Published by www.OntarioGrainFarmer.ca AUGUST 2024 AROUND THE WORLD Opening the Cuban market PRIVATE ENTERPRISE EXPANDS OPPORTUNITY
Mike Palermo 705-424-1410 or 800-971-4870 ivyseed@agri-turf.ca Thornton, ON Peter Szentimrey 519-620-1100 peter@ssltd.ca Branchton, ON COMING SOON NEWOAC Moon Soft Red Winter Wheat yield index of 110% in Area 2 great response to intensive management very limited seed available OAC Constellation Soft Red Winter Wheat yield index of 106% in Area 2 excellent tolerance to leaf and stripe rust very good grade retention easy to harvest Genes that fit your farm®is a registered trademark of SeCan. Locally developed for astronomical yields Book today! Genes that fit your farm.®
24Pest threats are changing Matt McIntosh 26Where do my licence fees go? Ontario Grain Farmer 28A refugee story Mary Feldskov AUGUST 2024 volume 15, number 8 ONTARIO GRAIN FARMER is 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: McCorkindale Advertising & Design; Advertising Sales and Sponsorship Consultant: Joanne Tichborne 6 ON THE COVER Stormy skies ahead Treena Hein WHAT TO EXPECT IN 2024 From the CEO’s desk FEEDING THE WORLD 4 A year in review Laura Ferrier 10 Market review 2022 - 2023 Blair Andrews 12 Business side Conversations with business experts 9 GrainTALK newsletter An update on Grain Farmers of Ontario news and events 16 What do Canadians think about food? Mary Feldskov 14 Crop side Agronomic information from crop specialists 23 European trade policies Ontario Grain Farmer 18 More winter barley acres Matt McIntosh 20 Grain contracts guide Mary Feldskov 22 Ontario Agricultural Conference 2024 Ontario Grain Farmer 24 Stronger leadership Rachel Telford 26 Good in Every Grain Updates on our campaign 30 Farming for world hunger Rebecca Hannam 28 172024 ANNUAL DISTRICT MEETINGS CHECK HERE FOR DATES AND TIMES DECEMBER 2023 / JANUARY 2024 volume 15, number 3 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 and Sponsorship Consultant: Joanne Tichborne BIODEGRADABLE POLY 15-03 OGF DecemberJanuary 2023-24_OnGrainFarmer 2023-11-09 11:04 AM Page 3 Crop side Agronomic information from crop specialists ON THE COVER Opening the Cuban Market Owen Roberts PRIVATE ENTERPRISE EXPANDS OPPORTUNITY 4From the CEO’s desk Global insights 16GrainTALK newsletter An update on Grain Farmers of Ontario news and events 30Good in Every Grain Updates on our campaign Soil health management systems Treena Hein Introducing GM wheat Ralph Pearce 14Observations from Brazil Matt McIntosh 18Ongoing European farm protests Melanie Epp 22Growing great wheat Alexandra Dacey 9Business side Conversations with business experts 27Crop side Agronomic information from crop specialists
IN JUNE, JEFF HARRISON AND I TRAVELLED TO WISMAR, GERMANY, TO PARTICIPATE IN THE 26TH INTERNATIONAL OILSEED PRODUCERS DIALOGUE (IOPD). Hosted by Germany’s Union for the Protection of Oil and Protein Crops, the IOPD included representatives from grains and oilseed organizations in the U.S., Brazil, Paraguay, Australia, and France. Grain Farmers of Ontario was joined by colleagues from the Canadian Canola Growers Association. The IOPD is just one of the many international events that Grain Farmers of Ontario participates in each year. The opportunity to connect with and talk to farmers, industry leaders, politicians, scientists, end-users, and consumers beyond our borders brings tremendous benefits to our organization; our industry is truly a global one, and the knowledge and perspective we glean from these trips are invaluable in shaping the work we do. The IOPD is unique in that it is truly a ‘farmers talking to farmers’ event — looking at the big picture of oilseed production and how we can all work together to address global impacts on the industry. Topics at the top of the agenda included European Union policies that impact trade, including the planned implementation of the EU Deforestation Regulation in late 2024, which will add significant financial and red tape burdens on international oilseed producers. The future of biofuels in a changing energy market, food security, sustainability, plant breeding, government policy, and research — all important issues that we deal with daily in Canada — were discussed in the four-day meeting. While Jeff and I were in Germany, the Grain Farmers of Ontario Market Development team was back home preparing for an incoming trade mission. In mid-June, a delegation of 13 wheat milling customers from seven Latin American countries visited the Richardson grain terminal, toured Ontario farms, and was hosted at a reception in partnership with Cereals Canada. Grain Farmers of Ontario staff and Board love nothing more than showing our global partners how Ontario farmers are producing high-quality, sustainably grown grains and oilseeds. Crosby Devitt, CEO, Grain Farmers of Ontario 4 From the CEO’s desk Global insights IOPD DELEGATES IN WISMAR, GERMANY. The IOPD and the incoming trade mission are just two examples of how Grain Farmers of Ontario engages with international partners — and how we can benefit. In this issue of the Ontario Grain Farmer, you can read more about how U.K. farmers have benefited from participating in the ADAS Yield Enhancement Network (YEN) — the inspiration behind our very own Great Lakes YEN project; a dispatch from an Ontario farmer participating in the Nuffield Scholar program; and cross-border research on soil health. Last year, when I was in Argentina, I learned more about the first GM-modified wheat variety; read more about that in this issue and its potential impacts on the global industry. One of the common refrains of farmers around the world is the unpredictability of the weather and its impact on growing crops — and we have seen that firsthand in Ontario this year. At the time of writing in late June, the erratic spring weather had resulted in late planting, unseeded acres, and last-minute changes of plans as farmers switched out hybrids or planted different crops. As we wrap up the cereals harvest in August and look ahead to the corn and soybean harvest in the fall, Grain Farmers of Ontario will continue to work on your behalf to make sure you have the tools and resources to mitigate the impacts of weather, pests, disease — whatever comes your way. •
When the stars align… exceptional winter wheat is born. The University of Guelph, Grain Farmers of Ontario and SeCan share the vision of creating a world-class wheat breeding program right here in Ontario. These exceptional locally-adapted varieties will be rising stars for your farm with top yields, strong straw and excellent disease tolerance. OAC Constellation NEWOAC Moon NEWOAC Virgo Limited seed available for Fall 2024 For your local SeCan retailer and genes that fit your farm, scan here ® OAC Constellation, OAC Virgo and OAC Moon were developed by the University of Guelph with support from the Government of Ontario through the Ontario Agri-Food Innovation Alliance. Breeding work takes place in part at the Ontario Crops Research Centre, which is owned by the Agricultural Research Institute of Ontario. Genes that fit your farm®is a registered trademark of SeCan.
