeting the bank’s leverage and debt servicing ratios,” he explains. “The lower your risk, the more preferential treatment you get.” Under these guidelines, even farms with average management were able to score low-to-medium-risk as a result of bullish commodity markets and favourable growing conditions, Gerencser says. Those that banks demanded more and better business management and planning from were higher risk operations, like borrowers who’d been delinquent in repaying their loans. “The need often forces the hand to improve the management skills. And the need is more often than not coming from the bank,” he says. In this way, banks are dealing with the symptoms rather than the disease. But when things are running smoothly, why rock the boat? Also playing a part in maintaining the status quo is the lending market’s ultra-competitiveness. As banks trip over each other to get at the best farm clients, they tend not to make loan agreements dependent on strict business management and planning criteria because they know a potential borrower can simply walk away and go to one of their competitors, according to Gerencser. Trigger events Watson says change is often precipitated by “trigger events” when the status quo isn’t sufficient to achieve desired performance. In farming, trigger events could include changes to weather, markets, inflation, interest rates, and cost of production – all of which farmers have experienced recently. “While some farmers try to wait it out – hoping to return to status quo Drought and extreme weather are trigger events that can impact the bottom lines of farm operations. Tracy Miller photo FARMERS LOVE MAGAZINES 92% of farmers use ag magazines monthly, compared to 44% for websites, 43% for radio and 10% for farm shows. (Verified Readex Research study)
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20 Our Advertisers Appreciate Your Business Better Farming | January 2024 RICHARD KAMCHEN Richard Kamchen is a veteran agricultural freelance writer based in Winnipeg, Man. – others take action, and this is where we see farmers taking a more strategic approach to farm management,” Watson says. Gerencser hopes it doesn’t take a major reversal in fortunes to force the hands of farmers to adopt better management practices, because such momentous challenges could have widespread destabilizing effects. “Especially in Western Canada, we need a strong ag industry,” he says “If things turn so severe that the entire industry is struggling, and that’s what it takes to force the bottom half of farm managers to adopt better practices – let’s not wish for that. That’s bad for everybody.” What Gerencser anticipates, however, is the next bear cycle squeezing profits and having an effect similar to BSE 20 years ago. “BSE forced a lot of average or less than average cattle producers out of the market. A prolonged bear cycle will do the same thing to grain farmers.” Separating the herd Producers best positioned to ride out coming storms are those who saw the benefits of good management skills, and adopted those practices to accelerate their profits during the last 15 years. “That’s what’s really separating the herd right now,” Gerencser says. Watson adds that Canada’s leading farmers are treating their farms like a business, and in turn are experiencing increased profitability, confidence in decision-making, greater farm team harmony – leading to successful farm transitions to the next generation – and reduced levels of stress and anxiety. “Implementing change requires the right resources, and this may be one of the reasons we often see farmers with larger operations treating their farm like a business. They may have more resources at their disposal to hire additional support in managing their farm business,” she says. But it’s not just the big farm operators who’ve changed, Gerencser insists. It can look that way because successful farms have been able to invest and grow their operations. He says there are plenty of 2,000 to 3,000-acre farms out west that are run like corporations, with a management approach very similar to those of large farms, with the main differences likely being smaller overheads and debt. Their smaller size, however, also permits their owners to continue living the “farm lifestyle.” “But they view the operation of the business with management-first practices. Profit is an expectation and they are incredibly successful,” Gerencser says. “I don’t think it’s a size thing; it really truly is a mindset.” BF THE BUSINESS APPROACH
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22 Follow us on Twitter: @PrairieFarming Better Farming | January 2024 Tax to-dos Farmers may want to consult their tax advisors for a heads-up about the potential for additional mandatory filings. For 2023, Underused Housing Tax (UHT) and bare trust reporting promise to have massive impacts that tax experts are still working through while trying to educate their clients about how they may be affected, says Cara Noble, tax manager at Yates Whitaker LLP. UHT Many farmers may not have realized that they had to file a UHT return last year in addition to their regular tax filings, says Thomas Blonde, a partner with Baker Tilly GWD. This return may be required even for a farmhouse that they live in. CRA originally extended the deadline to Oct. 31, 2023, and then extended it again to April 30, 2024. “So, if a farmer has not filed this, they should make sure that it is filed to avoid possible large penalties – generally $10,000 per house,” Blonde says. Ottawa, however, proposed changes to the UHT in November’s 2023 Fall Economic Statement. The federal government “proposes various Canadian-owned entities to no longer be required to report