I hope this message finds all of Saskatchewan’s wheat producers well and optimistic for a strong year ahead. After challenging conditions in the fall that caused some producers to complete their harvest in the spring, we could use a year of good weather and favourable market conditions.
The past few months have been difficult thanks to the COVID-19 pandemic. The crisis has created significant market uncertainty, although wheat has recently been moving from farm to export customers in near-record volumes. In Canada, many people who have been quarantining at home have taken to baking, driving up the domestic demand for flour. This will only have a limited impact on prices and will likely be short lived, while issues such as the Canadian dollar, global weather, and the oil dispute between Russia and Saudi Arabia will have a greater impact on prices in our export-dominated industry during the 2020-2021 crop year.
Locally, the pandemic has created a few extra steps for some producers during seeding, but overall, the impact has been minimal. There were concerns that securing supplies may be more difficult as farm supply dealers implemented safety measures, but from what I am hearing, the delivery of fertilizer, fuel, and other inputs has been similar to past years.
Over the past few months, the Sask Wheat Board of Directors has been working on several issues in addition to tending to our own farms. An issue that has taken significant time to discuss and understand, not only within Sask Wheat but also among the Prairie wheat commissions, is the amalgamation of the Canadian International Grains Institute (Cigi) and Cereals Canada.
The merger of Cigi and Cereals Canada is now official. Cigi will continue to operate as a division of Cereals Canada and will be delivering the same programs that will promote and enhance the use of Canadian wheat by global customers while Cereals Canada will continue its work on trade and regulatory issues. By working together, they will be able to strengthen the voice of Canadian wheat farmers and enhance the returns to Canadian wheat globally.
It is important that Saskatchewan, as the province that grows the largest share of wheat and durum in Canada, is represented adequately within the amalgamated organization. While governance details have yet to be finalized, we expect that Saskatchewan wheat producers will be represented proportionally and that issues of importance to Saskatchewan wheat producers will be prominent within the new organization.
Sask Wheat has also been spending a significant amount of time on a seed variety use agreement (SVUA) pilot program which the seed industry announced it would be pursuing in February. The pilot program will see a trailing royalty collection mechanism imposed on farm-saved seed of selected crop varieties through a contract agreement.
Sask Wheat wants to ensure producers’ rights, such as the right to use farm-saved seed, are being protected in any SVUA contracts and that producers clearly understand the impact of the contracts on their farms. We are especially concerned that the proposed trailing royalties could inhibit the adoption of new midge tolerant varieties, should they be included as part of the pilot, which would have negative implications for the Midge Tolerant Wheat program.
We will continue to work on these issues and others over the summer. Please remember to check out our FHB risk maps over the next few weeks and to scout your fields daily during the heading stage. We are hopeful that tools such as the FHB risk maps combined with the improved genetics of varieties that wheat producers have invested in will bring excellent yields and quality this year and in the future.
Source : saskwheat