www.OntarioGrainFarmer.ca Published by MARKET DEVELOPMENT OCTOBER 2023 More than a matter of taste AWARD-WINNING ONTARIO CORN FED BEEF PROGRAM
AHEAD For more information about NK soybeans, contact your retailer, your NK Territory Sales Representative, call our Customer Interaction Centreat 1-87-SYNGENTA (1-877-964-3682), or follow us on Twitter @NKSeedsCanada. Always read and follow label directions. NK®, NK® and Design, and the Syngenta logo are trademarks of a Syngenta Group Company. © 2023 Syngenta. When you plant NK® seeds, you’re planning for success. Take advantage of our consistent performance and field-proven agronomics developed over 50 years of testing. WITH TRAIT TECHNOLOGY AND GENETICS DESIGNED TO PERFORM, YOU’LL BE GLAD YOU DID. syngenta.ca/nk
OCTOBER 2023 volume 15, number 1 ONTARIO GRAIN FARMERis published 9 times a year (December/January, February, March, April/May, June/July, August, September, October, and November) through Grain Farmers of Ontario. Distribution is to all Ontario barley, corn, oat, soybean, and wheat farmer-members. Associate Membership Subscription available upon request. Views and opinions expressed in this magazine are those of the authors and do not necessarily represent the policies of Grain Farmers of Ontario. Seek professional advice before undertaking any recommendations or suggestions presented in this magazine. PUBLICATIONS MAIL AGREEMENT NO. 40065283. Return undeliverable items to Grain Farmers of Ontario, 679 Southgate Drive, Guelph, ON N1G 4S2. © Grain Farmers of Ontario all rights reserved. Publisher: Grain Farmers of Ontario, Phone: 1-800-265-0550, Website: www.gfo.ca; Managing Editor: Mary Feldskov; Production Co-ordinator: Kim Ratz; Advertising Sales: Joanne Tichborne 6 ON THE COVER More than a matter of taste Ontario Grain Farmer AWARD-WINNING ONTARIO CORN FED BEEF PROGRAM From the CEO’s desk RESILIENT AND OPTIMISTIC 4 Innovative funding, innovative projects Treena Hein 10 Tailoring grain exports to customers Matt McIntosh 12 Business side Conversations with business experts 9 GrainTALK newsletter An update on Grain Farmers of Ontario news and events 20 Sustainable finance on the farm Lisa Ashton 14 Crop side Agronomic information from crop specialists 16 Canada’s industrial biofuel strategy Dana Dickerson 18 On a mission Mary Feldskov 26 Assessing grain quality Ontario Grain Farmer 28 Passionate advocate recognized Lois Harris 30 Ontario grains by the numbers Connor McCulloch 32 Good in Every Grain Updates on our campaign 38 Domestic violence in rural Ontario Rachel Telford 36 BIODEGRADABLE POLY 22IN THIS ISSUE Grain Farmers of Ontario financial statements
challenges: Argentine farmers are in the midst of a significant drought, are facing inflation of over 100 per cent, and are experiencing devaluation of currency. Despite these challenges, I learned that Argentine farmers are resilient, hopeful, and optimistic, and are continually adapting and innovating to find ways to mitigate the impacts of the challenges they face. The IOPD, which brought together 15 member organizations from 11 countries, highlighted common issues including EU deforestation regulations, demand for biofuels, and new technologies including genetically modified and gene-edited crops. The IOPD serves as an important way for Grain Farmers of Ontario to learn more about the international oilseed markets and work internationally to advocate for government policy that will help Ontario farmers remain competitive in the global marketplace. Back at home, in September, despite the busy on-farm season, itwas great to see so many farmer-members at our Annual General Meeting, Canada’s Outdoor Farm Show, and the International Plowing Match. While our farmer-members are are harvesting corn and soybeans, our staff are busy in the office preparing for our January meetings and the annual March Classic, which will be here before we know it. As combines continue to roll across the province this October, I am both anxious and optimistic to learn what the final tally will be from the 2023 season. From an early season drought to record rainfall in the summer months, to disease, weed, and insect pressures, and ongoing impacts of inflation, rising interest rates, and fluctuating markets, Ontario’s farmers have had their own share of challenges in 2023. But like the Argentine farmers I met in August, Ontario farmers are also resilient, hopeful, and optimistic. As we wrap up the 2023 season and start to plan for 2024, Grain Farmers of Ontario will continue to help Ontario’s grain and oilseed industry grow and prosper. l 4 SOYBEAN HARVEST NEAR BALCARCE, BUENOS AIRES PROVINCE, ARGENTINA. IN AUGUST, GRAIN Farmers of Ontario’s chair, Brendan Byrne, and I joined colleagues from the Canadian Canola Growers at the 25th International Oilseed Producers Dialogue (IOPD). This year, the event was held in Argentina in conjunction with the Aapresid Congress — an event held annually by La Asociación Argentina de Productores en Siembra Directa (Argentina’s NoTill Farmers Association). We also had the opportunity to tour local farms, the Rosario Board of Trade, the Rosario port and crush plant, the National University of Rosario agriculture program, and learned more about BioCeres, a biotech company developing a GM wheat variety. Traveling to other grain- and oilseed producing countries to meet farmers and international colleagues is always interesting and informative experience, giving me an opportunity to see firsthand how farmers and the agriculture industry are working to meet the growing demand for grains and oilseeds and to learn about how they are dealing with worldwide issues like inflation, climate change, and supply chain disruptions. Agriculture is a major economic driver in Argentina, accounting for 17 per cent of the country’s GDP and providing employment for one in every five Argentinians — and it is the third largest net food exporter in the world. But they are not without their From the CEO’s desk Crosby Devitt, CEO, Grain Farmers of Ontario Resilient and optimistic