6 Cover story Opening the Cuban market PRIVATE ENTERPRISE EXPANDS OPPORTUNITY Owen Roberts CANADA’S CONNECTION WITH ONE OF ITS FAVOURITE TOURIST DESTINATIONS, CUBA, MAY BE POISED TO REACH A NEW LEVEL — one that could be a changing market opportunity for Ontario specialty grain producers and help save the struggling Caribbean country from economic and humanitarian disaster. This opportunity is a result of a sea change in Cuba’s constitution. In 2021, the Communist government did an about-face and started letting its citizens develop micro, small and midsize enterprises with up to 100 employees. It was a new development in the dawning of Cuba’s private sector that began back in 2011 with the approval of one-owner businesses. This latest measure is driven by necessity. Beautiful yet beleaguered Cuba is becoming increasingly desperate for money. Long-standing U.S. economic sanctions, domestic bureaucratic mismanagement and miscalculations, Covid-19 reverberations, and a culture built around relying on the government for almost everything had made island living a mess. The Cuban government hoped that giving the green light to private enterprises, called pequeña y mediana empresa or “mipymes,” would help turn things around economically. Even though mipymes are regulated by the Cuban government, they have the potential to open doors for entrepreneurial, profitdriven Cubans who want more than what communism has provided. This could bode well for anyone interested in doing business with them, too. • Changes in Cuba’s constitution now allow private citizens to establish small businesses employing up to 100 people. • Economic struggles due to longstanding U.S. sanctions, domestic bureaucratic mismanagement, Covid-19, and a culture of relying on the government necessitated the change. • The changes could result in increased opportunities for Canadian farmers; Canada is already one of Cuba’s largest trading partners. • For Ontario grain farmers, there could be new opportunities for smaller, specialized grain exports through additional buyers other than the Cuban government. WHAT YOU NEED TO KNOW It turned out the pent-up demand was significant. In just three years, a whopping 11,000 mipymes sprung up, marking a new era in Cuba’s ideologically driven business culture. Start-up funds for many of the mipymes were courtesy of family members from abroad, who were accustomed to sending money back to Cuba to support their relatives’ day-to-day needs. Now, they would also be supporting their relatives’ mipymes. The Cuban government still has a huge role in business, and commerce there is not simple. The Canadian government publishes a detailed 10-step process for exporting to Cuba. But with the constitutional change, factories run, equipped, and staffed by the state can now work with the private sector responsible for importing. For example, a state-owned pasta factory can work with a private importer to bring in wheat flour. CUBAN MARKET (PHOTO SUPPLIED).
7 ONTARIO GRAIN FARMER AUGUST 2024 continued on page 8 “Exactly how they’ll get along as business partners is a question,” says Paul Johnson, Chicago-based chair of the U.S. Agriculture Coalition for Cuba. “But at least now there’s an opportunity for them to come together.” WORKFORCE IMPACTS Private industry is changing the workforce. Johnson says that one-third of the workforce is now employed by mipymes and farm cooperatives. Business activities include food processing, accounting, computer programming, hospitality, and restaurants. In a capitalistic society like Canada, these kinds of private-sector enterprises would be considered normal and routine. But that hasn’t been the case in Cuba for some 50 years following the revolution. Most people have become accustomed to working for the government; the government owns almost everything, and the financial incentives for working hard are nil. Johnson, who lived in Cuba and has friends and relatives there, is bullish about the emergence of mipymes. “Cubans can now work and earn hard currency without being dependent on government,” he says. MARKET OPPORTUNITIES Johnson also points to a growing government-owned warehouse industry developing in Cuba. Warehouses receive pallets and shipping containers — again, many of which are from family members living abroad — resulting in jobs for handlers and processors and a delivery network for drivers. The government owns the warehouses, but mipymes are allowed to rent space and operate. CUBAN FARMER PREPARING SEEDS. (PHOTO: OWEN ROBERTS). CUBAN FARMER TILLING THE SOIL. (PHOTO: OWEN ROBERTS).
