Western Canadian farmers invest in variety development research

Feb 10, 2016

WGRF will work together with the Ministry of Agriculture

By Diego Flammini
Assistant Editor, North American Content
Farms.com

A multimillion dollar investment by the Western Grains Research Foundation (WGRF) will help fund Canadian wheat and barley development.

WGRF will invest more than $21 million over the next five years to support the Ministry of Agriculture’s western wheat and barley breeding programs until 2020 in Alberta, Manitoba and Saskatchewan.

Approximately $20 million will be used for wheat breeding research and $1.4 million to fund wheat breeding initiatives.

The investment is a result of farmer check-offs on wheat and barley and represents the largest industry investment into government agricultural research.

In a statement, Minister of Agriculture Lawrence MacAulay said it can take up to 13 years for a new variety to become available and WGRF’s investment will provide research facilities with the funding to continue working on new varieties.

The research will also investigate:

Potentially devastating wheat and barley diseases including Fusarium Head Blight
Enhancing insect resistance
Environmental stresses including drought and flooding
Developing genetic markers for plant breeding selection

Research from the University of Saskatchewan says farmers could expect a good return on investment. It states that for every check-off dollar invested into wheat and barley has returned $20.40 and $7.56 respectively.

“Check-off investments of over $90 million since 1994 have resulted in the development of 120 wheat and barley varieties,” Dr. Keith Degenhardt, Vice-Chair, WGRF said in a release. “Our new investment of $21.4 million provides stability to AAFC wheat and barley research until 2020 and ensures that AAFC (Agriculture and Agri-Food Canada) will continue to develop new varieties for many years to come."

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.