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Cover story 6 RECOGNITION IS NICE; being recognized five times on an international level is incomparable. Last June, the Ontario Corn Fed Beef Program received its fifth 3-Star Superior Taste Award for the quality of the beef it produces. The award program carries a tremendous amount of cachet, given its representation by members from prestigious culinary institutions in Europe. The Ontario Corn Fed Beef Program (OCFB) received a grade of 90 per cent, exceeding the 70 per cent mark required for a Superior Taste Award of one, two, or three golden stars. It is also a testament to the brand loyalty of the Ontario Corn Fed Beef Program and the collaborative efforts of the Beef Farmers of Ontario, the Ontario Cattle Feeders’ Association, and Grain Farmers of Ontario. In 2001, beef producers and cattle feeders launched the highly successful, highly respected approach of feeding high-quality grains and forages as part of a balanced diet and ensuring they are fed to top-quality cattle. Twenty-two years later, the Ontario Corn Fed Beef Program is equally valued by consumers here at home and is a matter of pride among members of the organizations involved in its production and marketing. “The Ontario Corn Fed Beef Program is the flagship brand of the Ontario Cattle Feeders’ Association (OCFA),” says John Baker, director of brand management and business development of OCFB. “The brand has been the pride of the OCFA and its members since its inception.” Beef producers, he adds, have a passion for what they do and represent to their peers, their local community and agriculture as an industry. The program represents a farm quality assurance system designed to show how cattle have been produced with a specific set of guidelines that is a benefit to consumers. “The ultimate goal of the OCFB Quality Assurance Program is to produce a naturally great-tasting product that’s consistently tender and juicy,” says Baker. “Over time, the brand has become recognized as a premium product in the marketplace.” It is well-known in agriculture that consumers want to know more about who produces their food and the processes involved. The Ontario Corn Fed Beef brand offers a story and an opportunity for transparency in cattle production and provides a platform for creating additional value for producers across the province and Canada. It is also an approved certifying body for the Canadian Roundtable for Sustainable Beef and has enabled producers to qualify for financial credits earned through the program. Those credits are shared by producers in all sectors of cattle production. ALL THAT CORN Increasing the usage and value of Ontario grains through market diversification and promotion is a strategic objective of Grain Farmers of Ontario. Dana Dickerson, market development manager with the organization, calls the Ontario Corn Fed Beef Program a vital enabler of that objective where it relates to corn. “Corn is our largest volume grain crop, and in 2022, Ontario produced just under 9.5 million tonnes of corn,” she says. “According to our 2020 grain utilization study, just over one-tenth of the province’s corn is used as feed in beef production, making it a significant market category.” Additionally, a little more than a third of Ontario’s corn crop is used for ethanol production. For every bushel of corn used in ethanol distillation, roughly 15 pounds of dried distillers’ grain and a little less than a pound of distillers’ oil are left over after processing. These co-products are fed to cattle as a high-nutrient animal feed, maximizing the potential value-added opportunities for grain. Given the size of the beef market for Ontario corn, it is significant to Grain Farmers of Ontario that the Ontario Cattle Feeder’s Association has a program that aims to drive market share by celebrating the contributions of Ontario-grown corn in Ontario-fed cattle. More than a matter of taste AWARD-WINNING ONTARIO CORN FED BEEF PROGRAM Ontario Grain Farmer continued on page 8 • The Ontario Corn Fed Beef Program received (OCFB) its fifth 3-star Superior Taste Award for the quality of the beef it produces. • Introduced in 2001, the OCFB program focuses on feeding high-quality grains and forages to top-quality cattle. • The program represents a farm quality assurance system to show how cattle have been produced. • Corn is Ontario's largest crop by volume, and a little more than 10 per cent is used in beef production. • Increasing the usage and value of Ontario grains through market diversification and promotion is a strategic objective of Grain Farmers of Ontario. WHAT YOU NEED TO KNOW
ONTARIO GRAIN FARMER 7 OCTOBER 2023
8 from Middlesex County and a board member of the OCFA for the past 12 years, he has been certified with the Ontario Corn Fed Beef program since its inception in 2001. He is also certified by the Canadian Roundtable for Sustainable Beef. “The OCFB program provides us with recognition around the quality of the cattle we produce,” says Conlin, a fourth-generation producer with two sons who are also involved in the family farm. “The packers recognize the consistent quality that the OCFB program provides.” He speaks glowingly of the impact of the Superior Taste Award, noting the loyalty of the Corn Fed Beef program’s customers, including tours from Japan that his family has hosted. The OCFB program affords transparency on how producers raise their cattle, which in turn has tremendous value for those customers. “We’ve had Ontario Corn Fed Beef retail customers from Japan tour our operation and later sit in our kitchen and meet with our family,” says Conlin. “They tell us how much they appreciate the Ontario Corn Fed Beef program and how their customers love the taste and consistent quality of our beef.” He encourages producers to join the OCFB program; the audit process does not require a lot of extra time or effort, and most of it is based on best practices already in place. l continued from page 6 “Distinguishing Ontario corn-fed beef as a high quality, premium product supports market retention and has helped develop new market opportunities for both our organizations,” says Dickerson. “This program is reflective of the integration, collaboration, and circularity of the Ontario agriculture sector. Grain Farmers of Ontario is just as proud to champion the merits of Ontario Corn Fed Beef as Ontario Cattle feeders are to champion the merits of Ontario corn.” CHARTER MEMBER That kind of intra-industry recognition is important, and Mike Conlin understands and appreciates all that the OCFB represents, from corn production to cattle feed to processing the finished product. A producer