8 Cover story “I don’t see the new changes opening up Cuba to something like huge boatloads of private grain shipments,” Johnson says, “but it seems like there could be new opportunities for smaller, specialized grain exports through additional buyers other than the government.” But while these positive developments sound promising, they mask a greater and dire woe belying Cuba. For example, currently, Cuba imports 70 per cent of its food and exports a pittance. When the Soviet Union collapsed, any semblance of economic vibrancy that accompanies a healthy import-export mix disappeared. Canada has been one of Cuba’s strongest trading partners. However, without significant output from Cuba, the trade imbalance is significant, CAD $66 million in February alone. The farming sector is sluggish. Food production was a vital part of the Cuban Revolution, employing thousands of Cubans and providing everyone with some measure of their basic needs. But, the long-standing Communist rule in which most agricultural land is owned by the state no longer motivates farmers. They are paid low wages, they have no modern equipment or supplies, and their numbers are dwindling, with 600,000 Cubans (mostly young people) having left the country in the past two years. This has all led to a perfect storm. Twothirds of Cubans still count on the federal government for a living and for basic food necessities. Normally, items such as powdered milk, rice, ground soy, baloney, eggs and chicken are made available to Cubans through government ration books. However, ration reliability has tailed off as the government has become increasingly poorer, and farmers’ production has dropped by as much as 90 per cent for some commodities. The severity of the problem was underlined in February when Cuba took the unprecedented step of asking the United Nations World Food Programme to send powdered milk for children. “This is a generational change that affects everyone,” says Johnson. “People are adjusting to the change in the economic model.” Johnson continues his efforts to work through political channels for change. His organization, comprising U.S. businesses such as grain companies and food processors eager to trade with Cuba, meets regularly with federal decision makers to describe how a private sector has developed in Cuba and try chipping away at the stubborn American trade embargo against the country. Reducing the embargo to any extent would help ease Cuba’s desperation. Johnson was hopeful U.S. President Joe Biden would take a softer line than former President Donald Trump. However, that hasn’t happened. “The U.S. government’s primary concern is the lack of freedom in Cuba,” Johnson says. “But the image of a capitalist in Cuba is in flux, and we’re all sorting through the changes.” • continued from page 7
9 ONTARIO GRAIN FARMER AUGUST 2024 Navigating farm succession BUSINESS SIDE WITH... (J.M.) WHAT DO FARMERS NEED TO KNOW ABOUT SUCCESSION PLANNING? (M.V.) Most people don’t know that, if done well, there’s power in building a farm succession plan. It is more than tax planning and legal documents (although it’s important to get these right); a succession plan allows both generations to build skills, advisor relationships, alignment, confidence, and trust. Succession planning also helps us to develop better communication and collaborative decision-making skills— two key factors that can result in stronger relationships all around. Farm families need to understand that accepting change is easier if it is co-created and happens incrementally. Today’s succession plans are no longer singular events created by the existing generation; they are a series of smaller questions asked and answered together over an agreed-upon time period. Farmers also need to know there are resources to help them navigate this process, including a new series of free and inexpensive tools to start building up the knowledge and skill sets needed for succession to be successful. Farmers’ Bridge is a new service that helps farms with the transition between generations, more efficiently and professionally, with a people-centric approach. Farmers can start with our on-demand video training. Currently, two courses are available on the learning platform at utensil.ca, with plans for more. Transition Foundations is a series of short videos of experts clearly answering common succession questions. Another course is Transition Communication, which provides farm families with practical tools to make decisions together, understand conflict, and create clarity with aligned goals. Whether it’s conflict mediation, counselling, transition planning, financial planning, coaching, tax or legal advice, Farmers’ Bridge has nationwide, farm experienced experts who can help. WHAT’S DIFFERENT ABOUT FARM SUCCESSION PLANNING TODAY? Recent reports show that more farmers are developing succession plans, and many of them have wills. That’s encouraging, but the reality is that the average age of farmers is increasing, and today’s farm situations are more complex — farms are more valuable, have higher income, employ more people, are more specialized, and utilize more technology. Farms today can also have multiple enterprises with generations of family working on them. Today’s farm retirement statistics are the reason we started Farmers’ Bridge. With 40 per cent of Canadian farmers expected to retire in the next 10 years, and only 12 per cent of farmers with written succession plans completed, this gap will leave our industry very vulnerable. What matters most today is that, on average, farmers are getting progressively older, and a large cohort is well into retirement age. While farmers are living longer, we need to transition roles and responsibilities and ownership years, even decades, before age limitations or wills kick in. WHAT MAKES A SUCCESSFUL FARM SUCCESSION? It starts with better communication. I believe all succession problems are communication problems, and it isn’t easy. The transition process means farmers are moving from communicating as a family to communicating as business partners. Maggie Van Camp, founder of Farmers’ Bridge, utensil.ca Business side Jeanine Moyer Don’t assume one big succession family meeting will get the job done. Everyone needs to take a consistent, safe, and focused approach to communicating and decisionmaking. And don’t just jump to tax-saving and legal structure solutions. Establish a way to communicate that works for your farm and family so the planning process goes smoother. In the long run, it will save time, headaches, and money. DO YOU HAVE ANY TIPS FOR CREATING A FARM SUCCESSION PLAN? You are all on one team. Align your goals and core values and keep everyone informed along the way. Timelines are guidelines. Deciding on timelines is much easier than talking about money, so do that before you dive into seeking succession solutions. The next generation needs lots of time to pay off mortgages and build the business, so don’t let fear cut that short. You are not alone. There are professionals who can help you. A multidisciplinary approach can be more efficient. Also, this is very emotional for all parties, so if you are struggling, talk to someone you can trust and maybe even a counsellor. Create a bundle of hope. You need to understand that it’s more involved than just a succession of ownership plans. It’s really a series of smaller co-created plans for change, such as strategic business plans, retirement, financial, estate, housing, roles and compensation plans, and, of course, tax and business structure plans. •
