Soybean acres in Manitoba are likely to be down slightly from last year as farmers look to tap better prices for canola and cereal grain, says the chair of the Manitoba Pulse Growers Association’s soybean committee.
“The general consensus is that we’re going to be down,” Andrew Saramaga said.
However, he also said estimates made early in the year of 180,000 to 200,000 acres may have to be revised upward by 50,0000 acres if fertilizer costs continue to soar and soybean prices also increase.
“We’re being cautiously optimistic that acres will go up, but we are not expecting to see the same amount of acres as we did last year,” said Saramaga, who farms near Hazelridge, Man.
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In the mid part of this decade, excess moisture disrupted the seeding plans of many farmers in Manitoba’s Red River valley. Last year was the first time they had good weather and they planted 360,000 acres of soybeans, up from 110,000 the previous year. Some had good yields, while others didn’t.
“For some people it was their first year and they found that their canola did just as good, if not better,” Saramaga said, adding more experienced growers are likely to put in as much as they have done in earlier years.
“We’re not expecting 400,000 acres in Manitoba this year because there are some good opportunities in corn and possibly with cereal grains as well.”
Old crop soybeans in the Red River valley are bringing about $7.10 a bushel, and as much as $7.75 to $8 for the new crop.
Many growers remember the $6 per bu. they were offered for their soybeans last fall as they came off the combine and fear being burned again, he added. In August and September, the price dipped about 50 cents per bu. from the spring level but then turned up in October, enjoying a sustained rally until late February.
Now the crop is starting to look more attractive, with strong soybean prices and nitrogen fertilizer selling for 50 to 55 cents per pound compared to 40 cents per lb. last year.
Soybeans fix their own nitrogen, while corn and canola are heavy nitrogen users.
“Total acres may even catch 250,000 acres with fertilizer prices the way they are,” Saramaga said.
Last year he planted slightly more than 800 acres to soybeans on his 3,200 acre farm. This year he is leaning toward reducing that to about 600, but said he may change his mind and go higher depending on target pricing.
Mike Baker, government and issues relations manager for the Ontario Soybean Growers, said seeded acres in Ontario and Quebec will likely be stagnant at 2.1 million and 482,000 to 530,000 acres, respectively.
He added that the price of nitrogen may have a big effect on the amount of acres that get planted come spring.
Old crop beans in Chicago were selling for $7.50 per bu. on March 16, with new crop at $7.90. Locally, old crop was fetching $7.70, but new crop had lately surged ahead at $8.35.
“There’s a positive basis for new crop locally,” he said. “We’ll have a better understanding when we get to around March 30, because that’s when the USDA publishes their planting intention reports.”
Last fall, prices for old and new crop were $6 to $6.50 per bu.
