New Feed Mill Means 20 Jobs To Westman Community

Original Content posted from:

https://www.discoverwestman.com/local/new-feed-mill-brings-promise-of-20-jobs-to-westman-commu

The mayor of Killarney-Turtle Mountain is excited about the prospect of 20 new jobs coming to his community.

HyLife has applied for a conditional use permit to build a new feed mill just northeast of Killarney. “The hearing is coming up on April 19th and if it passes we are looking forward to a long standing working relationship again with HyLife” said Mayor Rick Pauls.

Pauls says attracting that many jobs to a small scale community is a hard thing to do and the fact they have someone willing to invest that much into the community will mean a lot to the entire region. “This could be 20 new families which means maybe up to 80 new people moving in and that will benefit our schools and our businesses.”
HyLife has invested millions into the area leading up to this announcement and Rick Pauls sees the feed mill as an expansion of that commitment and geographically he says Killarney was a central location for the plant.

Council will hold the conditional use hearing on April 19th. “This will be built in the ag-zone and it crosses over because it isn’t actually farming but farm manufacturing. So they do need to get a conditional use permit the same as other elevators and feed mills in the community have had to do.”
Mayor Pauls doesn’t anticipate any problem getting the permit approved but he says nothing is for certain until after the hearing.
“If we approve the permit on April 19th, HyLife is good to go and construction would start shortly after the hearing.” Killarney-Turtle Mountain Mayor Rick Pauls feels the community is on a real roll.

 

Farm debt seems manageable, FCC head says

THE AGENCY HOLDS CLOSE TO A THIRD OF ALL FARM DEBT IN CANADA

“Canadian agriculture is strong and stable,” he told the annual meeting of the Canadian Federation of Agriculture. However, farmers need to keep their pencils sharp and continued diligence is required.

FCC holds more than $30 billion of that debt and the federal agency is faring well, he said. “More than 99 per cent of our portfolio is in good standing,” Hoffert said. He rated agriculture’s overall financial health as very good and said the opportunity for the sector “has never been greater.”

Farm debt has climbed in recent years but so has farm cash income which reached $59.4 billion in 2015 compared to $40 billion in 2007, he said. While farm income for 2016 will likely be just below $58 billion because of lower crop returns, this year’s numbers should at least match 2015 if not better that result, he said. “Farm cash receipts have grown steadily during the last 10 years. Farm debt can’t be compared to consumer debt where incomes are stagnant.”

The farm debt-to-asset ratio has eased and “is in a healthy situation,” he said. Rising land values and higher costs for machinery and buildings are the main factor in the rising debt. “This is a very capital-intensive industry.” Farm asset value in 2015 was $561.1 billion compared to $267.4 billion in 2005. The debt-to-asset ratio is healthy and liquidity remains strong, he said. In 2015, the debt-to-asset ratio on Canadian farms remained historically low at 15.5 per cent, compared to the previous five-year average of 15.9 per cent and the 15-year average of 16.7 per cent. A low debt-to-asset ratio is generally considered better for business, since it provides financial flexibility and lowers risk for producers.

Liquidity in terms of producers to meet short-term payments, and solvency – the proportion of total assets financed by debt – have remained consistently strong over the past five years, he said.

Beyond the balance sheet, there are other positive signs for Canadian agriculture, he said. More than 12,000 young men and women are studying agriculture-related topics in post-secondary schools. “Agriculture programs are among the fastest growing and there are more than 114,000 jobs available in the sector,” he said. Canada is rated No. 1 globally in food safety performance, according to the Conference Board of Canada, he said. It’s third in agriculture sustainability. “We have an amazing opportunity to make Canada an agriculture superpower,” he said referring to the growing world population expected to reach 9.5 billion in 2050. “The opportunity has never been greater; we need to dream bigger. “In the next 40 years, humans will need to produce more food than they did in the previous 10,000 put together.”

Asked what FCC could do to assist young people who want to farm but don’t have land, Hoffort said there are no easy solutions. “We have to find innovative ways to assist people in that situation.”

https://www.manitobacooperator.ca/news-opinion/news/farm-debt-seems-manageable-fcc-head-says/?utm_source=pardot&utm_medium=email&utm_campaign=gmp

Upcoming Events

We will be in attendance at the following upcoming trade shows:

Manitoba Dairy Conference – Dec 7-9, 2016 – The Victoria Inn, Winnipeg, MB

Prairie Livestock Expo – Dec 14, 2016 – The Victoria Inn, Winnipeg, MB

MB Ag Days – Jan 17-19, 2017 – Keystone Centre, Brandon, MB

Stop by our booth to say Hi!