9 (J.M.) WHY IS A FARM FINANCIAL CHECKUP IMPORTANT? (K.M.) Winter and tax season are common times when grain farmers conduct a farm financial checkup. And while that makes sense to do on an annual basis, reviewing farm finances in the fall can help ensure informed decisions are being made regarding prepaying or locking in inputs, managing cash flow, forward contracting, and renewing mortgages or debt. A financial checkup is also an opportunity to benchmark, measure success, and incorporate the information collected into short- and long-term planning, risk management, and succession plans. Overall, understanding your farm’s financial position at any given point will put you in a better position to make key decisions for the future of your farm. A checkup may be as simple as confirming you are on track with your cash flow and financial obligations, or it can be an in-depth exercise to evaluate your farm’s overall growth strategy. Either way, keeping tabs on your farm’s financial health is essential, especially as farmers begin to purchase inputs and plan for next year’s crop. WHAT CAN FINANCIAL RECORDS TELL US? Start with basic financial records like income and cash flow statements, projections, balance sheets, and budgets. These are your farm’s financial tools. Review each record in detail, breaking them down to analyze cost of production and economies of scale. This information will help you understand the implications of any decision being considered, like purchasing equipment, hiring an extra employee at harvest, or expanding grain storage. For those who manage their finances on a calendar basis, understanding this information as you approach your year-end wrap-up can also help with tax planning. Analyzing financial records is not everyone’s idea of fun. But the insights from the task can pay off. Crunching financial ratios and reviewing numbers can help you understand the implications of fluctuating input costs, especially when comparing numbers from previous years. For example, understanding your cash flow and debt financing situation can help you evaluate opportunities that arise, like bulk discounts or buying the neighbour’s farm. And in our current economic environment, with high input costs and rising interest rates, it is important to understand how risks outside your control will affect your farm business, ability to service debt and bottom line. If you are confused, unsure where to start, or short on time, reach out to a trusted farm advisor for help with your financial checkup. Accountants and lenders can help review records, offer insights and recommendations, and work with you to develop options or a plan you are comfortable with. Advisors can also act as sounding boards for ideas and plans. ANY ADVICE ON MANAGING DEBT? Given today’s economic climate, managing debt levels and repayment plans is essential. Knowing where you stand financially will help you make decisions about debt and debt servicing capabilities. Prolonging asset purchases and careful cash flow management are strategies that can help free up cash and pay off debts faster. With rising interest rates, it is more important than ever to be prudent and not overextend yourself and your farm. Carefully evaluate the implications of taking on more debt by understanding your cost of production and cash flow. Maintain a strong liquidity ratio and understand what makes financial sense for your farm — today and in the future. WHERE CAN FARMERS GO TO LEARN MORE ABOUT EVALUATING THEIR FINANCES? Reaching out to a trusted farm financial advisor can be the most efficient way to conduct a farm financial checkup, especially if you are evaluating a timely business opportunity or large purchase. Keeping up to speed on the price of upcoming purchases, like inputs or mortgage renewal rates, is also important for evaluating numbers and making decisions. Farm Management Canada (fmc-gac.com) offers a variety of resources. If you are looking totake your financial checkup to the next level, consider the University of Guelph Foundations in Agricultural Management (www.guelphagriculturalmanagement.com) online program that includes two modules on financial literacy. Enrollment is free, and farmers can learn at their own pace. l Jeanine Moyer Ken McEwan, College Research Professor, University of Guelph Ridgetown Campus & University of Guelph Foundations in Agricultural Management Instructor Fall financial checkup BUSINESS SIDE WITH... Business side ONTARIO GRAIN FARMER 9 OCTOBER 2023
10 RECOGNITION AND SUPPORT for pioneering new products made from Ontario grains — that is the purpose of Grain Farmers of Ontario's Grains Innovation Fund. It is now going strong into its 15th year. "The Fund supports projects that open new markets for Ontario grains, expand their use and demand, promote them as the best choice for consumers and/or the food value chain, or increase their value through new, value-added uses," explains Hayley Micallef, market development coordinator at Grain Farmers of Ontario. "Of course, these projects can accomplish more than one of these aims, and we hope they do." This year, to better support the development of new and reformulated products and processes that involve Ontario grains, the total yearly amount for the Fund has been increased. "The annual total has been boosted from $150,000 to $250,000, and projects can each receive up to 60 per cent of the cost of the project, up to a maximum of $75,000," says Micallef. "Grain Farmers of Ontario leadership made the decision to boost these amounts to address inflation and also to attract more applicants." Past projects, as one might imagine, are very diverse. They have included identifying and commercializing new product applications for by-products from tofu production, marketing an Ontario wheat-based pelletized straw for animal bedding/garden use, and promoting Ontario corn-fed beef to the Japanese market. Other projects have involved transforming bran by-products from milling wheat into cat litter and developing and marketing an innovative new soybean-based tempeh. GRIFFITH FOODS A past Grains Innovation Fund support recipient is Toronto-based, family-owned Griffith Foods. This company collaborates internationally with ingredient suppliers and food companies to create new and innovative products. Its 'Feed to Food' Project aimed to increase the nutritional and functional properties of its bakery products while increasing the value of sprouted wheat, which typically goes into livestock feed. However, wheat that is downgraded due to excessive field sprouting still has high enzymatic activity and is very nutritious — and as Griffith Foods has proven with its