on the UHT for years 2023 and onward,” says Kingston Ross Pasnak LLP tax partner Allan Sawiak. “The government is also proposing to reduce these minimum penalties to $1,000 for individuals and $2,000 for corporations, per failure.” Bare trusts Sawiak also says that bare trusts are an issue that will surprise many farmers. Previously, bare trusts were exempt from T3 filings, but for 2023, reporting is due 90 days after Dec. 31, 2023, he says. Sawiak explains the changes can affect producers in several common scenarios: Those whose land is owned personally but whose farm buildings are recorded in the farm partnership or the farm corporation; Offspring who are on the farmland title but their parents have a home on that land, or vice versa, such as if the child needed the parents to guarantee their mortgage and the parents were added to the farmland title; Elderly parents having added their adult children to their bank account as part of their estate planning. Yates Whitaker’s Noble reckons that the key scenario will be the one in which an individual is on the land title, but the farm buildings are in the partnership or corporation. “The buildings will likely be considered held ‘in trust’ by the individual for the partnership or corporation, thus creating a filing requirement.” Be proactive Baker Tilly’s Blonde encourages farmers to be proactive with their accountants throughout the year rather than waiting until their year-end to engage. “Often tax planning opportunities are lost when you wait until after your year-end,” Blonde says. He suggests producers ensure their records are well organized and that they submit their information to their accountants as early as possible after their year-end. “Also, let your accountant know of any major current and upcoming projects on your farm,” Blonde advises. BF Jodie Aldred photo BE PROACTIVE WITH YOUR ACCOUNTANTS THROUGHOUT THE YEAR; DON’T WAIT UNTIL YEAR-END TO ENGAGE. FARMERS ADVISED OF IMPORTANT TAX REPORTING CHANGES By RICHARD KAMCHEN The environmental footprint of printed magazines is far lower than of electronic devices. Paper is a renewable resource, is recycled more than any other material, and trees are regrown in managed forests. (Source: www.twosidesna.org) MAGAZINE SUSTAINABILITY
Coveted Antiques Butter churn Branded chainsaws Turnip pulper Article & Photos by LESLIE STEWART LOOKING AT TREASURES THAT COLLECTORS STILL COVET. FARM ANTIQUES & COLLECTABLES snaphappy28 - stock.adobe.com
25 The Business of Prairie Agriculture Better Farming | January 2024 Coveted Antiques Farming is a constantly evolving industry. While we rely on precision technology, our relatives and ancestors had a more hands-on approach. Items from those days bring back fond memories and curiosity for enthusiasts. If you’ve been interested in starting your own collection and would like to know more, don’t be intimidated. There are many experts and resources available to help you on your journey. Guy Heaslip of equipment dealer W.J. Heaslip in Hagersville, Ont. collects many different farm antiques. His collection includes watch fobs, advertising, books, toys, equipment, and more. “There are no two collections that are the same,” he says. “Collecting is subjective. “Dad started in ’59. He likes the cast-iron and the smaller things, but I like tractors and gas engines. I like the mechanical side of things … something needs to be moving. He still likes the tractors, but it’s the difference in age in perspective.” We’ve compiled a list of coveted antiques, with some ideas about tracking them down. Vintage tractors Tractor manufacturers are constantly updating their machines, making tractor collecting an attractive hobby for many. Why they’re coveted: Whether you’re restoring them, driving them to the local fair, or simply parking them somewhere to enjoy the aesthetics of the old-style engineering, vintage tractors celebrate the history of the machines we use every day. Some popular models include the John Deere Model D, a two-cylindered, steel-wheeled machine active between 1923-1953, and the Case IH Farmall, which debuted in 1923 and remains relevant 100 years later. Where to find: Auctions, equipment shows, or listings in magazines or online. There are a variety of clubs that come together to celebrate certain brands or types of tractors, and reaching out might help you locate what you’re looking for. Branded merchandise While a full-scale tractor could be out of your budget, you might enjoy collecting merchandise from your favourite brand's promotional history. Why it’s coveted: These mementos can range from advertising material to clothing to products you may have never expected your favourite tractor manufacturer to have made. Plus, these branded items can be visually attractive. “Early advertising was very colourful,” Heaslip explains. “Massey has some gorgeous printed calendars.” Where to find: Auctions, collector groups, flea markets, and antique malls. You might also check in with your local equipment dealership – you never know what old-time promotional material they might have on-hand from years gone by. Farm toys From scale-models to larger ride-on pedal tractors, farm toys have been popular targets for collectors. Why they’re coveted: Like collecting the real thing, these scale-models bring back memories of our favourite tractors in the past. The toys are often extremely detailed and attractive to display. In addition to the sentimental aspect, some scale models can increase in value as the years go by. Just make sure you
