This year seems profitable for Man. producers

Producers with average harvests should have a profitable year in 2022, Manitoba Agriculture estimates.

According to the current cost of production, forward prices and expected yields, only barley seems to be a loser of money among the large acre crops of the eastern prairies.

This is in terms of “net profitability”, which includes the costs of land, machinery and living costs. In terms of operating costs, all crops should be black by 2022.

This is a product of high crop prices, despite high input prices. It is based on the assumption of modest yields compared to long-term averages, but much higher yields than some farmers devastated by the drought last year.

The main crops that yielded the best yields, according to current assumptions, appear to be oats, rapeseed, northern hard wheat, and corn, and barley, soybeans, and peas appear to be the poorest.

Hard red spring wheat is in the middle.

If farmers look at the same results, these projections should continue to favor canola acres and discourage soybean acres.

In 2017, soybeans were grown on 2.3 million acres in Manitoba, but this has had a lower trend, to 1.3 million acres in 2021, which was a slight increase from 1, 15 million by 2020.

Despite relatively low production costs due to low soybean fertilizer requirements, the expected low yields of 35 bushels per acre do not compensate enough to lift it from the profitability basement.

Canola, despite the club’s root challenges and other reduced rotation problems, continues to be a constant source of money and a dominant crop in Manitoba’s farmland.

These are just Manitoba calculations. Each farm should customize the numbers to suit its own averages and expectations.

An important factor this year that will affect the real costs of production will be the real cost of fertilizers for individual farmers.

There has been a huge increase in fertilizer prices since 2020 and an increase since the fall of 2021. The actual price a farmer pays for fertilizer could be a major factor in profitability, depending on when he bought it and at what price. The price of fertilizer near the time of planting is impossible to estimate, given the supply chain problems affecting the world.

Manitoba’s analysis of agriculture can be found in the 2022 Cost of Production – Crops report on the department’s website, in the Production Economics section.

from
https://vegetablesnow.com/this-year-seems-profitable-for-man-producers/