Farmers Not Holding Back From Selling

VANCOUVER - Sep 15/12 - SNS -- From a farm income perspective, the 2012-13 marketing year is off to a strong start in western Canada, with the quantity of off-combine sales of all crops at their highest level of the past decade.

During the first six weeks of the current marketing year, farmers delivered 5.21 million metric tons (MT) of grains, oilseeds and peas to primary elevators and terminals. The previous best season opener of the past decade was in 2006, when farmers sold 4.72 million MT of grains and oilseeds during the first six weeks of the marketing year.

Not surprisingly, canola has shown the most growth in opening season sales by western Canadian farmers. This is a simple reflection of the fact it is the only crop which has seen consistent growth in seeded area as it became the most widely planted crop in the region. However, in terms of sales volumes to the bulk handling system, canola and peas are the only two crops which have shown consistent growth over the past decade.

Between 2002 and 2006, canola accounted for 20% of all product delivered the first six weeks of the marketing year, while peas accounted for 8% of the total volume. During the past five years, canola has accounted for 27% and peas 12%. By contrast, wheat's market share dropped from 41% to 37%, durum from 10% to 8%, while farmers are selling roughly the same proportion of oats and flaxseed.

Interestingly, this year is seeing some significant changes in the relative volume of each crop that farmers are selling. As a percentage of total field crop sales, deliveries of wheat and peas are up over last year. On the other hand, canola's market share is unchanged, while deliveries of durum and oats are down.