Farmers planting Strongfield durum in 2006 will be able to deliver only one tonne per seeded acre under the Canadian Wheat Board’s identity preserved contracting program.
The board imposed the limit after discovering that much more Strongfield seed was produced in 2005 than had been expected.
Many farmers are unhappy about the delivery limit, and so is the board.
“It’s regrettable that circumstances have occurred so that we have had to make a decision to put the one tonne per acre limit on it, especially when we’ve acted in good faith throughout the process,” said CWB spokesperson Maureen Fitzhenry.
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She added the board received dozens of calls from farmers complaining about the delivery limit in the days following the mid-December announcement.
“It’s clear that farmers are concerned and it’s hard to blame them,” she said.
“They paid a premium for the seed and had certain expectations, so naturally they’re disappointed … but we simply can’t take it all.”
Strongfield is a high yielding, high protein, low cadmium variety that is expected to become the dominant durum in a few years.
In discussions in April 2005 with SeCan, the owner of Strongfield, the board initially indicated it would take 300,000 tonnes of the new variety for market development work.
As the 2005 growing season progressed and yields in the durum-growing region looked good, SeCan raised its production estimate and the board agreed to take 385,000 tonnes.
Then at the beginning of December, the board was informed that another 150,000 tonnes would likely be produced.
That’s more than the agency needed for its market development program, so in mid-December it sent a notice to the grain trade announcing the limit of one tonne per acre. That’s above the long-term average durum yield, although below likely Strongfield yields.
“We had to do it to ensure we weren’t inundated with the stuff,” said Fitzhenry, denying rumours that the board would eventually take it all under the contracting program.
Any tonnes contracted or delivered beyond 385,000 tonnes will not be eligible for the IP contract program benefits, including guaranteed acceptance and storage payments.
Farmers can sign up additional Strongfield acres to regular durum contracts, although they may be reluctant to do so without financial incentives, having paid $10 to $12 an acre for seed.
Dale Alderson, western marketing manager for SeCan, said growers and SeCan were as surprised as the wheat board at the amount of Strongfield produced in 2005.
“What happened was we had a great growing season and the variety kicked in with a great performance,” he said, with some growers reporting yields of 65 to 70 bushels an acre.
SeCan surveyed its growers throughout the season, he said, and tried to keep the board up to date on the burgeoning production, but even the growers were surprised once they started harvesting.
“Forty bu. was a failure,” he said.
Glenn Annand, a seed grower from Mossbank, Sask., said Strongfield’s performance in 2005 varied according to the land, with lentil stubble providing the best yields of 50 to 55 bu.
“There was a lot of variation among growers, but I’d say it was generally higher than we expected,” he said.
Alderson said farmers shouldn’t criticize the board for imposing the limit, but added that if 2006 turns out to be a poor production year, the board might be happy to have additional acres planted.
He said grain companies might want to consider setting up their own Strongfield IP contracts in case the board needs more than its contracted acres can produce.
Some growers might also like to sell their seed to the U.S., where interest in Strongfield is also high. However Alderson said SeCan won’t be approving exports any time soon.
“I think we could be in for a rough ride in this,” he said. “Some southern growers can literally see their neighbours across the border, but they need to understand (exports are) not in the best interest of durum growers and the CWB.”
Strongfield’s low cadmium content will make it popular among many foreign customers and it’s important Canadian growers have the first chance to benefit, he said.
