BRANDON, Man. (Staff) – Canadian farmers will plant 13 percent fewer acres of beans this year according to estimates from a trader at Cook’s, an Ontario-based bean exporting company.
Brad Ford told pulse growers he expects many farmers will shift production into cereals and coarse grains to cash in on high prices.
“It just doesn’t pencil out for the guy to be able to go to the bank and convince the banker to give him cash to grow a high-risk edible bean when he can have similar returns from something that doesn’t carry as much risk,” Ford said.
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Manitoba acreage will drop by almost four percent, Ford estimated, mainly because of fewer navy beans, black turtle beans and pintos. While 26,000 acres of navy beans were planted last year, he expects farmers to seed only 19,000 acres in 1996.
Ford predicted Alberta will increase its bean acreage by 5.5 percent this year. Most of the increase will come from high-priced great northern beans. Prices for old-crop northern beans are running higher than $45 per hundred weight, while new-crop prices are down around $28 per cwt.
Price determines variety
Manitoba farmers will also grow more great northerns, and dark red and white kidney beans because of strong prices.
Ford did not give estimates for Saskat-chewan because he said most production there is experimental.
U.S. farmers are also expected to plant about 13 percent fewer acres of beans, which some in the trade consider to be a significant decrease.
In 1996, Ford estimated U.S. navy bean acreage could drop by 17 percent to 409,000 acres. He said total Canadian and U.S. production would then be at seven million cwt., less than the normal demand of about 7.5 million cwt.
Because the 1995 crop produced about 9.6 million cwt. of navy beans, stocks are high. Despite this large carryover, Ford said prices have remained high because the trade is concerned about the reduction in planted acres. If one growing area has a weather scare or crop failure, Ford said prices could stay strong.
“I wouldn’t rule the navy bean crop out as being another year of $23 (per cwt.) prices.”
Wide price spread
Ford also pointed out the wide spread between new-crop great northern beans and navy bean prices. He said if the great northern crop looks like it will be of good quality, prices could slide to around $23 per cwt.
Pinto and black turtle beans will see lower prices and fewer acres planted because of large stocks, Ford said. Mexico has been a major importer of these beans, but was priced out of the market because of its devalued currency.
