STAT Communications Ag Market News

Major Decline in Canadian Output

OTTAWA - Dec 3/21 - SNS -- Drought conditions in western Canada resulted in a significant decline in total output of grains this year, according to Statistics Canada's final crop report for 2021.

"Despite favorable spring seeding conditions across most of Canada, extremely hot and dry weather impacted crop development during the growing season in Western Canada," Statistics Canada said. "In Eastern Canada, temperatures were near normal throughout much of the growing season, with sufficient moisture in Southern Ontario and the Atlantic provinces, while much of Quebec faced dry conditions.

"Because of challenging growing conditions, several major field crops grown predominantly in Western Canada experienced their largest year-over-year yield decrease on record, falling to levels not seen in more than a decade. By contrast, yields for certain crops grown in Eastern Canada, such as corn for grain, rose due to favorable growing conditions."

The yield and production estimates are based on a survey of roughly 27,200 Canadian farms between October 8 and November 12, 2021. Farmers in each province were asked to report their estimated seeded and harvested areas, yield and production of grains, oilseeds and special crops.

Special Crop, Oilseed Output Sinks

Production of the major pulse and specialty crops sank 46% from last year to 4.558 million metric tons (MT), its lowest level since 2007. With the exception of white beans, output of all pulses and specialty crops was down over last year.

Canola production decreased by 35.4% nationally to 12.6 million MT, its lowest level since 2017, as the drought in Western Canada resulted in the lowest yield since 2007. Yields decreased by 40.2% to 25.0 bushels per acre, offsetting higher harvested area (+8.2% to 22.3 million acres).

In Saskatchewan, canola production was down 45.4% to 6.0 million MT, driven by lower yields (-48.5% to 22.0 bushels per acre) offsetting higher harvested area (+6.2% to 12.0 million acres).

Canola yield in Alberta decreased by 31.1% to 27.7 bushels per acre, while harvested area rose 16.3%, resulting in a 19.9% production decrease to 4.2 million MT compared with 2020.

In Manitoba, canola production fell 28.2% to 2.3 million MT. Harvested area increased by 0.3% to 3.4 million acres, while yields fell 28.3% to 29.7 bushels per acre.

Soybean production decreased by 1.4% nationally to 6.3 million MT in 2021. A 5.6% decrease in yields offset a 4.5% increase in harvested area. Lower national production was largely driven by lower yields in Manitoba, owing to drought conditions throughout the growing season.

Ontario soybean production rose 4.4% to 4.1 million MT on higher yields (+1.8% to 51.6 bushels per acre) and higher harvested area (+2.5% to 2.9 million acres).

In Manitoba, soybean production fell 17.1% to 963 800 MT, despite a 14.1% increase in harvested area to 1.3 million acres. Yields were down 27.3% to 27.1 bushels per acre as a result of poor growing conditions.

Soybean production in Quebec fell 5.0% from 2020 to 1.1 million MT. The decrease in yield (-8.7% to 44.2 bushels per acre) more than offset a 4.1% increase in harvested area.

Total Grain Output Down Sharply

Canada's total wheat harvest fell 38.5% to 21.7 million MT because of lower production in the Prairies. Yields averaged 33.3% lower at 34.8 bushels per acre and harvested area fell 7.7% at 22.8 million acres.

In Saskatchewan, wheat yields decreased by 43.4% to 26.0 bushels per acre, while harvested area decreased by 8.3% to 11.7 million acres, resulting in a 48.1% drop in wheat production to 8.3 million MT.

Both yields (-38.4% to 34.4 bushels per acre) and harvested area (-7.5% to 6.7 million acres) decreased in Alberta, resulting in a 42.9% decrease in production to 6.3 million MT.

In Manitoba, wheat production was down 28.9% to 3.8 million MT. Yields decreased by 21.9% to 47.9 bushels per acre, while harvested area fell 8.9%.

Nationally, the total corn for grain production rose 3.1% to 14.0 million MT in 2021. Harvested area fell 1.3% to 3.4 million acres, while yields rose 4.4% to 160.2 bushels per acre.

Ontario farmers reported that harvested area decreased by 0.5% to 2.1 million acres in 2021. The decrease in harvested area was offset by higher yields, which rose 6.9% to a record-high 175.2 bushels per acre, bringing production up 6.4% from 2020 to 9.5 million MT.

Corn for grain production in Quebec was up 4.7% from 2020, to 3.4 million MT. Harvested area fell 0.6% to 882,300 acres, while yields rose 5.5% to 152.6 bushels per acre.

Barley production fell 35.3% to 6.9 million MT in 2021. While harvested area rose (+6.9% to 7.4 million acres), yields fell (-39.5% to 43.0 bushels per acre) because of dry conditions in Western Canada.

Total oat production decreased by 43.0% nationally to 2.6 million MT, on lower harvested areas (-15.4% to 2.7 million acres) and lower yields (-32.6% to 61.5 bushels per acre).

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