Land For Tender

FARMLAND FOR SALE BY TENDER

Sealed bids for the purchase of the following parcels of land, located in the RM of Portage la Prairie and in the RM of Westlake-Gladstone, Manitoba, will be received up to 5.00 pm on December 7, 2015 at the offices of CanadianFarmRealty.com, Box 7, Graysville, MB, R0G 0T0, Attention: Dolf Feddes:

Parcel number     Legal Description Acres

1                              NE 6-14-8W                          156.33

2                              NE 31-13-8W                        160.17

3                              NE 7-14-8W                          134.78

4                              SW 5-14-8W                         160.0

5                              SE & SW 18-14-8W              169.04   includes yard site with 2 tarp shelters used for machinery storage (30’ * 116) and approximately 42,000 bushels of grain storage.

6                              NW 22-12-8W                      158.0

7                              SE 17-13-8W                         148.83

8                              NE 17-13-8W                        157.03

9                              NW 19-12-7W                      143.39

10                           NW 9-13-8W                        141.49

11                           SE 23-12-8W                         147.32

12                           NE, NW, SE, SW 28-13-7        640

13           Pt of NE 26-14-9W, NW 25-14-9W, Pt of NE 35-14-9W, W1/2 of NW36-14-9W, SW36-14-9W, SE35-14-9W, SW25-14-9W.                                513.54 total acres includes yard site with Goodon machine shed, some grain storage and older cattle facilities.

14                           SW 20-13-8W                       157.42

15                           SE 20-13-8W                         153.69

16                           NE 11-12-8W                        206.55

17                           Pt of SE/SW 21-13-8W            6.27

The following will apply to all tenders:

Interested parties must rely on their own inspection and knowledge of the properties. Bids shall address each parcel as a separate unit. Tenders are required to offer a total purchase amount for the parcel that is the subject of such tender. The vendor reserves the right to reject any or all bids. Purchaser will be responsible for total of 2016 property taxes.

All offers are to be submitted in sealed envelopes accompanied by a certified cheque or bank draft payable to “Royal LePage Riverbend Realty in Trust” for 5% of the tendered amount.  Cheques will be returned in respect to tenders that are not accepted.

Successful bidders will be asked to enter into a formal Purchase agreement covering the terms and conditions of the sale with a possession date of January 8, 2016. The purchaser(s) shall be responsible for GST or shall self-assess for GST.

  • Offers on any one parcel shall not be contingent on the successful purchase of another parcel.
  • Offers on any one parcel can be contingent on not being successful in the purchase of another parcel. Buyers should clearly state their order of preference of tender parcels.

Tenders will be held in confidence and not be released to the public. Any questions regarding these parcels, or this tender can be directed to: Dolf Feddes, REALTOR at 204- 828-3371 (office) or 204-745-0451 (cell).

Despite high beef prices, we love our burgers and steaks

Guelph Mercury

Beef prices have gone up on average by more than 40 per cent across Canada in the last three years.

Depressed inventories across North America and higher feed costs have led to spectacular retail price hikes for products like round steaks, prime ribs and ground beef. Canadians’ love affair with our favourite red protein is definitely being challenged these days by what’s happening at the meat counter.

Whether we like it or not, this new normal in beef means that consumers waiting for discount prices will have to wait for a very, very long time.

Rest assured, this phenomenon is not exclusive to Canada. Beef prices worldwide are reaching record levels. In the United States, beef prices have almost doubled since 2009.

In Europe, the situation is even worse. Beef production is dropping due to the uncertainty generated by the implementation of the new common agricultural policy and the end of dairy quotas this year, hence putting pressure on retail prices upwards. In short, no one in the western world is immune to what’s happening with beef prices.

Nonetheless, despite higher prices and widespread claims that cattle production is an environmentally unfriendly way to feed the world, the future of the cattle industry couldn’t be brighter. Skeptical?

Here’s the argument. First of all, producers who have remained in the industry are making a decent living. The cattle industry has been too often affected by economic cycles, food safety crises and trade wars, but things are much calmer now. That’s quite the contrast from what has happened over the last few decades or so.

Second, and most importantly, over the past two decades beef has been slowly becoming a luxury food product, as should be the case. Paying a premium for beef is something the market has primed for already. Although demand per capita for beef in Canada has steadily dropped over the last 20 years, price hikes haven’t really accelerated the trend in the last three years. This may suggest that many of us still remain loyal to our burgers and steaks.

It seems consumers sticking to beef will either trade down, buying lean beef in lieu of extra lean for example, or will buy beef less frequently. Because of our aging population, this only makes sense. Many will look for other more affordable protein sources like chicken or pork.

Pork prices, interestingly, have gone up as well, despite lower prices at the farm gate. Continuous, symmetric benchmarking by retailers between pork and beef prices allows both categories to rise, even if wholesale pork prices have actually gone down.

