What Soybeans Mean For Saskatchewan

Everything could change again in the face of efforts to develop soybean varieties suited to Saskatchewan (SK). Even though they are mainly produced for vegetable oil and protein meal, soybeans are a pulse crop. As with field peas, soybeans are consumed in wide range of food products. Soybeans can be eaten fresh as edamame, while white hilum soybeans are processed to make a beverage called soymilk, or further processed to make tofu. Specific varieties of small soybeans are also used to make natto, a traditional fermented soybean dish eaten in Japan. These niche markets pay a premium, but they are unforgiving if there are any problems. The safest, easiest way to access the biggest market is to simply crush soybeans for their oil and meal.

Canada’s soybean industry got off the ground in Ontario and Quebec. It migrated to Manitoba in the 1980s, with farmers hoping to grow tofu and nattotype soybeans. StatsCan started estimating soybean production in Manitoba in 2001, by which time farmers had planted 50,000 acres. Land in the crop has grown steadily, hitting 800,000 acres last year for a 20% share of the Canadian crop, a tenfold increase in market share in eleven years.

Saskatchewan has been growing soybeans almost as long as Manitoba. Because area has been nominal, StatsCan has yet to begin estimating production for the province. Export trade data does not provide helpful clues about how many soybeans are being grown in Saskatchewan. StatsCan started recording Saskatchewan as an origin for export soybeans in January 2012. Between August and November, exporters reported 141,240 tonnes of soybeans originating in Saskatchewan, compared to just 98,621 tonnes for Manitoba. Given that no one involved with the crop believes more than 100,000 acres were planted in the province last year, it is obvious beans are moving from western Manitoba into Saskatchewan.

Soybean growers and processors in Saskatchewan are optimistic that as many as 250,000 acres of soybeans could be planted in the province this year. In time, it is hoped Saskatchewan will pass Manitoba to become Canada’s second largest soybean producer. Looking at the evolution of pulse production in Manitoba, the debate over the future of soybean has been simplified into soybeans versus peas, lentils, and chickpeas. The past decade’s rise in soybean and canola area in Manitoba came at the expense of several crops. Land in summerfallow dropped roughly 450,000 acres over the past decade, while wheat area fell 340,000 acres and barley declined 485,000 acres. Other pulses were affected, with the rise in soybeans contributing to a 100,000-acre drop in dry edible bean area and a 90,000-acre drop in peas.

Manitoba is not the only example of a place where are a lot of soybeans are being grown in competition with other pulses. This is also true of North Dakota, where farmers planted 4.75 million acres of soybeans last year, as well as 700,000 acres of dry edible beans and 235,000 acres of peas and lentils. Interestingly, the No. 1 crop for area in North Dakota is wheat, with farmers planting 7.84 million acres last year.

Interestingly, while land in pulses other than soybeans has been declining during the past decade in Manitoba, it has risen in North Dakota. This makes it clear that farmers are not choosing to grow soybeans or other pulses. They are planting what makes the most sense for their farm from an economic and agronomic standpoint.

The implication is that should soybean acreage grow as much as expected this year, it will not signal a decline in Saskatchewan’s pea or lentil industry. There is no doubt that lentil area should be down but this is because lentils are generating below-average returns per acre relative to other crops. On the other hand, there is good reason to believe land in peas could climb, because that crop is generating above-average returns relative to other crops. The same is true for wheat, which is also generating better than normal returns compared to other crops.

Pea and lentil consumers cannot afford to become complacent about the future of production in Saskatchewan. Wheat has become as much of a cash crop as canola or pulses, while at the same time, soybeans are poised to stop being an experiment and become a viable alternative for farmers in large parts of Saskatchewan. Initially, this will probably result in a continued decline in the amount of land being left summerfallow, which has already dropped by more than half to 3.2 million acres. However, more of this land will be brought into continuous production in the coming years.

Source: Saskpulse