26 Story Idea? Email Paul.Nolan@Farms.com Better Farming | January 2024 save the box it came in if you’re looking to sell later. Where to find: Toy shows, antique stores, auctions, and flea markets. Toy shows are a great way to visit with fellow collectors and gain insight into the hobby. Also, check out your local dealership for replicas of modern machines. Cast iron seats While today’s modern equipment seats are designed for comfort and ergonomic support, the seats of the past were made of cast iron and built for durability. Why they’re coveted: These seats are popular with collectors for their aesthetic value. There are many styles around rural Canada, with different patterns and branding, from tractors and horse-drawn implements like planters, reapers, binders, and rakes. Where to find: Antique exhibitions, local sales, flea markets, digital marketplaces, and community forums. Dairy equipment Before advanced robotics came to milk production, farmers of the past relied on tools like hand-cranked cream separators, butter churns, and milk pails to bring dairy products to their communities. Why they’re coveted: These vintage tools bring back memories of self-sustenance and how farmers once had a more hands-on approach to making our food. Watch out for the McCormick- Deering cream separator, a favourite among collectors. This hand-cranked machine refined dairy products by dividing milk into cream and skim. Where to find: Antique stores, flea markets, or auctions. Wooden wheelbarrows These precursors to our modern wheelbarrows and other motorized tools are celebrated for their craftsmanship. Made from robust hardwood, wooden wheelbarrows were once integral to farm chores. Why they’re coveted: Collectors enjoy these wheelbarrows as they represent the resiliency of the artisan’s design and call them back to simpler times. Where to find: Estate sales and auctions, antiques stores, and flea markets. Vintage implements Before today’s modern machines arrived, farming implements looked different, and some were powered and pulled by hard-working animals like horses and oxen. Why they’re coveted: Collectors look to these implements of the past and see that farming has always been about innovating. Implements like ploughs are sought-after for display and Coveted Antiques Jenny Thompson - stock.adobe.com Stephen Bonk - stock.adobe.com
27 Story Idea? Email Paul.Nolan@Farms.com Better Farming | January 2024 for competition in local plowing matches. These matches celebrate both animal-drawn and tractor-drawn ploughs. Some collectors still seek out the Massey-Harris No. 2 Reaper. This horse-drawn machine was an innovative precursor to modern harvesters. Made with wooden wheels and a cutting blade, this piece shifted grain harvesting from manual to mechanical. Where to find: Antique or equipment auctions, equipment shows, or classified listings. Hand-cranked grain mills Before the industrial mills of today, we relied on people-power to turn grain into flour. Mostly made from wood and iron, these hand-cranked grain mills were essential in many households. Why they’re coveted: These grain mills are a testament to how much grain production has evolved over the years. Whether it’s a statement piece in your home or an active part of your kitchen, it’s a memory of simpler times. Where to find: Antique kitchenware shops, rural estate sales, or auctions. MORE ON FINDING COLLECTIBLES “There are all kinds of ways to find antiques,” Heaslip says. Joining a community of enthusiasts is one highly recommended idea. You can go to nostalgia shows all over Canada, or take a day trip to a flea market. “It’s nice to meet people. They’re helpful, friendly, and honest – that’s generally how it goes. “If they know you’re a collector and they’re a collector, you’ve got a common ground.” Auctions are another option for people looking to find collectables, and distance is no longer an issue. Today, you can visit different auction websites to bid on antiques worldwide. This allows you to find more treasures than ever before. BF Coveted Antiques rasilja - stock.adobe.com
28 Our Advertisers Appreciate Your Business Better Farming | January 2024 BENEFITS OF CALCIUM Calcium is an essential nutrient that has been slowly depleting from Canadian soils over the years, and it’s possible that your farm is starting to feel the lack. What is calcium? According to Morgan Duggan, the head agronomist with Norstar Agriculture in Edmonton, Alta., “calcium is a lot of things, but overall, it’s a macronutrient that is required to grow a crop.” Like calcium is good for bones in humans, it also has “a big role for the ‘bones’ of the plants – like the cell walls, membranes, and plant structure.” Nutrients are considered either micro- or macronutrients and are categorized by the amount needed in the crop. As their names imply, micronutrients are needed in tiny amounts, and macronutrients are needed in large amounts. Calcium is considered one of the six macronutrients: N, P, K, S, Ca, and Mg. If it’s a macronutrient, why is it not always included with regular fertilizer blends in Canada? Duggan explains that “here in Canada, we broke the land pretty recently – about 100 years ago. The calcium numbers in the soil held up really well until the last couple decades, so we never needed to add it back into the soil.” However, regular removal of a nutrient without replacing it will eventually lead to a deficit, no matter how much you start with. “We are starting to see that deficit now.” What does that deficit look like? Turns out, calcium deficiency is pretty subtle. “You don’t actually see the calcium deficiency outside of a tissue sample, or low pH in a soil sample,” explains Duggan. “You might see deformities in new growth, but often Morgan Duggan photo GOT MILK? By STACY BERRY YOUR CROP & YOUR SOILS COULD BENEFIT FROM MORE CALCIUM
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