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Year in review

Agriculture.com Staff 01/02/2007 @ 1:35pm

Well, in the beginning of 2006 it looked as if most farms would be done by the fall, as grain prices for most commodities sunk to their lowest levels in years. Plus, coming off of disasters of 20002, 2003 and 2004 with no help from any of the Canadian farm programs to most farmers, doom and gloom were on everyone's mind.

Spring seeding came with drastic increases in fertilizer and other costs. Most farmers seeded crops that cost them the least amount of expenses. But moisture was not an issue, as much of the province was sitting on a moisture.

Then, in late June after months of flooding, the rain stopped all of a sudden. The land baked and crops started to wither. Those who had a over abundance of rain did fair better than the extreme south of the province, but it was no bumper for most farmers. A really good average crop.

But the drought in the U.S., Australia and southern Canada started to make the news and by the end of 2006, most grain prices increased substantially. Canola was up in last two months of the year -- some $2.00 Canadian a bushel. Peas had increased some $1.50 since fall barley were over $3.00 a bushel along with oats in the upper $2.00 range.

The wheat market was a talk all over the globe, but thanks to the CWB, most Canadian farmers saw some of the lowest initial prices in history. There have been some gains in initials but they still show a poor PRO compared to other markets. The CWB debate is strong, as both sides are taking a stand as the government of the day is looking at changing the CWB. Durum is another crop that has a very poor initial compared to North Dakota cousins and is a topic of strong discontent on most Canadian durum farms.

Biodiesel and ethanol have been a huge topic, but in true Canadian style the powers that be are studding the situation and only minor announcements have been made.

The cattle market is funny -- it started in fall with a stronger fall cattle sales then as the price of grain crept up the prices of calves dropped like a stone. But when one does the math, on extra cost of feed for the feedlots the huge price drop is not justified.

So for, maybe for the second time in my faming history (1978-1979 was the first), grain prices are starting to take off. Maybe we will finally get paid for what we produce in 2007. One can always dream. Good luck to all in 2007.

Well, in the beginning of 2006 it looked as if most farms would be done by the fall, as grain prices for most commodities sunk to their lowest levels in years. Plus, coming off of disasters of 20002, 2003 and 2004 with no help from any of the Canadian farm programs to most farmers, doom and gloom were on everyone's mind.

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