10 Research Soil health management systems CROSS-BORDER PROJECT COULD LEAD TO FARM SAVINGS Treena Hein ADOPTING A ‘SOIL HEALTH MANAGEMENT SYSTEM’ MAY SOUND DAUNTING, but many of you reading this are already implementing some of the practices — and a new study encompassing Canadian and U.S. farmers shows the economic benefits are clear. This study was conducted by the Soil Health Institute (SHI), a North American nonprofit institute based in North Carolina, in collaboration with General Mills. SHI analyzed 10 wheat farms in Kansas and North Dakota and five grain farms in Ontario, Manitoba, and Saskatchewan. The average farm size was 1,600 acres in the U.S. and 3,851 in Canada. In the opinion of SHI soil scientist Dr. Jenny Bower, these studies are essential for providing a business case for the adoption of best soil management practices. “The Greenbelt Foundation, an organization with which we collaborate, found in their report ‘The Power of Soil’ that the number one consideration behind Ontario farmers’ decision to adopt soil health practices was their perceived benefits, costs, and risks,” says Bower. “Studies like this are essential to inform farmers’ perceptions of the economic outcomes of adopting soil health practices.” OUTCOMES For the Canadian farmers in the study growing small grains, using a soil health management system (SHMS) cut costs by an average of $37/ acre. Based on standardized prices, using a SHMS increased net farm income for these farmers by an average of $42/acre for small grains and by an average of $40/acre for corn, $10/acre for soybean, $74/acre for canola, and $79/acre for sugar beet. One farmer realized additional revenue of $46/ acre for grazing cover crops. TILLAGE AND COVER CROPS As the name suggests, a SHMS prioritizes the health of soils, mainly by reducing soil disturbance and keeping living roots in the ground. Conservation tillage is key. On average, the study farmers have been practicing no-till for over 15 years and cover cropping for over 11 years. Of the Canadian farms participating in the study, 96 per cent of the studied farmland was no-till, with the rest reduced till, and cover crops are planted on 61 per cent of all acreage. Note for comparison’s sake that the rate of no-till adoption for all of Canada is currently 61 per cent, with a rate of 30 per cent in Ontario, 29 per cent in Manitoba and 78 per cent in Saskatchewan. Among farms across Canada that have cover crops in use, 23 per cent of cropland is planted in cover crops (26 per cent in Ontario, six per cent in Manitoba, and 14 per cent in Saskatchewan). Two of the Canadian study farmers planted cover crops before small grains production, one with a barley, pea and fava bean mix before spring wheat and spring oats and the other with winter/cereal rye and clover before spring oats. Cover crop seed expenses averaged $11.93/acre for these farms. In this study, the researchers found that planting cover crops and reducing tillage may enhance weed suppression, leading to some cost savings through changing or eliminating some herbicide applications. In other circumstances, additional herbicide is used for weed management or cover crop termination. Savings in fertilizer and amendment costs due to using a SHMS were reported by three of the Canadian farmers, amounting to $28.66/acre when averaged across all five farms. CROP PRODUCTION AND FARM BENEFITS Staying with the Canadian farmers, increased crop resilience to extreme weather — an indirect economic benefit of using a SHMS — was reported by all. “Improved crop resilience is due to improved soil organic matter and soil structure,” explains Dr. Archie Flanders, THE SOIL HEALTH INSTITUTE HAS PARTNERED WITH ONTARIO’S GREENBELT FOUNDATION. (PHOTOS: GREENBELT FOUNDATION).
11 ONTARIO GRAIN FARMER AUGUST 2024 A soil health management system prioritizes the health of soils, mainly by reducing soil disturbance and keeping living roots in the ground. Conservation tillage is key. SHI agricultural economist. “The most-often mentioned reason for improved crop resilience is that crops better withstand drought conditions due to improved water infiltration into root zones.” Four of the five farmers also reported more timely access to their fields, which again relates to boosts in water infiltration. At planting, farmers don’t have to wait as long for fields to dry out, notes Flanders, and in the fall, harvest is not as subject to the normal delay times from rainfall if it occurs. Four of the five farmers also reported improved water quality, which Flanders says is due to reduced erosion. “Famers are observing less runoff into adjoining waterways,” he says, “and when runoff does occur, it is clear rather than tinted with silt.” Decreased erosion and improved water infiltration are also believed to be the reasons why one farm had increased spring wheat yield (five bushels/acre) from adopting a SHMS. This farmer also reported a more uniform yield across the entire farm. “Improved production was especially realized over areas with knolls,” says Flanders. However, one farmer reported a decreased yield of five bushels/acre for spring oats but also reported improved water infiltration and increased soil organic matter. In this case, the farmer had planted cover crops that were grazed for increased revenue and cover crops were allowed to winter kill rather than termination with herbicide. Flanders attributes the decreased yield to be likely due to delayed planting and shortened growing season caused by planting the cover crops. However, he notes that with reduced production expenses and revenue from grazing cover crops, this farm had the highest net farm income. SHMS AND EQUIPMENT COSTS This study also found that equipment ownership expenses are reduced if a farmer uses a SHMS. Equipment ownership is a per-acre expense that corresponds to usage of equipment during field work. The savings for farmers that adopt a SHMS are realized through getting rid of tillage equipment and not needing more expensive, higher-horsepower