technologies, it can be used in a wide range of baked goods with improved characteristics. Conventional sprouted wheat flour is expensive. It is made by sprouting wheat after harvest in a controlled manner using specialized technologies. With support from the Grains Innovation Fund, Griffith Foods has developed technology and processes that make flour from low-cost field-sprouted wheat. Its flour partly serves as a replacement for chemical dough conditioners required during the baking process, positively affecting dough rheology and baking performance through enhanced enzymatic activity. With this project complete, Griffith Foods will be further exploring the potential to use field sprouted wheat flour to its advantage in the development of new products. In the future this could open up opportunities for farmers to receive better prices for field sprouted wheat. Innovative funding, innovative projects GRAINS INNOVATION FUND CONTINUES TO GROW Treena Hein "We will deliver products with cleaner labels, which means less synthetic and more natural ingredients," says a Griffith Food spokesperson, "and also more nutritious product lines to the market. The use of sprouted wheat in dough formulations can increase bioactive compounds, for example, phenolic antioxidants, and improve digestibility and nutrient absorption." PRISUM COATINGS CANADA The Grains Innovation Fund has also recently lent support to the accelerated completion of a project by Prisum Coatings Canada relating to the manufacture of its road marking coatings. The company, based in Holland Landing, needed to speed up its soybean oil resin binder production. This required figuring out how to scale up the firm's current manufacturing method and overall production system. Made entirely from plant-based and mineralbased ingredients, Prisum's water-solvent and sustainable products contain no petroleum-based components, volatile organic compounds, or allergens. President Richard McSorley describes the company's exclusive Canadian road coating technology as a "unique innovation" without the "pollution and microplastics content" that conventional historic products contain. Soybean oil makes up 20-30 per cent of all the company's commercialized coating products. One gallon of Prisum's gloss paint contains the oil of 20,000 soybeans. Another of its products, BioMarker, is the world's first plant-based marking paint for road traffic lines to have been approved by a government transportation agency (in this case, Ontario's Ministry of Transport). Prisum has also launched a water-solvent, biodegradable soybean oil-based nail polish in the beauty market called Nature's Nails. Market Development
McSorley and his team are proud to source high-quality raw materials from Canadian farmers, a collaboration that enables Prisum to produce award-winning, professional, plant-based products that are set to replace the unsustainable plastic coatings currently prevalent globally. He notes that while the coatings industry has been under strict regulations since 2010, many conventional petroleum-based products still contribute to significant pollution levels. He reports that annually, these products release 230 million tons of greenhouse gases and 58 million tons of microplastics into the environment. "The 2023 Grains Innovation Fund support has been instrumental in propelling Prisum Coatings' vision," says McSorley. "This investment has accelerated projects focused on soya resin binder production and also the exploration of new biomaterials. It's a symbiotic relationship. As Prisum grows, so does the demand for high-quality raw materials, ensuring Canadian farmers have a consistent and expanding market." ACCESSING THE FUND Applications to the 2023 Grains Innovation Fund must be submitted by email to hmicallef@gfo.ca by 4 p.m. on November 3, 2023. Interested individuals can also watch an informational webinar and learn more about how to apply at gfo.ca/market-development. l ONTARIO GRAIN FARMER 11 OCTOBER 2023 This article features a Grain Farmers of Ontario Market Development Fund project.
12 AS SOLLIO LETSgo of its grain handling facilities in Southwestern Ontario, grain handler DG Global Inc. hopes the acquisition of the facilities will help meet demand for smaller, more customized grain markets. Sollio — one of Canada’s largest agricultural co-operatives — announced plans in 2022 to sell its six grain handling facilities in the region to focus on its agricultural input business. The facilities include the Shetland Road elevator at Florence, the Talbotville elevator at St. Thomas, the Becher elevator at Wallaceburg, the former Palmerston Grain elevator at Palmerston, and the elevators at Princeton and Staples. The company Tailoring grain exports to customers DG GLOBAL INC. ACQUIRES SOLLIO ELEVATORS Matt McIntosh DG GLOBAL, STAPLES, ONTARIO. PHOTO COURTESY OF MATT MCINTOSH. maintained operations at the facilities during the 2022 harvest season, albeit at reduced capacity. It also stated it intended to honour all existing contracts and fulfill all business obligations. An agreement of sale of the six elevators was announced on March 24, 2023, between Sollio's Ontario Grain LP., DG Global, and Market Development
Belmore-area elevator operator Rolling Acres Grain Ltd. Talks to finalize the the sale followed, with the formal agreement to purchase signed in June 2023. The Palmerston elevator was acquired by Rolling Acres, with DG Global taking over operations of the other five locations. Dwight Gerling, Chief Executive Officer and Owner of DG Global stated in a press release from June 2023 that he would “like to personally reassure existing customers that all five elevators will continue to operate as they normally do as we transition this business behind the scenes.” Most of the existing staff, he says, chose to continue working at each location, adding he expects no interruptions in elevator operations during the ownership transition. HOPES OF INCREASED EXPORT OPPORTUNITIES Dana Dickerson and Hayley Micallef — Grain Farmers of Ontario’s market development and sustainability manager and market development coordinator, respectively — say the organization is pleased the new elevator owners will continue supporting Grain Farmers of Ontario’s crop assessment efforts. “For us, these elevators were ones that supported insights into wheat quality. They were sites that offered a good representation of regional production,” says Micallef. However, both Micallef