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Winnipeg Free Press - PRINT EDITION

Ag Canada reports Good times ahead for Manitoba farmers

By: Staff Writer

Posted: 02/21/2012 1:00 AM | Comments: 0 (including replies)

MANITOBA farmers can look forward to good times over the next 10 years, according to government projections -- but a Keystone Agricultural Producers spokesman says that all depends on the weather.

On Monday, Agriculture Canada said in two reports that by almost any measure, average farm income set records in 2011.

However, not all Manitoba farmers reaped the benefits of high commodity prices for yields such as wheat or beef. Twenty-five per cent didn't grow a crop in 2011 because of bad weather.

"For those of us who grew a crop, we were able to sell it at some darn good prices," said Doug Chorney, president of KAP, a Manitoba farm lobby organization. "It's one of those rare times where most of our commodities are doing fairly well... but if you don't have any crop to sell it doesn't really mean anything to you, so it's a little frustrating for those producers."

For Canadian farmers, net cash income -- money available for everything from machinery replacement to living expenses -- is expected to total nearly $12 billion, according to the report. That's a 24 per cent increase over 2010 and a whopping 47 per cent increase over the five-year average.

The lucrative harvest came even after an eight per cent increase in operating expenses.

What's more, the horn of plenty included almost all agricultural sectors.

Grains and oilseeds farmers are expected to reap record net operating incomes 44 per cent higher than 2010. Incomes for hog producers should reach new highs, driven by rebounding prices that have sent market receipts soaring 20 per cent.

Dairy income should be up seven per cent over 2010. Poultry and egg producers expect an average 21 per cent increase. Potato farmers are looking at 20 per cent increases.

Only cattle producers faced a setback in 2011 because of rising costs. However, Agriculture Canada experts say that comes after several years of gradually rising incomes. Cattle prices are expected to keep improving and Canadian herds are gradually rebuilding.

Chorney said most Manitoba cattle producers fared well in 2011.

He said looking ahead, one of the biggest challenges for Manitoba farmers will be infrastructure and, of course, the unpredictable weather.

"We still have a lot of infrastructure challenges in the province where producers can't access their communities or get to their farmyards because of washed-out bridges, so there's a lot of local situations that have to be resolved first for us to have a successful year in 2012," he said.

The report said the conditions that led to a profitable 2011 are likely to stick around for a decade.

-- The Canadian Press, with files from Jenny Ford

Republished from the Winnipeg Free Press print edition February 21, 2012 A6

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