AgWired

There doomsayers and there are realists. A report in a Saskatoon, Saskatchewan newspaper caught my attention. In my opinion, it adds to the farming confusion – But at the same time, it lays it on the line.

Family grain and oilseed farms can no longer turn a profit, and society is at a crossroads where it must choose whether to subsidize them or let them fade away, a University of Saskatchewan professor says. Agricultural economics professor Hartley Furtan says an analysis of Statistics Canada data from 2003 shows government subsidies and income earned outside farm gates kept family farms. With similar incomes in 2004 and 2005, and a bleak outlook for 2006, it’s time for society to make a choice.

“If the sector is not important enough to warrant more financial support, let the market process take its course and we will have fewer farm families with less grain and oilseed production,” writes Furtan. “If it is the families we care about, we need to consider new policies such as guaranteed annual income for farmers.”

Canada’s new Ag Minister Chuck Strahl begged about 2,000 farmers in an Ottawa, Ontario rally for more time to solve the income crisis plaguing the country’s agriculture sector. Some heckled; others even turned their back on him.

Obviously, unfair to the minister, it shows how deep the hurt is on the farm. In fact, in Ontario, 70 percent of farmers don’t get their primary income from the farm

Siemens Says

While driving south from Red Wing and a little north of Rochester, MN, I passed an elk farm just before it got dark. Very pretty picture. Snow covered hillside and lots of these animals. They were a long way off so I pulled over on a very busy 4-lane and put my camera on a small tripod on top of my car to snap a couple pics.

Of course it was about 29 degrees, windy and 18 wheelers blowing past and rocking the car so this was not an easy thing to do. This was the best of about 10 shots I took before common sense took over and I got back into the car (warm) and back on the highway.

In attending the Canadian Association of Ag Retailers Icebreaker Reception in Saskatoon, Saskatchewan recently, I got the feeling there’s optimism in the air.

Several people told me it’s not near as negative as some make it out to be. One person in the hotel elevator told me farmers are the eternal optimists – they’ll make it happen.

Yes, that is all fine and good. However, while also being an optimist, I’m also a realist and recognize when farmers get ready to head to the fields, their attitudes change. This year, it all depends how the banker views their finances.

One farmer at Morris, MB told me a few banks are telling some farmers – thanks but no thanks. You’re in fine shape, but two years of poor crops and no inventory, and low commodity prices are make it difficult to pencil out a profit, we don’t need your business. Case closed.

How many of those cases are there, I’m not sure, probably not very many. For a group that’s shrinking in numbers, and for the most part those few are most likely the younger set, two or three is too many. Yes, another bank may look at their case, and may indeed finance their operating loan, but in some cases, no one will. What happens to that farmer and to his land? Someone will farm it, but the mix gets smaller.

For those who are left, who have the finances, and who look for the small niches and little positives, the excitement level rises because ingenuity, new crop prospects, a support industry ready to lend that helping hand, it’s a brand new year. It’s simply, “time to get at her,” as they say . . .

Siemens Says