and Dickerson add the bigger story will be DG Global’s capacity in the “specialized container business.” “There could be potential for looking at containerized businesses for crops outside [Identity Preserved] soybeans,” Dickerson says. "Given DG Global trade containers into such a range of global markets, it could provide new options for other crops." Gerling reiterated, in an August 2023 interview, that finding and developing new markets in a variety of crops is indeed what DG Global is aiming to do. While many companies focus on bulk shipments of tens of thousands of tons of grain with homogeneous characteristics, his company’s focus on container-level shipping provides significant flexibility. “Buying these [elevator] facilities gives us one more toolkit. We understand our customers overseas, but everyone has a different use or need or how they want it packaged. We have the ability to control and put that in a container and expand markets and volumes to different countries,” says Gerling, citing wheat with specific protein or moisture levelsas examples. “We’re doing smaller lots. We might do 50,000 tons, but it might be over six months and allows us to segregate different stuff.” KEY AREAS OF INTEREST Southeast Asia has long been a major destination for Canadian grain, particularly food-grade soybeans. Gerling says the region is increasingly an opportunity for products featuring more specific characteristics. Africa offers another option, as does Europe, where bulk product has dominated. “It’s not new customer areas per se, but there may be customers who didn’t buy bulk as it didn’t meet the specifications they wanted,” he says. “In Africa, the population is strong and growing. Same with Southeast Asia. Between those two areas, there’s very strong population growth. Especially in Asia, the populations are getting more affluent and want better quality food that maybe bulk doesn’t quite fit as well.” l ONTARIO GRAIN FARMER 13 OCTOBER 2023 The bigger story will be DG Global’s capacity in the “specialized container business.” Purchasing the sixth Sollio elevator in Palmerston, Ontario, is Rolling Acres Grain Ltd., a Belmore, Ontario-based company. Rolling Acres 1892 Ltd. offers custom agricultural services in addition to its grain handling facilities. The addition of a second facility in Palmerston gives the company the opportunity to expand its services and support farmers in the area. “The Palmerston grain elevator will be a tremendous addition to our operations in the region, where we have been servicing and helping farmers succeed since 2008,” said Evan Renwick, vice president, Rolling Acres Grain., in a March 2023 news release. “As we grow to meet local demands, we look forward to building new relationships in Palmerston and the surrounding area." The Palmerston elevator was originally owned by the McLaughlin Family and was sold to Southwest Ag Partners in 2014. Sollio subsequently acquired the facility in 2018, operating until its sale to Rolling Acres Grain Ltd. in 2023. ROLLING ACRES
14 INDUSTRY CAN HAVEpositive and negative impacts on the environment and society. Accounting for these impacts and companies' actions to demonstrate progress is of increasing interest among investors and financial institutions. For many involved in Canadian agriculture production, sustainable finance has been a background driver of some programs supporting sustainable practices but has yet to appear in the limelight. However, this may change with emerging standards and guidance for companies reporting on their value chain's sustainability impacts and an increasing number of sustainable finance products, services, and programs available to Canadian farmers and agri-food businesses. WHAT IS SUSTAINABLE FINANCE? Sustainable finance refers to financial activities that consider environmental, social, and governance (ESG) indicators to promote sustainable economic growth and the longterm stability of the financial system. For example, when considering sustainability in financial and investment decisions, economic indicators such as monetary value and projected growth are, of course, essential and primary factors, but an investment firm, company, or even an individual may also base their decisions on the climate impacts of a company's operation or how a company treats their workforce. According to PwC, RBC, and others, key indicators in sustainability reporting include but are not limited to: Environment: carbon emissions, water consumption, land use, energy consumption, waste disposal. Social: health and safety, gender and diversity, community, data privacy and security. Governance: board structure, executive compensation, shareholder rights, partnerships, transparency and reporting. Sustainable finance on the farm INVESTMENT DECISIONS USING ESG PRINCIPLES Lisa Ashton A SELECTION OF INDICATORS USED IN CORPORATE SUSTAINABILITY REPORTING, ACCORDING TO PWC, RBC, AND OTHERS. Companies, financial institutions, and other organizations use sustainability reporting standards, including those developed by the Global Reporting Initiative. Sustainability reporting standards and frameworks allow for consistency and comparability among companies' sustainability rankings and ratings, which are important tools to inform sustainable investment and lending decisions. According to a 2022 report by KPMG, 91 per cent of Canada's top 200 revenue-generating companies report on their ESG performance. WHY DOES SUSTAINABLE FINANCE MATTER TO THE AGRICULTURE SECTOR? Sustainable finance includes a diverse range of important indicators; however, there is currently a strong focus on measuring, reporting, and verifying a company's performance in reducing greenhouse gas emissions from their operations, energy use, and value chains. Market Development
