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

Spring

As we are coming to the end of March it looks like spring is still far away. The second major snow storm in 2 weeks is going through Saskatchewan and Manitoba right now, bringing more moisture but also, quite possibly, further delaying spring activities. Hopefully winter will be gone in the next few weeks leaving moist fields ready for spring planting. Livestock producers are also looking forward to warmer weather as feed inventories are quite low and calving in the snowy and cold weather has its own challenges.

The prospects for our industry however are still very optimistic. Grain prices are still very good with some good opportunities to lock in decent prices for the 2013 crop year. With the available moisture there should be ample opportunity to get a good forage crop bringing relief to the cattle industry.

For us at CanadianFarmRealty.com we are working towards the end of ‘trade-show’ season. Our team has visited a large number of shows to promote listed farms in Manitoba and Saskatchewan. So far we have received good response from buyers from different areas. Although the European interest is not as large as a few years ago, we already have some families confirmed to come over this summer. It looks like there is still enthusiasm and eagerness to buy a farm on the Canadian Prairies.

We are also happy to announce the newest member of our team, Henry Carels of Brandon, MB. Henry has finished his licensing course and will be working from out of his home office. Henry comes originally from the Bruxelles area and has been involved in many business ventures, most recently as owner of Enns Brothers, John Deere dealership in Brandon and Neepawa. We are very happy to have Henry in our team as this will help us better to service our clients in Western Manitoba.

On behalf of the CFR farm team I wish you a good spring and as always you can contact any members of our team to get a market update or an opinion of value on your property.

Dolf Feddes

First Cut

As dated in the last blog comments, spring seeding went extremely well this year and it’s looking like in most areas of the Canadian Prairies farmers are getting timely rains. It could be a great year for crops if the favourable conditions continue. In South East Manitoba, most livestock farmers are busy harvesting the first cut of forage crops. Early reports are that crop quality is extremely good and quantity is average to above average.  As we are looking at a fairly early first cut, it appears there should be no difficulties getting three healthy cuts in this year.

In the farm sales side, we are experiencing a high number of sales and not very many new listings coming on the market. Especially grain farms and smaller dairies both in Manitoba and Saskatchewan are in short supply with a large number of qualified buyers in the market right now. Keep in mind that this is one of the best times to consider selling your farm as we’re looking at most sectors in the farming industry to be doing fairly well and people are willing to pay that little bit extra to expand their acres. After being in the farm sales business for almost 15 years, I can tell you that the old saying that it is good to sell when things are going well is still very true. So if you have contemplated selling in the last few years, now would be an opportune time to try to maximize the most dollars for your operation. There’s a large number of farmers with the ability to expand their operations. Feel free to give one of our team members a call to explore your options.

Livestock and beef farming seems to be doing well with more farms selling in the last 3-4 months than we’ve had in the last 7-8 years. The beef industry seems to have turned around after a long stretch of difficult years and there is a greater demand for those types of farms as well.

As mentioned earlier, we are in the process of updating our videos for the spring. Feel free to check them out on this website in the right bottom corner of this opening screen or order a DVD through our office manager Shiela if you’re interested in seeing the new farms we have to offer.

Sheldon

Ready for Summer?

Spring seeding in most of Manitoba is going at a very fast pace. Although not record early, it is certainly a relief after last year’s difficulties. Most of the cereals are seeded at the time of writing and in central Manitoba, producers are busy with beans, corn and other later seeded crops. Hopefully, we will not be hit by a late spring frost and we may be set up for an early harvest. Some pockets of Saskatchewan report problems with too much moisture with heavy rains and a high water table due to the excess moisture of 2011. Most of the rains in Manitoba have been near perfect and earlier drought concerns are gone for now. With the current high crop prices there is a lot at stake for producers as a good crop will almost certainly mean that there will be a profit to be made for most crops.

Livestock producers are indicating very good growth of their forage crops and most yards are easily accessible. What a difference a year makes! Let’s all hope that the favourable weather continues and enjoy the good conditions that have come our way.

This past winter has been a very busy one for our company. Due to the optimism in most farming sectors and the strong economy in Western Canada we had one of the busiest sales seasons in recent memory. The result of this is that we are a little short on listings. Should you consider selling your farm property this may be a good time to talk to one of us, we can probably find you a buyer at a very competitive price.

On our website, you will find from now on videos of all our listings. We plan to update this regularly and put new listings on as soon as we can get our camera man out to the farms. Especially for international clients, this will be a great improvement over the DVDs that you might have received in the last few years. Should you still be interested in a DVD, please let Shiela know and she will be happy to send you one. We always look forward to hearing from you either with comments on our website or any other issue that you want to pass on to us. We do try to keep our site updated and interesting with regular new content, so should you have some ideas for us, please let us know.

On behalf of Sheldon, Stacey, Junior and Shiela I wish you a good spring and all the best in your farming activities.

 

Dolf Feddes

Farms For Sale

The CFR team is concentrating a lot of their efforts on trying to find suitable farms for sale. We have numerous amounts of people looking for land and livestock farms alike. If anyone out there hears about someone wanting to sell their farm, don’t be afraid to let us know and we can help them out.

Spring?

It looks like we’re going to have a record early seeding year. It’ll be really interesting to see how the early spring affects our summer.  Hope we’ll have a long growing season with enough moisture levels. Hopefully this is to compensate us for all those years of extreme moisture.