The AgriPost
Farmers Face Significant Challenges Going into 2023 By Harry Siemens A survey of farmers on Twitter on October 15 asking about the three top challenges farmers face going into 2023 yielded interesting results. Chris a grain farmer near Edmonton, AB said human resources like finding good people to work on the farm. Also, government policy and ensuring governments listen to the commodity commissions farmers fund [pay for] with their checkoffs to advise and work with governments. His third point dealt with inflation and rising costs. “If we keep the same margin as before but increased risk, we are headed for a world of hurt,” said Deven Bailey, a young farmer from Western Virginia, tweeting in response that high interest rates, supply chains, government policy, and consumer influence. As someone who studies the agriculture sector at the University of Saskatchewan, Stuart Smyth said the following three challenges may be important: The potential fallout of the proposed federal government fertilizer use limits. With the COP-15 meetings in Montreal in December, the federal government may make additional carbon tax commitments to show Canada’s world climate conference is doing it correctly. And increased activist pressure to ban glyphosate would hurt production significantly. Günter Jochum, who farms with his family west of Winnipeg and is the president of the Western Canadian Wheat Growers agreed with Smyth.
Ron Krahn said “Harvest 22 is complete. Feels good. Been a long season again. Despite a late and muddy spring, we will call this year a success - #grateful.” Submitted photo.
“Especially since those policies will not change our food’s high quality, safety and affordability. These policies will achieve the opposite.” Ron Krahn who farms at Rivers, MB said government policy that proponents base on idealism rather than practical and logical thought. “We should encourage farmers to produce sustainably not throw up every roadblock possible as farmers grow food.” Korey Peters at Randolph, MB said volatile markets, especially if commodity prices fall, the input costs won’t follow at the same speed. “Government red tape with possibilities of more uneducated/non-reality based policies coming. We need a seat at the tables and the rising cost of labour and finding ways to keep employees on
the farm.” Rob Sommerville of Alberta said the unpredictability of everything. “An already high debt load limits ag’s resiliency and ability to adapt. With the challenges and obstacles the ability and wherewithal to learn fast enough to remain competitive. One example is the limited internet in many rural areas.” Cam Dahl, general manager of Manitoba Pork raised several issues for discussion. The international market volatility and uncertainty both for inputs and products sold. Also the availability of labour and how it impacts growth, productivity, biosecurity, and interest rates. Julie Mortenson who farms in Saskatchewan said the big risk of high fertilizer costs and current high commodity prices. “I’d bet grain prices will drop first and farmers
will feel the pinch hard.” Also the widening gap between consumers/government and farmers. Land ownership as it relates to high land prices and higher interest rates and competing with increased investment by groups other than farmers and continued foreign ownership. Brian Kennedy of Calgary, AB said the number one challenge is the rising cost of inputs and debt. In Alberta and parts of Saskatchewan drought because in many areas it is still desperately dry and the shortage of farm labour. Other respondents said risk management-hedging strategies have become costly, and the political instability worldwide influences markets and input and land costs eroding profit margins. Another Manitoba farmer said high inputs and supply chain concerns. Increased risk with farmers holding higher input costs before producing the crop. “And with a recession looming or will be in near future and how that’s going to affect grain prices.” In addition the challenging weather patterns and unknown government policies and what reducing emissions by 30 per cent will look like. He doesn’t think it will reduce current rates because food security is a worldwide concern. “And reducing rates will reduce yields, making farming not feasible.” Ron Krahn said “Harvest 22 is complete. Feels good. Been a long season again. Despite a late and muddy spring, we will call this year a success #grateful.”
October 28, 2022
Excessive Moisture Insurance Coverage Levels to Increase Manitoba producers will receive higher Excess Moisture Insurance (EMI) coverage levels as part of the AgriInsurance program for the 2023 crop year. “Extreme weather conditions continue to challenge and threaten the viability of many producers,” said federal Agriculture and Agri-Food Minister Marie-Claude Bibeau. “With the increasing cost of inputs, these enhancements to the AgriInsurance program’s Excess Moisture Insurance will allow for greater coverage in the event of financial losses.” Basic EMI coverage is a standard feature of the AgriInsurance program that provides protection against the inability to seed due to wet conditions. Producers can choose increased coverage options at higher premiums. Since 2000, basic EMI coverage has been $50 per acre, while higher coverage options increased in 2014 to $75 and $100 per acre. For 2023, basic coverage will increase to $75 with higher coverage options increasing to $100 and $125. These changes were made in consultation with producer groups that have expressed interest in higher coverage levels due to rising farming costs. The province’s share of premiums for the 2023 EMI program is estimated to be $8.6 million. Manitoba Agricultural Services Corp. (MASC) reports there were 866,000 unseeded acres in Manitoba this year (approximately eight per cent of the total acres), resulting in estimated EMI indemnities of $53.5 million. “The excessive moisture during the growing season this year brought extremely challenging conditions for producers across our province,” said Manitoba Agriculture Minister Derek Johnson. “The AgriInsurance program exists for them in these kinds of situations. The newly increased coverage provided through Manitoba Agricultural Services Corporation will bring further assistance and relief to those who need it most.” MASC will send EMI confirmation letters to all existing AgriInsurance clients later this month to reflect the new coverage levels and premiums. Producers have until November 30 to make changes to their EMI coverage for 2023 by contacting a MASC Service Centre. Under the Canadian Agricultural Partnership, AgriInsurance premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Manitoba government. Administrative expenses are paid 60 per cent by Canada and 40 per cent by the Manitoba government.