That’s just the way things work in food retailing. Retail prices are sometimes decoupled from what goes on at the farm. The most significant case was in 2003 when mad cow disease lowered prices at the farm gate by 70 per cent overnight, and prices for beef products at retail barely moved. Essentially, this means meat prices across the board will likely continue to rise although not necessarily at current rates.

The resilience of beef demand is making a case for protein’s currency in the market place. The market is showing consumers’ willingness to pay for the actual cost of meat production.

If the industry wants to address market-based concerns such as traceability, animal welfare and environmental stewardship, this influx of capital can only spell good news.

This is also good news for natural and organic cattle farmers out there. In recent years, price-point differentials between conventional and specialty beef products are slowly decreasing, giving a legitimate choice to those who want to support different production protocols. For those concerned about affordability, more affordable substitutes are plentiful, including vegetable proteins and fish.

The cattle industry is doing much better now, and its brand equity as a commodity seems strong. Peculiar marketing campaigns to sell a breed as a superior product, as we saw with certified Angus Beef, may not be as necessary in the future.

Consumers are not only smarter, but they seem keen to embrace beef as a premium, high-quality food item on their menu.

Sylvain Charlebois is a professor at the food institute at the University of Guelph. He is currently on leave at the University of Innsbruck in Austria.

Canadian Hog Production

Shrinking hog production in Canada

The Canadian sow and pig herds have shrunk over the last ten years. In 2014, about 25 million hogs were produced. That’s slightly below the 2013 output and about 6 per cent lower than the 5-year average.

The sow herd saw a small year-over-year increase at the end of 2014, mostly because of more favourable profit margins compared to 2013 levels. The sector enjoyed record prices in July 2014, due to tight supplies resulting from Porcine Epidemic Disease (PEDv) in the United States.

The USDA March report of hogs and pigs shows the hog inventory is up 7 per cent and the breeding herd is up 2 per cent year over year. Hog prices have declined markedly with recently increased supplies. Canadian hogs exported south of the border may face more pressure than last year and we should see prices flatten throughout the next few months.

Pigs and profits: what will the new Codes of Practice change?

The industrial production of hogs has been challenged by growing consumer concern with farm animal welfare. And large global retailers have been supportive of these concerns; many have announced new guidelines for pork suppliers.

These developments helped to drive the development of the Code of Practice for the Care and Handling of Pigs (2014) in Canada. Producers are now required to fit new barns with group housing at an estimated cost of $2500-3000 per sow or to retrofit existing barns by 2024. Those costs will depend on the scale of operations, but some industry estimates reveal it will be about $700 per sow to convert from individual stalls to group housing for a typical herd of 1200 sows.

While some studies suggest consumers are willing to pay for enhanced animal welfare, it’s too early to estimate the impact to profitability. Larger farms will be better suited to absorb the additional costs than the smaller and/or independent producers. And there’s concern that this won’t be the last change in codes; it was another change in the Code of Practice in the 1980s that prompted a move from group housing to individual stalls.

Expanding global exports and consumption = Opportunity

Canada exports more live hogs than any other country, and is projected to be the world’s sixth largest producer in 2015. We are also a major supplier of pork meat in the world market.

World pork consumption is estimated to continue to grow 11 per cent between 2014 and 2023, largely driven by emerging economies such as China, Viet Nam and Brazil. U.S. pork consumption and imports are likely to grow by 13 per cent and 12 per cent respectively for the next 10 years. With the increasing odds of consumers and countries refusing pork from antibiotics-treated and/or controversial animal-welfare production systems, it may be necessary for Canadian producers to consider various options.

The Canadian hog sector needs to assess the risks of falling behind other global exporters. Transitioning will cost producers, but so would losing market share in this expanding world market. Not all markets are created equal: some are volatile but offer premiums, while others offer stability but tighter profit margins.

To share the opportunities and thrive in the global competition, it’s critical for the Canadian sector to look ahead into the challenges and lead the charge to provide solutions.

Joe Chen, Agricultural Economics Intern
From FCC website https://www.fcc-fac.ca/en/ag-knowledge/ag-economist/an-outlook-for-the-canadian-hog-sector-look-around-and-look-ahead.html

Reprinted from Market Watch
PI Financial
David Derwin . Joseph Alkana . Adam Pukalo
Contact us, Canada’s leading independent commodity futures advisor at
www.Commodity-Options.ca or call us at 1-844-982-0011.
Watching Land Prices