tractors required for tilling. CONFIRMED RESULTS SHI scientists are finishing the analysis of their national-scale economic assessments, which are being conducted with partners on over 150 farms in Canada and the U.S. These results confirm the smaller study, showing clear economic benefits linked to the adoption of SHMS, primarily through reduced production costs and increases in net farm income. “These results have also demonstrated how these systems can effectively mitigate operational risks across diverse climates and production systems,” says SHI chief of staff Dr. Emily Bruner. “Going forward, we’re focused on equipping farmers, researchers, conservationists and policymakers with practical insights to support the adoption of SHMS by expanding our research to cover a broader diversity of crops and soil types, as well as investigating the short-term economics of adoption. Our goal is to strengthen support for adopting these systems by providing regional, place-based information to inform decisions and policies as farmers transition to new management approaches.” Read the full report at www. soilhealthinstitute. org. The SHI also has a current project with the Greenbelt Foundation benchmarking soil health in the Golden Horseshoe area of Ontario on 300-500 grain and oilseed farms. The project provides farmers with analysis and interpretation of soil health indicators. For more information: www.greenbelt.ca/ greenbelt_soil_health.•
12 Industry News Introducing GM wheat ARGENTINE VARIETY RECEIVES APPROVAL IN BRAZIL AND PARAGUAY Ralph Pearce IN 2021, THE GLOBAL WHEAT MARKET FIRST HEARD THE NEWS ABOUT A DROUGHT-TOLERANT WHEAT VARIETY developed and registered by Bioceres Crop Solutions, a company based in Argentina. It was finally going to happen; after years of talk about research into different technologies by BASF, Bayer, and Syngenta — among other efforts — the world was going to see its first genetically modified (GM) wheat variety, registered as HB4. The challenge? It first had to garner the approval of Brazil, Argentina’s leading export market for wheat, and that hurdle has now been overcome. Despite the three-year timeline, HB4 has been in development for more than 20 years since a research group of the Litoral Agrobiotechnology Institute, known as CONICET-UNL, discovered the sunflower hahb-4 gene-activated plant response mechanisms to abiotic stress. Furthermore, the group found that gene could be transferred to other plants, including wheat and soybeans, to activate the same mechanism. “This kickstarted 20 years of further research and public-private collaboration, which led to the development and commercialization of HB4 technology,” says Martín Mariani Ventura, global seed and trait licensing manager with Bioceres Crop Solutions. The proof of concept was developed by Dr. Raquel Chan in 2005, and the first field trials were conducted in 2008. “Final event selections were made in 2012 for wheat based on yield and molecular data. Our first regulatory submissions took place in 2014.” HB4 wheat is approved in 11 of the largest wheat-producing markets and is the world’s only available drought-tolerant wheat technology. Mariani Ventura adds that the complex genome structure of wheat provided some significant challenges, which is partly why the regulatory submission took place nearly 10 years after proof of concept. Yet in spite of any consumer reluctance to genetic modifications in wheat, changes in food security and demands for higher productivity in the face of drought have meant shifting attitudes. “We’re seeing signs today that people understand more about GMOs and that opposition to them is easing,” says Ventura, citing a recent survey in Brazil. “It found that 72 per cent of consumers did not have any problems eating GM wheat. The survey also showed that 57 per cent knew what a genetically modified food was and 73.4 per cent were aware that they consume genetically modified foods.” Abimapi, an association representing biscuit, pasta, bread, and cake makers in Brazil, was initially against GM wheat, yet the organization changed its stance after the survey. Bringing technologies to wheat was a must because it is one of the world’s staples, and that’s been reflected by HB4’s approval for food and feed use in Australia, Columbia, Indonesia, New Zealand, Nigeria, South Africa, and Thailand. AN INEVITABILITY, BUT … Consumer acceptance in North America has been slow, in spite of the U.S. acceptance of GM enhancements and developing droughttolerant varieties. Drought has become an issue in areas of Texas, Oklahoma, and Kansas, yet concern over consumer backlash has created barriers to bringing GM varieties to market in the U.S. and Canada. Quentin Martin, Co-owner of Cribit Seeds near Kitchener, is aware of the impediments to genetic modifications in wheat. Although growers understand the advantages of GM corn, soybeans, and canola, several issues continue to impede the progress of wheat’s acceptance. “The majority of growers in Ontario are already engaged in the use of transgenics,” says Martin. “That’s the larger question, and most producers would be aware of the societal or consumer acceptance and understand that’s what matters.” He used to get defensive about trying to explain the differences between transgenics or genetic mutations, adding that particular battle in the 1990s didn’t fare well for agriculture. However, even with gene editing, the emerging issue for the average consumer is their tolerance for artificial intelligence. “It may hinge more on the sense of the intrusion of technology and their lives in general,” says Martin. “Their lack of control may have more influence but how society at large will respond to things, I’m at a loss to figure it out.” The other issue he mentions is the use of farmsaved seed, causing a lack of investment in