To better understand how climate is factored into investment and lending decisions in agriculture, Deloitte and the Environmental Defense Fund conducted a survey. These results (chart to the right) suggest that financial institutions focused on agriculture are concerned about climate change's impacts, yet only some are currently factoring climate change risks and opportunities into their decision-making. A key barrier to factoring climate change indicators into investment and lending decisions is a lack of agricultural practice, production, and environmental data. This data is needed to inform measurements and estimates of greenhouse gas emissions from agricultural production. Recently established and pending regulations that provide standards for companies to report on greenhouse gas emissions may be a key driver for addressing this barrier. These regulations include the U.S. Securities and Exchange Commission's proposed rules to enhance and standardize climate-related disclosures for investors. The rise in standardization of corporate sustainability reporting is in response to investor demand for greater transparency and consistency. For example, there are approximately 5,300 investors who manage more than USD $121.3 trillion that are signatories to the United Nation's Principles for Responsible Investment, which outline actions for incorporating ESG issues into investments. The increasing interest in sustainable finance can interact with the agriculture sector in several ways. One potential implication is the expanding interest in data from agri-food value chains. As organizations work to understand and improve ESG performance in their value chains, they may seek out data from suppliers. For example, a food company may want to understand better the carbon intensity of the production of raw ingredients they use in their products. This data could contribute to establishing a baseline to track progress and help the company identify opportunities to support practice adoption, such as nutrient stewardship to reduce the carbon intensity of production over time. According to a 2022 report by Ernst & Young, digital tools, central data platforms, and value chain collaboration are promising approaches to meet sustainability data demands. Another way sustainable finance can impact the agriculture sector is by increasing the availability and options of financial products and services that support or reward farmers and agri-food businesses in their efforts to improve sustainability in agriculture continuously. Many of these financial mechanisms provide incentives such as discounts on premium rates to farms and other agricultural businesses on their investments and loans for maintaining or adopting sustainable practices and technologies. EXAMPLES OF SUSTAINABLE FINANCE Sustainable financing programs, products, and services in agriculture may look different depending on many factors, including the sustainability goals of the organization, its partners, stakeholders, and clients, as well as their level of interest and expertise in sustainable financing. A financial institution's engagement in sustainable finance in agriculture can stem from its broader investments in sustainability that the agriculture-specific initiatives fall under. For example, in 2021, BMO committed tomobilizing $300 billion by 2025 in sustainable finance. In Spring 2023, BMO announced Greener Futures Financing, which includes a sustainable finance program for new and current agriculture business banking clients. These clients are potentially eligible for a discount of up to one per cent on new loans for investments in reducing emissions or implementing climate resilience measures, such as improving on-farm energy efficiency. Sustainable finance products and programs can also be driven through partnerships, as observed through Farm Credit Canada's Sustainability Incentive Program, which provides payments to farmers that meet their partners' sustainability requirements. Finally, Rabobank, a global financial institution with expertise in agriculture and sustainable finance products, offers green and sustainability-linked loans, which they note are growing in demand. Sustainable finance is fast evolving, and its impact on the agriculture sector is becoming more tangible. At this stage, it is difficult to determine all the implications for farmers, as many standards and regulations are pending, and companies and value chains are developing approaches to improve their ability to track ESG performance. Lisa Ashton is the sustainability and environment lead at Grain Farmers of Ontario. l ONTARIO GRAIN FARMER 15 OCTOBER 2023 Sustainable finance refers to financial activities that consider environmental, social, and governance (ESG) indicators to promote sustainable economic growth and the long-term stability of the financial system. FINANCIAL INSTITUTIONS SURVEYED 167 87% see climate change as a material risk to their business. OF AGRICULTURAL LENDERS 24% significantly factor climate change into their decision making processes. OF SURVEYED FINANCIAL INSTITUTIONS 66% have or plan to have climate change goals for agriculture. OF RESPONDENTS 31% somewhat factor climate change into their decisions. OF SURVEYED FINANCIAL INSTITUTIONS
Horst Bohner, Soybean Specialist, Ontario Ministry of Agriculture, Food and Rural Affairs White mould control CROP SIDE WITH... Crop side PHOTOS COURTESY OF HORST BOHNER. 16 AN OLD SAYINGgoes, “A little white mould is the sign of a good crop.” This makes perfect sense because white mould flourishes under moist summer conditions. Adequate rain in July and especially August also leads to lush soybean growth, leading to high yields. However, a small amount of white mould can quickly increase to a devastating outbreak under the right conditions for the disease. Take note of which fields had white mould pressure this year to manage the disease in the future. White mould survives in the soil in overwintering bodies called sclerotia. They are roughly the same size as soybean seed (see bottom photo). It is well understood that white mould thrives under cool, wet conditions. That’s why lowering plant populations and increasing row widths can be important strategies to dry out the canopy to reduce white mould pressure. If plants lodge, the field is particularly susceptible to white mould. Careful variety selection and two passes of a foliar fungicide will go a long way to help manage the disease. Another factor that seems to have been largely forgotten over the last few years is that tillage leads to more white mould compared to no-till. In fact, the initial widespread adoption of notill soybeans was partly due to the observed reduction in white mould pressure in no-till systems. In no-till, the sclerotia are left on the soil surface to die. No-till does not eliminate the problem, but it can help reduce the disease. l A SMALL PATCH OF WHITE MOULD IN THE CENTER OF THE PICTURE HAD LITTLE YIELD IMPACT ON THE FIELD AVERAGE. THIS FIELD AVERAGED 58 BU/AC. THE BLACK SCLEROTIA IN THE MIDDLE OF THE PICTURE MAY CAUSE DOWNGRADING OF THE HARVESTED SEED IF THEY ARE FOUND IN LARGE QUANTITIES.