We work with farm operations on a risk management plan for their entire operation. This not only includes their grains, livestock, and CDN$, but their fertilizer, fuel costs, and even land. Today we give an update from our partners at Canadian Farm Realty on what you should know if you are looking at selling your land. First, although the price of farmland isn’t moving upwards anymore, there is still a lot of interest from farmers to expand their businesses. Of course, continuing low interest rates do help very much. Second, they are seeing some renewed interest from European buyers coming into the Canadian market. After a few slow years, it looks like this summer will see more activity from people investigating their options and also from farmers ready to purchase. Sky high land prices in Europe and a more favorable exchange rate make Western Canada attractive for them again. Dolf Feddes has been on sales and marketing trips to Holland and Germany and feels that this market is definitely past its low point. Third, they have also become more active helping sellers to set up a tendering process for their farm land. Because it is a more balanced market, tendering is not as ‘easy’ anymore as in the recent past. Proper advertising, contacting potential bidders and having the tender due dates and possession dates correct are essential to get top dollar for your farm land. They have seen more sellers recognizing this and contracting us to guide them through this process. Go to www.canadianfarmrealty.com for more information on Manitoba’s number one farm team any time to investigate your options or call them at 204-326-4567.

Bottom Line: We help farms with their risk management plan not only to protect their price, but other areas of their operation too.  Visit our website at Commodity-Options.ca or call us at 844-982-0011, that’s 844-982-0011.

RM of Roland – Farmland for Sale by Tender

Sealed bids for the purchase of the following parcel of land, located in the RM of Roland, Manitoba will be received up to 5.00 pm on April 2, 2015 at the offices of CanadianFarmRealty.com,

Attention:
Dolf Feddes
Box 2046,
Carman, MB, R0G 0J0

SE 26-4-5W, 160.0 acres

Conditions of Tender:

  • Interested parties must rely on their own inspection and knowledge of the property.
  • Tenders must be accompanied by a deposit in the form of a certified cheque or bank draft of 5% of the amount offered, payable to Royal le Page Riverbend Realty in Trust. Deposit cheques accompanying unaccepted bids will be returned.
  • The land is rented for the 2015 crop year. Purchaser can elect to either take possession April 20, 2015 including the rental contract or take possession November 20, 2015 after the rental contract expires. Possession date of preference should be stated in the tender letter.
  • Highest or any tender not necessarily accepted.
  • The purchaser(s) shall be responsible for payment of GST or shall self-assess for GST.
  • Successful bidders will be asked to enter into a formal Purchase agreement covering the terms and conditions of sale.
  • Tenders will be held in confidence and not be released to the public.

Any questions regarding this parcel or this tender, including the rental contract for crop year 2015, can be directed to:

Dolf Feddes,
204-828-3371 (office) or
204-745-0451 (cell).

Farmland Values

ManitobaManitoba

Farmland values in Manitoba increased an average of 13.9% in the second half of 2012, the second highest provincial increase in the country. The previous two reporting periods saw increases of 10.3% and 1.9% respectively. Farmland values in Manitoba have risen consistently since 2001 and this is the highest increase seen since FCC began reporting results in 1985.

Despite drought conditions in most areas, farmland values generally increased throughout the province. Strong commodity and stronger cattle prices, along with low interest rates, helped spur this growth. The continued consolidation of the industry and interest from out-of-province buyers also drove up values.

Competition between the supply-managed industry, grain sector and lifestyle farmers caused prices to increase in the province’s southeast region. In the Interlake region, stronger beef prices affected demand. In the south, south central and southwest areas, the grain and oilseed sectors led the rise in farmland values. These sectors also increased farmland values in the northwest region, with lower-valued land experiencing the largest increase in value.

Saskatchewan
Saskatchewan

In the second half of 2012, farmland values in Saskatchewan increased an average of 9.7%, following a similar increase of 9.1% in the first half of the year. This followed a gain of 10.1% in the previous reporting period, continuing a trend of price increases that began in 2002.

 Most increases occurred in areas that had previously experienced flooding and had, as a result, seen few changes in the past two years. While the strong demand for high-quality, clay-based land continued, prices for this type of land tended to remain stable over the reporting period. The price of lower-valued land experienced a greater increase during the current reporting period.

 Interest from out-of-province buyers continued. Some retiring farmers sold large blocks of land to take advantage of the strong prices to sell their entire operation.

Throughout Saskatchewan, many of the land sales weren’t advertised. Landowners who rented out their property continued the trend of selling privately to their tenants.

For all land values across Canada, click on the link below:

www.fcc-fac.ca/en/Products/Property/FLV/Spring2013/index.asp

Welcome Henry Carels

henry 2013 large Canadian Farm Realty is proud to welcome

 Henry Carels

 to our team of hardworking agents 

Henry grew up on a dairy & grain farm and now resides in Brandon. In the past 35 years he has been very active as an owner/operator of a dairy & grain farm, grocery business & a John Deere farm equipment dealership. He was also a director on various boards along with volunteering as a coach & manager of local hockey teams.

Henry is excited to join the Canadian Farm Realty team, focusing his efforts in Western MB and looks forward to working with his past clients and future customers.

To reach Henry, call 204-573-5396 or email henry@canadianfarmrealty.com