13 ONTARIO GRAIN FARMER AUGUST 2024 HB4 has been in development for more than 20 years since a research group of the Litoral Agrobiotechnology Institute, known as CONICET-UNL, discovered the sunflower hahb-4 gene-activated plant response mechanisms to abiotic stress. Farm barns to silos, 11,000+ farmers like you have one thing in common. They are understood, valued and insured by The Commonwell Mutual Insurance Group. Find a qualified broker in Commonwell Country today: commonwellcountry.ca/farm NOTHING SMELLS AS SWEET ` j v `j jv `v `jv h OMOP=NJP=é~ÖÉ=~Ç=ÅçéóKéÇÑ===N===OMOOJNOJOM===QWNQWOR=mj the development of cereal varieties. To move things forward, it needs the participation of growers and industry. DIRECT FOOD SOURCE Despite the inevitable nature of GM wheat’s acceptance, Scott Krakar maintains the major stumbling block for domestic acceptance, not just among consumers, is by processors and millers. “The overwhelming response today is ‘No’ – millers in developed nations are not interested in GM wheat,” says Krakar, grain merchandiser with London Agricultural Commodities. “There is too much negative connotation and fears from consumers for millers to be interested in GM wheat. Wheat products already have a segment of the population advocating against gluten consumption, and cereal companies face negative media with glyphosate residue detection, resulting from pre-harvest burndown applications discovered in trace amounts.” Such a marketing challenge is not what millers and food companies want. It’s not that the industry is completely against genetically modified wheat, adds Krakar. In many cases, it makes perfect sense, especially in developing nations. Even wheat production in Argentina could see an expansion with the adoption of the HB4 variety, where grower production risks are mitigated as crop production becomes more predictive with inclement weather conditions. “This is potentially the opening of the door of GM wheat, assuming customers buy the foodstuff produced,” says Krakar, noting it also depends on the traits produced. “Drought tolerance, for example, would be more beneficial to Western Canada, but if there were a trait that could prevent fusarium or in-field sprouting, growers in eastern Canada would be very adoptive.”•
14 Industry News Observations from Brazil WHAT BRAZIL CAN TEACH US ABOUT ENVIRONMENTAL PRESERVATION Matt McIntosh EDITOR’S NOTE Matt McIntosh is a regular contributor to Ontario Grain Farmer and is a 2024 contemporary Nuffield Scholar, researching initiatives helping landowners conserve or re-establish ecologically and culturally significant areas — without harming farm viability. In March 2024, he travelled to Mato Grosso do Sul in Brazil for Nuffield International’s annual Contemporary Scholar Conference. In this piece, Matt highlights his observations of visiting the Brazilian countryside and hearing from those working in Brazilian agriculture. The opinions expressed in this article are those of the author. BRAZIL IS KNOWN WORLDWIDE AS AN AGRICULTURAL POWERHOUSE, particularly when it comes to grains and beef. Having visited the country and the central-western state of Mato Grosso du Sol specifically, the truth of this reputation was immediately clear upon seeing the countryside. From the far-removed plane window to field walks, the scale of Brazil’s agricultural capacity is astounding. Perhaps more surprising is the level of environmental preservation and emphasis on biodiversity shared by some within the farming sector. For those of us from a political environment focused largely on carbon or from areas long-devoid of native landscapes, how the Brazilians manage their environment is something to watch. When it comes to promoting biodiversity, it might even be something to learn from. PROFILE OF OUR COMPETITION Mato Grosso do Sul is one of Brazil’s major grain and beef-producing regions. With soil not dissimilar in colour to the deep red characteristic of Prince Edward Island, local grain growers are able to take advantage of the region’s long and hot — emphasis on hot — growing season to produce multiple crops each year. Indeed, the seemingly continuous growing season generates striking vistas. This includes, for example, newly planted corn fields alongside chest-high corn crops, ready-to-harvest soybeans, and sugarcane in various stages of growth. That’s to say nothing of towering eucalyptus tree plantations, which, thanks to the heat and significant annual moisture, reach their full height within a mere seven years of planting. The scale of production in Mato Grosso du Sol and other states within Brazil is matched by the size of farms and infrastructure. The landscape is dotted with large grain elevators everywhere, which is good for the area’s farmers, considering the logistical challenges of transporting bulk commodities vast distances over poor rural road networks. The highway grid, conversely, is expansive and (arguably) well-kept. The state government is currently working on a crossborder highway with countries to its west in an effort to bring commodities directly to Pacific Ocean ports — thus eschewing the need to ship via the Panama Canal or the southern tip of South America. It’s sure to be quite the leg-up for an already highly competitive grain production area. The sheer scale of some farm businesses is, in a word, astounding. As someone who regularly speaks with producers managing thousands or tens of thousands of acres, I found it almost incomprehensible that a handful of people can, for example, acquire and manage 220,000 hectares — enough land to encompass all of Essex County, plus a significant chunk of Chatham-Kent. I found myself wondering what the social implications of land ownership on this scale A BRAZILIAN FARM. (PHOTO: MATT MCINTOSH).
15 ONTARIO GRAIN FARMER AUGUST 2024 were or the outsized impact one or two large farmers could have on global markets, even when making seemingly small business decisions. AN ENVIRONMENTAL MODEL? Brazil is often associated with deforestation and ecological destruction, particularly in the Amazon. This is not incorrect, although reality is (predictably) more complicated. The latter half of the 20th century saw concerted efforts by Brazil’s public and private sectors – the line between them likely blurred during periods of dictatorship – to conquer the forest for agriculture. As one speaker described, this led to very high levels of deforestation and served as the basis on which much of the world views Brazilian agriculture. For many years, however, the national government has enforced regulations preserving significant portions of the country’s natural landscape. In the Amazon basin, for example, landowners are required to keep a minimum of 80 per cent of their land under forest. In Mato Grosso do Sul, the minimum requirement is 20 per cent. Maintaining Permanent Preservation Areas along slopes, waterways, and mountaintops is also required. How this plays out on the ground is surely complex, and both legal and illegal deforestation were cited as ongoing challenges. Regardless, the fact that Brazilians long ago identified nature preservation as critical to their nation and its global brand is forward-thinking. More than one conference speaker highlighted Brazil’s emphasis on biodiversity and significantly greater investment in biofuels as an alternative to carbonfocused policies. Carbon was identified as a “northern hemisphere issue” several times. Given that my Nuffield research topic focuses on environmental restoration, I found this perspective intriguing and, perhaps, a potentially useful approach to solving a variety of environmental problems at home. • NUFFIELD SCHOLARS TOURED BRAZILIAN FARMS IN MARCH. (PHOTO: MATT MCINTOSH).