Meet the next generation of Canadian agri-food leaders These exceptional students are the winners of the 2023 CABEF Scholarships. We are proud to support each of them with $2,500 for their ag-related post-secondary education. Help us empower more students to pursue diverse careers in agri-food. Strengthen the future of Canadian agriculture and food by investing in the cream of the crop. Become a Champion of CABEF and directly support a scholarship for a Canadian student. CABEF is a registered charity (#828593731RR0001). For more information on all registered charities in Canada under the Income Tax Act, please visit Canada Revenue Agency www.cra-arc.gc.ca/charities. Sarah MacDonald Vanderhoof, BC Erin Hughes Longview, AB Wyatt Pavloff, Perdue, SK Milan Lukes Winnipeg, MB Kyla Lewis Dorchester, ON Matthew Bishop Round Hill, NS Contact CABEF today to learn how you can become a “Champion of CABEF” at info@cabef.org Congratulations to this year’s CABEF scholarship recipients. @CABEFscholarship cabef.org
18 ONTARIO IS HOMEto bountiful and sustainable biofuel feedstocks with an established legacy and strong prospects for biofuel production. In 2022, corn and soybeans were Canada’s third and fifth largest field crops, respectively. Ontario farmers led over 60 per cent of Canada’s production of these crops, growing nearly 10 million metric tonnes of corn and four million metric tonnes of soybeans. Ontario corn has played a significant role in first-generation Canadian biofuel production, and Ontario grain farmers have actively collaborated with industry and government to build the Ontario ethanol market. Ethanol provides critical market diversification for Ontario agriculture, giving use to downgraded crops, and it supports a circular economy, with one-third of the grain going back into animal feed as dried distiller’s grains and oils. Ontario’s six ethanol plants use local corn as a feedstock, collectively making up over a third of Ontario’s corn end-use market. However, with half of Canada’s ethanol currently being imported, a proportion of our grain currently being exported, and nextgeneration demand opportunities crystalizing globally, there is scope for greater onshoring of value-added biofuel production. PROSPECTS FOR BIOFUELS IN CANADA Grain Farmers of Ontario’s Strategic Plan has a market development objective explicitly focused on ensuring the viability of the biofuels and bio-products industries as a market for our grains. Over the last few years, the focus has been on Canada’s Clean Fuel Regulations, which incentivize fuel producers to purchase liquid biofuels through a crediting system to reduce emissions from the fuel supply. Grain Farmers of Ontario has worked to ensure these regulations work for farmers and create value for the sector without adding undue complexity or administration and has also advocated for Ontario’s E15 mandate, which is due to be transitioned into force by 2030. Another policy change set for the 2030s is Canada’s proposed regulated sales target for zero-emission vehicles. This policy creates uncertainty for the ethanol sector and corn farmers." create uncertainty for the ethanol sector and corn farmers. It also provides significant uncertainty for future consumer equity and affordability when it comes to transportationoptions. Grain Farmers of Ontario has encouraged the government to pursue strategies that allow for technologyagnostic decarbonization of transportation so that all potential pathways, including corn ethanol, can continue to contribute while creating value for farmers. Grain Farmers of Ontario has continuously advocated that Ontario corn ethanol is a proven, immediate, clean, affordable, and accessible biofuel that supports the decarbonization of the Canada’s industrial biofuel strategy ONTARIO’S CROP-BASED CLEAN FUEL POTENTIAL Dana Dickerson transportsector while ensuring energy security, affordability, and equity for Canadians. Despite this uncertainty, there is reason to remain bullish on Ontario corn ethanol, which, despite being associated with lightduty transportation, has diverse applications. Last year, Kawartha Ethanol invested $37 million into an expansion to produce highquality alcohol, including grain-neutral spirits, in addition to fuel ethanol. In August 2023, Greenfield Global announced a new purposebuilt warehouse in the Greater Toronto Area to help them meet escalating demands for high-purity solvents and alcohols for the pharmaceutical, food and beverage, and industrial product industries In September, they completed a 30 million gallon alcohol upgrade at their Johnston distillery. And when it comes to fuel ethanol, any transition to a zero-emissions vehicle consumer fleet is going to take place over decades and is expected to include plug-in hybrids. DRIVING FORWARD FUTURE MARKET OPPORTUNITIES That said, Grain Farmers of Ontario is actively taking up the challenge to explore and encourage new market opportunities for Ontario corn ethanol and crop-based biofuels. Looking ahead, there is strong potential for a new generation of agriculture-based biofuels tobe produced in Ontario using Ontariogrown feedstocks, particularly corn- or soybased renewable diesel, sustainable aviation fuel (SAF), ethanol-based hydrogen fuel, and renewable natural gas. The future global demand for SAF is projected to be significant. While the production of renewable diesel and SAF from hydrotreated esters and fatty acids is today’s focus, if Ontario’s corn ethanol production is maintained, it could play a significant future role as technologies scale. As an abundant, clean, and transformationready product, Ontario’s corn ethanol production has potential in SAF with alcoholto-jet technology. Market Development
As the home of Canada’s most significant existing biofuel feedstock production, ethanol processing, and biofuel consumption, Ontario should be a natural priority region for next-generation investment. However, there are challenges to be addressed in Canada’s investment ecosystem, including the capital cost to construct facilities, the ability to compete against U.S. subsidies, policy uncertainty, and the establishment of agricultural residue feedstock collection and marketing infrastructures. With this in mind, Grain Farmers of Ontario has encouraged the government to develop a Canadian biofuel strategy that considers current and future generation uses for corn ethanol, existing assets, and the significance of this market for Ontario farmers. For market and decarbonization potential to be fully realized, the government must collaborate with Ontario grain farmers and the value chain to foster an innovation and investment ecosystem that guarantees investor confidence. This will require robust enabling policy and incentives that provide regulatory