Rising wheat prices not a silver bullet for Alberta farmers
CBC
Rallying global wheat prices — driven higher by Russia's invasion of Ukraine — are leading some to wonder if Alberta producers will pivot their seeding plans in the coming weeks.
But farmers, who are already dealing with soaring costs, say those higher prices come with few guarantees, adding it may not convince many of their peers to shake up their plans.
Together, Russia and Ukraine account for around 30 per cent of global wheat exports, but the current conflict in the region means their production will be curbed.
Lynn Jacobson, president of the Alberta Federation of Agriculture, said that while the chance for farmers to take advantage of the global shortage is there, it comes with some strings attached.
"Your opportunity is really going to be dictated by conditions in your area and what happens on your farm. If you get enough rainfall, you can do exceptionally well," said Jacobson.
Adequate moisture is just one factor that farmers are looking at heading into this season.
While wheat prices have gone up, so have the costs of inputs farmers need to grow their crops, like fertilizer and fuel.
On top of that, many of the province's producers are still feeling the impacts of the 2021 drought and are shorter on cash than usual.
How to finance this year's crop will be top of mind for many farmers, said Tom Steve, general manager of the Alberta Wheat and Barley Commission (AWBC).
Farmers also aren't ruling out the possibility of another drought, which may affect what seeds will go in the ground.
"It's a complicated situation because it's a bit of a double-edged sword," said Steve.
"[Regarding] high wheat prices, it's whether farmers will be able to broker a crop to satisfy those needs in the marketplace."
Stephen Vandervalk is a fourth-generation farmer who operates near Fort Macleod, Alta. He doesn't think that higher wheat prices will change farmers' plans too drastically.
"I think you'll see some more wheat go in, but even with this price increase, [wheat] isn't necessarily that much better to grow relative to other options."
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