It doesn’t take a clairvoyant to predict farmers will switch from forage seed to more lucrative grain and oilseed crops this year, says the project manager with Peace River Seed Co-op.
“The grains and oilseeds are terribly attractive at this minute, and we don’t see too many acres of forage seeds going into the ground,” said Mills Anderson.
He believes the core group of producers who regularly grow brome, fescue and other grass seeds as part of their crop rotations will continue to grow them. However, farmers who have old stands or fields with minimal production will likely plow them under.
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“We do see a reduction in acres,” Anderson said.
While there are no clear numbers, a 2001 Statistics Canada report estimated farmers grow 340,000 acres of turf and forage seed in Alberta’s Peace region and 90,000 acres in British Columbia.
Anderson said the amount of seeded acres tends to follow prices. With grass seed prices low, farmers don’t see the crop as a viable option.
Fescue prices are about 50 cents a pound, which is considered a low price in the industry.
Dave Wuthrich with the Peace Region Forage Seed Association said he also anticipates acres will drop but doesn’t have a clear idea how many acres of grass seed will be left in production.
“We have no idea how many acres are in grass,” he said.
The northern B.C. farmer said he likes to keep one-third to half of his 5,000 acre farm in grass seed. Growing the crop allows him to harvest 5,000 acres with one combine. By the time the grass seed harvest is finished, the grain and oilseed crops are ready to harvest.
Wuthrich believes grass prices will rise with the reduction in creeping red fescue acres and fewer fescue imports from Denmark. He’s hoping creeping red fescue will hit 60 to 65 cents a pound this fall and maybe 75 cents a lb. by next year.
Grass seed prices have been pushed lower by a high Canadian dollar and the American subprime mortgage crisis. About 90 percent of Canada’s forage seed is exported to the United States for turf in homes and golf courses.
“If no one’s got money, they’re not going golfing,” he said.
