Canada: Crop profits harder to find this year

Last January, Manitoba Agriculture farm management experts said that with average yields, nearly every crop looked profitable in 2023.

Grain corn was especially promising. Twelve months ago, the estimated profit from growing corn was $114 per acre.

That sort of profitability seems unlikely in 2024.

This year, Manitoba Agriculture believes corn could be a breakeven crop with estimated losses of $15 per acre.

In early January, Manitoba Agriculture released its Cost of Production Report for Crops, which suggests that potential returns for oilseed sunflowers, winter wheat, fall rye and peas could be disappointing.

For instance, Manitoba Agriculture has estimated the total cost of growing peas at $552 per acre. That includes fixed costs such as land and machinery, along with operating costs such as crop inputs, insurance and storage.

Assuming a yield of 50 bu. per acre and a price of $9.50 per bu., the revenue from the peas would be $475 per acre.

With a cost of $552 per acre and revenue of $475, the estimated return is a loss of $77 per acre.

For other crops:

· Oilseed sunflowers — Total cost, $660 per acre; revenue, $500 per acre; a loss of $160 per acre.

· Flaxseed — Total cost, $534 per acre; revenue, $400 per acre; loss of $134 per acre.

· Barley — Total cost, $561 per acre; revenue, $487; loss of $74 per acre

The outlook for the major crops is more hopeful.

For canola and soybeans, Manitoba Agriculture has estimated a small profit of $35 to $40 per acre.

Oats could also be an opportunity. The cost of production shows a net profit of $26 per acre.

In other positive news, the cost of fertilizer has dropped significantly. Last year the estimated cost for fertilizing canola was more than $180 per acre. In 2024, Manitoba Agriculture has pegged the cost at $142 per acre.

However, growers could be facing a situation that Darren Bond, a Manitoba Agriculture farm management specialist, spoke about last year, in which input and fixed costs remain relatively high but crop prices are weaker.

Bond will share more information about the cost of production estimates Jan. 4 at the South Interlake Grain Day in Clandeboye, Man.

Tags: winter wheat, Oilseed, peas, Outlook, yields, crop, costs, grain corn, sunflower, Manitoba Agriculture, barley, fall rye, estimate