Farming has two seasons: the growing season and the decision season.
The growing season effectively ends at freeze-up, at which time decision-making kicks into high gear.
Some decisions are a matter of habit or were determined during the course of growing and harvesting the crop. However, many wait until the mind is focused on the next planting season.
Crop choice is a big one. Will you adjust your cropping mix in an effort to increase returns?
Soybeans are popular in Manitoba, where overall yields were comparable to canola and net returns were superior. That wasn’t the experience in many parts of Saskatchewan and Alberta, but many producers would really like to make soybeans work on their farms.
Read Also
How counter-tariff policy cans Canadian choice
The unavailability of the storied Canadian pickle brand Bick’s, now processed and jarred in the U.S., shows how well-intentioned counter-tariff policy can turn sour on Canada’s consumers and cucumber growers.
Based on current prices, flax could be poised for another sizable acreage increase, but producers will be wondering how much production the market can handle before prices sag.
Durum decisions will be interesting to monitor. The huge price premium over other types of wheat screams for more durum. On the other hand, there were severe disease issues with the crop in many regions. As well, seed will be expensive. As with flax, producers will wonder if the strong prices are sustainable.
Seed testing labs are doing a brisk business, and the results will form the basis for many crop choice decisions.
For canola, a key decision will revolve around whether to switch to straight cutting. Varieties with improved pod shattering resistance are becoming available, and many producers were pleased with straight cutting this year. If the trend continues, there could be a lot of used swathers on the market.
Some producers have already bought a sizable portion of their fertilizer for next year, but many are sitting on the fence hoping prices will drop. Others want to finalize their cropping plans before deciding on fertilizer blends, and some need to free up bin space and/or generate cash flow before buying.
Producers are reminded every year that prices are typically cheaper in the fall and winter than in the spring. Producers are well aware of this normal price trend, but they aren’t as convinced about the threat of logistical problems if they don’t buy early. That is often dismissed as hype to drive sales.
Decisions also need to be made about land rental agreements.
There’s still fierce competition for land, despite softer prices for the major grains. If you offer a landlord a lower cash rent, do you risk losing that land to someone else?
More producers will be considering Global Ag Risk Solutions as a part of their risk management plan. The private revenue insurance company from Moose Jaw, Sask., insured 1.7 million acres this year and is gearing up for three to 3.5 million acres next year.
One would think that softer grain prices would increase premiums for a revenue insurance product, but company officials say coverage levels will increase and premiums will drop a bit because of their higher volume of business.
Whether a producer goes with Global Ag Risk will influence decisions on crop insurance coverage levels.
Better information is available to aid in decision making as a new growing season approaches. Unfortunately, waiting too long can mean missed opportunities. Seed for what you want to grow may be difficult to obtain. Crop contracts may be sold out. Fertilizer prices may have jumped.
Decision season is a major component of your growing season success or failure.
