What are the most profitable crops? The numbers may surprise you.
Let’s use the provincial average yields that Saskatchewan Agriculture is reporting. Prices have been gathered from a variety of sources for nearby delivery and are f.o.b. farm in central Saskatchewan.
First, the cereals. For spring wheat, Canada Western Red Spring is still the main class grown, and a protein content of 12.5 percent seems typical this year.
Prices of around $5.70 a bushel are reported for No. 1 and the provincial average yield is an amazing 46 bu. per acre. That generates a gross return of around $262 an acre.
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On durum, there’s lots of No. 1 around, but the typical protein is probably more like 12 percent. The price is around $5.65 for nearby delivery.
The provincial average yield is estimated at 44 bu. per acre. Gross return is slightly less than spring wheat at $249 an acre.
Oat yields are huge with the provincial average at 92 bu. per acre. Assuming a price of $2.60 a bu., that’s a gross of $239 an acre.
Barley returns are disappointing. The vast majority will be sold as feed, and the central Saskatchewan price is around $3.10 a bu. With an average yield of 69 bu. per acre, the gross return is only $214 an acre.
Although a minor acreage crop, canaryseed is another cereal option. An average yield of 1,300 pounds an acre is being reported.
The current price has dropped to around 23.5 cents a lb., but that still generates a gross return of $306 an acre. On top of this, canaryseed is less expensive to grow than other cereals, mainly because of lower fertilizer requirements.
When it comes to oilseed crops, canola is top of mind. The provincial average of 38 bu. per acre is by far the best ever.
Assuming a price of $10.30 a bu., the gross return is $391 an acre.
The average yield for flax is pegged at 27 bu. per acre, and a price of $12.50 a bu. is still available. That’s an average gross return of $338 an acre.
According to Saskatchewan Agriculture’s Crop Planning Guide 2013, the variable expenses to grow canola in the dark brown soil zone come to around $209 an acre compared to only $134 per acre to grow flax. That means flax is actually more profitable.
Mustard is even better. Averaging the current prices for yellow and brown mustard gives a value of about 35 cents a lb. On 1,300 lb. an acre, that’s a gross return of $455 an acre.
The cost of growing mustard is about the same as flax, which means that mustard eclipses both of the other oilseeds in net return.
It should be noted that weed control remains an issue in mustard. To get the top grades, there’s a low tolerance for canola seeds and inseparable weed seeds.
Pea and lentil returns are quite close in the pulse crops. Peas have an average yield of 43 bu. per acre with the current price for yellow peas at around $6.50 a bu. This gives a gross return of $280 an acre.
With lentil prices around 18.5 cents a lb., the average yield of 1,700 lb. an acre generates a gross of $315 an acre. Taking into account the somewhat higher production cost of lentils, they still end up with a marginally higher net return.
Note that the crops with the biggest yields do not have the highest net returns.
