To be successful as a grass seed grower, farmers need to treat grass as
a serious crop, instead of an occasional gamble, say marketers.
“We encourage growers to have a continual plan for growing forage seed
crops, rather than going in and out of the market,” said John Doege,
managing director of Newfield Seeds in Nipawin, Sask.
“On a long-term basis, you’ll have your ups and downs but you’ll have a
crop in the ground when the prices are high.”
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There are many markets for grass seed, including large ones for alfalfa
seed and domestic and professional turf grass, and niche markets for
native species and other specific-use varieties.
Farmers who produce seed crops in co-operation with buyers and
marketers can do well, marketers said.
“Maintain a definite plan that keeps you in the rotation rather than
following or chasing the market, because (otherwise) you probably won’t
hit it,” said Doege.
Lloyd Dyck, president of Brett-Young Seeds, said it is not easy to grow
grass seed successfully. Both Dyck’s and Doege’s companies employ
agrologists to show farmers what to do.
Brett-Young Seeds has moved aggressively into turf grass markets,
supplying lawn, sports field and other urban grasses to mainly American
buyers.
Dyck said the Prairies have a competitive advantage in growing grass
seed. The major production region in the United States is in Oregon,
but farms there face urban pressure and will probably grow less in the
future.
Also, annual bluegrass, a weed that lawnkeepers despise, is a pest in
many U.S. areas, but it cannot survive Canadian winters, said Dyck.
That allows his company to give stronger guarantees about its purity
than other suppliers.
While Brett-Young contracts with more than 400 turf grass seed growers,
Dyck said it needs more to meet demand.
But some farmers are skeptical of the industry, after bad experiences
with other niche crops.
“They’re curious about it, but they remember other things they tried –
Jerusalem artichoke or whatever – and these things blew up in their
faces,” said Dyck.
“They’re worried this is the same kind of thing. But that’s not the way
that it is.”
Close work between producer and seller can minimize many market risks,
Dyck said.
Doege’s company deals with demand fluctuations by selling forage seed
around the world.
“It’s not like other crops where you can go in and hedge your
commodities and buy futures,” said Doege.
Recently it dealt with Argentina’s financial meltdown.
“We used to sell $2-$3 million US a year to Argentina,” said Doege.
“Last year we didn’t sell any because no one has any money.”
