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Western Update – Is the Mega-Farm Model Fatally Flawed?

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Western Update 

 Is the Mega-Farm Model Fatally Flawed?
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Bigger is better. Go big or go home.

The push for excess in all things, it seems, knows no bounds. But how big is too big? Or is that the wrong question to ask?

From combines, seeding units and land bases, to suburban houses, fast food meals and the cars we drive, there’s been a push to bigger in recent years. This expanding of just about everything (including debt) stems from a number of drivers – incredible wealth and easy credit on the consumer side, but also access to low interest rates and a push for ‘economies of scale’ on the farm.

Canola School: Will Canola Supplies Be Tight? – A Market Update With Glen Pownall and Marlene Boersch
canolaCanola supplies could be tight by the end of the 2014-15 crop year, depending on who you believe. On one hand, Statistics Canada last week pegged 2014 canola production at 15.6 million tonnes. On the other hand, most of the trade is estimating production at between 14 and 15 million tonnes, with carry-out stocks next summer of around 1 million.

 This Week on Real Ag – Neonics, Avian Flu, USDA Report and the TechTour Live – Dec 12th, 2014
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The latest on the Ontario government’s plan to regulate neonic seed treatments, the avian influenza outbreak in B.C.’s Fraser Valley, changes at the Canadian Grain Commission and a review of the markets, including the sharp drop in feeder cattle futures, over the past week – here’s the TWORA podcast for December 12th.

Russia’s in a Pickle, Oil is Cheap (ish) & Southern Soybeans Abound – A Market Update
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Rumours are building again that Russia may limit their grain exports (specifically wheat) and the government might start increasing the purchasing price from farmers for the government reserve stocks (the government is definitely worried about rising domestic food prices). This would incentivize producers to sell to the government versus grain merchants/exporters. SovEcon said earlier in the week that Russia’s grain exports don’t look to be slowing down, thanks to a weaker ruble and said increasing domestic prices.

 

Richardson to Build New Elevator at Dauphin, Manitoba
pioRichardson International Limited has announced its going to be replacing its wooden crib elevator in Dauphin, Manitoba with a large high throughput grain handling facility. The company says it will begin construction in April on a new Richardson Pioneer elevator with 10,000 metric tonnes of storage space to replace the 5,750 metric tonne elevator it acquired from Agricore United in 2007. The new facility will incorporate 15,000 metric tonnes of existing steel bin storage, which will be upgraded to match the receiving and shipping speed of the new build.


Created December 16, 2014 | Category: Agronomy

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