YOUR GRAIN FARMERS OF ONTARIO TEAM Here is our next installment of profiles of your Grain Farmers of Ontario staff to help introduce you to the team. MAGGIE POLLARD, COMMUNICATIONS INTERN Maggie Pollard joined Grain Farmers of Ontario in May as a communications intern. In this one-year contract position, Pollard will represent Grain Farmers of Ontario at summer events with the Grain Discovery Zone trailer and support communications projects in support of public trust initiatives and farmer-member events and communications. Pollard graduated from the University of Guelph in June 2024 with a Bachelor of Science in Agriculture, majoring in animal science. She was raised on a livestock farm in Harrow, Ontario, where her passion for agriculture grew. Pollard has worked for several agricultural companies throughout her degree and wishes to continue to expand her agriculture knowledge. She looks forward to travelling all through Ontario and to educate the public on grain farming. 16 An update on Grain Farmers of Ontario news and events NEW INVESTMENTS IN CORN, OAT, AND SOYBEAN RESEARCH In June, Guelph MP Lloyd Longfield announced the new Cropping Systems Cluster on behalf of the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food. The announcement was made at Woodrill Farms in Guelph. The Cropping Systems Cluster, led by the Canadian Field Crop Research Alliance (CFCRA), will support research advancements in corn, oat, and soybean that can reduce greenhouse gas emissions and improve the environmental and economic stability of the grain sector. Grain Farmers of Ontario is a founding member of the CFCRA. This new funding of up to $5.7 million from Agriculture and Agri-Food Canada will be matched by an additional $4.8 million from the industry for a total investment of up to $10.5 million over five years. AGRONOMY INFORMATION Visit www.gfo.ca/agronomy to find a wealth of agronomic information from the Grain Farmers of Ontario agronomy team, including weekly field observations, fact sheets, and webinars on important topics. ASA CORTEVA AGRISCIENCE YOUNG LEADER PROGRAM Applications are now being accepted for the 2024-2025 American Soybean Association (ASA) Corteva Agriscience Young Leader Program. Applications close September 4, 2024. One farmer or farming couple will be selected to represent Grain Farmers of Ontario in the program. There is no upper age limit for participation; however, farmers must be 21 years or older to apply and be selected. Applicants should be interested in pursuing leadership roles within the soybean industry. The program focuses on leadership, communications, and issues-based training and builds a strong peer network. A Q&A with Jeff Harrison, chair of Grain Farmers of Ontario. You have had some interesting international experiences. What have you learned or brought back from those trips? I have had many international experiences on behalf of the Grain Farmers of Ontario, and I recently attended the Annual International Oilseed Producers Dialogue (IOPD) in Wismar, Germany. The IPOD brings together farmer organizations like ours from Germany, the U.S., Paraguay, Australia, France, Brazil, and Canada to discuss topics such as trends in government policy and regulations affecting farmers. A highlight for me was meeting two French farmers representing French oilseed producers. This past year, farmers in France spent weeks protesting government regulations that harmed farming. I had the opportunity to hear their story and their motivations. Hearing from our peers from other countries, it is clear that we all have common issues despite our vastly different geographies. It was clear that each group needed leaders who were ready to act when needed. The actions might be different from group to group, but it was important that they were prepared to be proactive and that the government understood their frustrations. I am proud to lead a Board that takes action often and is ready to act on our members’ behalf in any way we can. We have worked to show our governments at all levels that we are proactive and prepared to act. Do you have a question for the chair? Email GrainTALK@gfo.ca. FROM THE CHAIR
17 ONTARIO GRAIN FARMER AUGUST 2024 WIN! Enter the August contest of the month at www.OntarioGrainFarmer.ca. In August — enter to win 1 of 5 pairs of tickets to the 2024 International Plowing Match, courtesy of the Ontario Plowman’s Association (valued at $40/pair). The contest is open to all farmer-members and is online only. The program’s two components take place December 2-5, 2024, at Corteva Global Business Center in Johnson, Iowa and February 28-March 4, 2025, in conjunction with Commodity Classic in Denver, Colorado. Soybean farmers interested in this opportunity can complete the application form found on the ASA website, soygrowers.com or contact Rachel Telford, manager of member relations, at rtelford@gfo.ca. Grain Farmers of Ontario is an affiliate member of the American Soybean Association. ANNUAL GENERAL MEETING The Grain Farmers of Ontario Annual General Meeting will be held on September 10, 2024, at the Craigowan Golf Club, 595838 Highway 59 N, Woodstock, from 8 a.m. – noon. A buffet breakfast and lunch will be served. The meeting will also be live-streamed. All farmer-members are invited to attend. The meeting is being held in conjunction with Canada’s Outdoor Farm Show at the Discovery Farm in Woodstock, Ontario. Attendees of the AGM will receive a complimentary ticket to the show. For more information or to register, visit www.gfo.ca/agm. WOMEN’S GRAIN SYMPOSIUM SAVE THE DATE! Grain Farmers of Ontario will be hosting its annual Women’s Grain Symposium November 25-26 in Guelph. The two-day event will be an opportunity for women farmer-members to make connections with each other and participate in professional development. Please check www.gfo.ca for more details as they become available. DECISION TOOLS AND CALULATORS Visit Field Crop News, www.fieldcropnews.com, to find the tools and resources formerly found on Ontario