predictability and make our region and crops competitive with the U.S., which is aggressively investing in biofuel infrastructure and production, generating substantive feedstock demand opportunities stateside. It is critical that the government acts immediately and addresses within the next 10 years to realize opportunities for corn and soy agricultural residue-based renewable diesel, sustainable aviation fuel, and renewable natural gas. This is required to establish competitive project returns that ensure project commissioning and allow for project development, permitting, finance, and construction time requirements. Grain Farmers of Ontario is also working with industry, maintaining regular engagement with all our biofuel processors. We recently supported industry efforts to secure a Bioeconomic Development Opportunity Zone rating for Sarnia-Lambton, which will support further investment into the region. This year, our Grains Innovation Fund established five strategic priority investment themes, including one focused on developing next-generation bio-economy grainsbased solutions such as renewable diesel, sustainable aviation fuel and bio-based materials. While the future market and policy landscape is never crystal clear, the potential prospects for Ontario biofuels are coming into focus. The policy, cooperation and farmer-centric strategies that led to the creation of Ontario’s ethanol industry provide an excellent roadmap for a nextgeneration biofuel sector in the province. Grain Farmers of Ontario will continue to track this market closely, engaging with industry and government to share that message and ensure a bright future for Ontario agriculture. Dana Dickerson is Grain Farmers of Ontario’s manager of market development and sustainability. l ONTARIO GRAIN FARMER 19 OCTOBER 2023 For market and decarbonization potential to be fully realized, the government must collaborate with Ontario grain farmers and the value chain. HARVEST the WAVE Maizex offers high-performance corn, soybean, and forage seed developed for Canadian farmers by a company owned by Canadian farmers. FIELD by FIELD | maizex.com Ride the wave to higher yields. Maizex_OGF_Harvest_3.46X8.865_8_23.indd 1 8/28/23 10:36 AM
20 An update on Grain Farmers of Ontario news and events 2022-2023 FINANCIAL STATEMENTS Grain Farmers of Ontario held its Annual General Meeting on September 12 at the Craigowan Golf Club in Woodstock. The financial statements for the 2022 - 2023 fiscal year (June – May) were presented by the auditors, RLB LLP, at the meeting. The financial statements are included immediately following this newsletter for the easy reference of all farmer-members. The financial statements can also be found in the 2023 Annual Report, available online at www.gfo.ca/about. WOMEN’S GRAIN SYMPOSIUM Grain Farmers of Ontario is hosting its annual Women’s Grain Symposium November 27 - 28, 2023, at the Delta Hotel and Conference Centre in Guelph. The Symposium is an opportunity for networking, professional development, and leadership development, and is open to women who are grain farmers, active members of their family grain operation, or working within the grain sector of agriculture business with a direct connection to farmers. A registration fee of $100 includes all Symposium events, meals, and one night hotel accommodation (Monday, November 27). More information, including the agenda, speakers, and registration can be found at www.gfo.ca/about/womens-symposium/ or by contacting Rachel Telford, manager of member relations at rtelford@gfo.ca. SIGN UP FOR GRAINTALK Get the latest farm news and important Grain Farmers of Ontario updates each week! Go online to www.gfo.ca and click on the button to subscribe. • STEMTERPRISE LAUNCHES Good in Every Grain, the public outreach campaign of Grain Farmers of Ontario launched STEMterprise, an award-winning science, technology, engineering, and math (STEM) program for Ontario Grade 3 classrooms. STEMterprise is a unique teaching resource based on Ontario grain farming in coordination with the Ontario elementary school curriculum. The Farming STEMterprise program created by the National Farmers Union United Kingdom (NFU U.K.) brings agriculture into the classroom in a fun and exciting way for students and teachers alike. This program, offered at no cost to Ontario teachers, will allow students to learn where their food comes from, how food gets from field to fork, and how farmers protect the environment while meeting the increasing demand for food. Students will also develop business, entrepreneurship, and sales skills as they create a classroom bake sale with their granola bar businesses. Good in Every Grain is excited to launch this program and bring the importance of agriculture back into classrooms, one grain ata time. Ontario Farming STEMterprise materials can be found for download at www.GoodinEveryGrain.ca/ontario-farmingstemterprise/. COME SEE US AT FALL EVENTS Grain Farmers of Ontario’s communications intern, Ainsley Leblanc, has be traveling across the province this summer visiting fairs and festivals with the Grain Discovery Zone trailer. The 2023 season wraps up at the Brigden Fair October 6 - 9 and at Sheldon Creek Dairy’s ‘Day on the Farm’ on October 28. The Grains on the Go trailer will be exhibiting at the Royal Agricultural Winter Fair November 3 - 12. FROM THE CHAIR A Q&A with Brendan Byrne, chair of Grain Farmers of Ontario. Do you see continued opportunities for growth in domestic and international trade of Ontario-grown grains and oilseeds? Absolutely. As chair, I have been fortunate to travel the world as an ambassador for Ontario grains, and the people I meet have overwhelming respect for Ontario farmers and our products. Our grain is truly considered world-class. There are opportunities for us in emerging markets and to deepen our sales to existing markets. One of the issues I have heard about is logistics and freight costs as barriers we need to overcome, but I am very optimistic about the demand for our grains and overcoming any obstacles. I recently attended the International Oilseed Producers Dialogue in Argentina, where we were made to feel very welcome and appreciated, and so many countries were eager to talk to us. It was clear to me that farmers around the world share a passion and a love for what we do and that our challenges with the environment, government regulation, and misinformed consumers are shared, too. Maybe by using our collective influence, we're better off than trying to fight alone. • Do you have a question for our chair? Email GrainTALK@gfo.ca. 2023 Annual Report Grain Farmers of Ontario Grain Farmers of Ontario 679 Southgate Drive Guelph, ON N1G 4S2 Tel: 1-800-265-0550 www.gfo.ca
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