Western Canada crop prices predicted to rise this year

LETHBRIDGE – Walking through his canola field, Brandon Gibb is more than pleased with the results.

“It’s been a good year for us so far, but we’re lucky to have that. I know a lot of people don’t,” he said.

With extremely dry weather hitting large areas of Alberta hard, there are a few crops, like Gibb’s, seeing good yields.

“Typically southern Alberta is the dry area and everywhere else seems to get a decent rain,” he added. “I’m just grateful this year that we’re not in that situation.”

With the high volume of crops that have been damaged or destroyed due to the dry weather, agrologists predict crop prices will rise in western Canada this year.

Some industries have already been impacted in the prairie provinces, as hay, straw and cattle prices have increased. It’s forecasted the same will happen to flax, canola, lentils and pea prices, Canada’s most prominent commodities.

“Right now I think there’s a healthy caution on pricing,” explained Stewart Whillans, general manager of grain purchaser Parrish and Heimbecker.

“Some people are anticipating if it gets dry and those yields aren’t good, prices going up. The other one is, not wanting to lock in too many tons, not knowing what those yields are going to be.”

The math is simple, he said. If production costs rise, food prices will follow—which will give farmers like Gibb the upper hand come selling time.

“It’s that gain, loss, risk reward, right? For those that don’t do well, others do well,” added Whillans.

“Seems like the prices are rallying pretty good. For us that’s great,” said Gibb.

However, he feels for his fellow farmers throughout the province that are suffering from the dry temperatures.

“It’s a horrible situation to go through, because there’s nothing you can do about it,” he explained. “You’re stuck with it. You’ve got all this money put into this crop that you just watch burn.”