Corn Committee’s site (gocorn.net). • Corn Nitrogen Calculator • Corn Replant Decision Tool • Ontario Optimum Corn N Rate Estimator Delta Yield Tool • Ontario Corn Committee Hybrid Selector Tool • Ontario Manure Nutrient Calculator • Ontario Crop Residue Value Estimator SIGN UP TODAY FOR GRAINTALK E-NEWS Get the latest farm news and important Grain Farmers of Ontario updates delivered to your inbox each week! GrainTALK is Grain Farmers of Ontario’s weekly e-newsletter that highlights the organization’s latest activities, breakthroughs in research, and timely production information. Sign up today and get your weekly dose of Grain Farmers of Ontario in a concise email. Go online to www.gfo.ca and click on the button to subscribe. PRIVACY POLICY Grain Farmers of Ontario is committed to responsibly collecting, using, and disclosing information in compliance with the provincial Freedom of Information and Protection of Privacy Act and the federal Personal Information Protection and Electronic Documents Act. When you voluntarily provide us with any information, we will NOT rent, sell, or otherwise disseminate your information to ANY third party. Please contact Grain Farmers of Ontario’s privacy officer at info@gfo.ca if you require additional information on privacy issues. MARKET COMMENTARY By Philip Shaw On June 12, the United States Department of Agriculture (USDA)weighed in with its latest WASDE report. USDA estimated a new crop corn at 14.86 billion bushels with a yield of 181 bushels per acre on 90 million planted acres, the same as in May. The new crop ending stocks are set at 2.102 billion bushels, while old crop stocks are at 2.022 billion bushels. On the soybean side of the ledger, the USDA also came in the same way as in May. USDA’s estimated 4.45 billion bushels of soybeans, with the national average yield at 52 bushels per acre. Ending stocks are set to come in at 455 million bushels. It has been a wet and delayed planting season in part of southwestern Ontario, which will certainly impact negatively on crop production. Ontario cash grain prices continue to benefit from a Canadian dollar fluttering near 73 cents U.S.•
18 Industry News Ongoing European farm protests PRODUCERS CHOKED BY RED TAPE AND ENVIRONMENTAL POLICY Melanie Epp FARMERS ACROSS THE EUROPEAN UNION HAVE BEEN PROTESTING ISSUES driven, for the most part, by failed policy since early 2024. The reasons behind the protests differ from country to country, but most centre around escalating costs, tightening environmental regulations and the rise of cheap imports, particularly from Ukraine. Farmers have staged protests in their respective countries and Brussels, where EU policymakers regularly meet. Their complaints have been heard to some degree. In response, the European Commission extended subsidy allowances by six months until the end of 2024, and the European Council formally adopted a targeted review of the Common Agricultural Policy (CAP) with the goal to cut red tape and ensure simplification for farmers. FARMER PROTESTS ERUPT ACROSS EUROPE Although protests have been ongoing in some European countries for years, the main wave of protests that hit countries across the continent this year began in February. Demonstrations of discontent have been driven primarily by low commodity prices, increased trade with non-EU member states, and proposed environmental regulations, including pesticide bans, nitrogen emissions curbs, land and water use restrictions, and carbon taxes. In a February speech to the European Parliament, Thijs Rompelberg, a Dutch Farmers’ Union LTO board member, explained why Dutch farmers are unhappy with the current policy. He then urged policymakers to consider a new European agricultural and food strategy. This new strategy included five key points. In his first point, he suggested that Europe adopt a bottom-up approach to limit bureaucracy and over-regulation. “Farmers and growers want to run their farm,” Rompelberg said. “This should not be done by bureaucrats in an office in Brussels.” As an example, he pointed to a regulation that forced farmers to plant catch crops by specific fixed dates rather than when it best-suited operations. “Fixed dates to sow catch crops don’t work in practice,” he said. “The weather determines the sowing and harvesting of crops.” Rompelberg pointed out the diversity of agriculture in Europe, stating that blanket regulations don’t fit. Farmers need clear targets and tools to reach those targets. Thirdly, Rompelberg questioned increasing pressure from international trade. Limiting production across the EU means products will have to come from elsewhere, he said. “Our costs are higher than in most countries, so this needs to be part of international trade agreements and the World Trade Organization,” he said, adding that policymakers should integrate environmental demands into trade deals. In his speech, Rompelberg also called for the adoption of innovations that could help farmers stay competitive while increasing sustainable production. He called on the European Commission to register RENURE, which is nitrogen recovered from manure, to be used as an inorganic fertilizer replacer. Finally, Rompelberg expressed concern over the future of agriculture in Europe, a sector he said the Commission should view as a strategic asset that requires protection. He said his concern extended to the younger generation, which lacks prospects to enter the sector. “We need outcome-based measures, we don’t need rules-based measures,” he said. “We need lawmakers to work with farmers and growers to grow confidence and make the transition.” RISE OF CHEAP IMPORTS While eastern European farmers have also expressed frustration with tightening environmental regulations and increased red tape, the bulk of their complaints are focused on unfair competition, particularly “THE FARMERS MUST DO THIS, THE FARMERS MUST DO THAT. WHAT DO YOU THINK YOURSELF? WE’RE SICK AND TIRED OF IT.” (PHOTO : MELANIE EPP).
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