Overview of Canadian Agriculture Economics

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Derek Brewin, Agribusiness and Agricultural Economics,
University of Manitoba
2019 Summit on Canadian Soil Health, Oak Hammock Marsh
Manitoba, October 2, 2019
87 million tonnes of grains and oilseed.
21 MT of Flour, 9 MT of Canola Oil, 20 MT of Feed
 
 
 
 
 
 
 
 
Profit = Yield*P(output) –Input*P(input)
Input has a diminishing impact on Yield
With lower output prices optimal level of
input will drop
With higher input prices optimal level of input
will drop
Recent price trend points to lower fertilizer
application – more demands on current stock
of nutrients
Consumers Incomes/Preferences are the real
demand on the soil
Soybean/Corn rotation is on the rise and
rotation is part of the optimal economic choice
As margins get tighter (lower grain prices and
higher input) nutrients will be reduced.
Hazel, Yiting Li, Rally Liu and Sabrina
Reza, Dr. Yvonne Lawley, Project Leader
and other research collaborators
These projects are funded by:
Manitoba Corn Growers
Manitoba Pulse and Soybean Growers
Western Grains Research Foundation
Canada and Manitoba governments
through 
Growing Forward 2
, a federal-
provincial-territorial initiative
FAOSTAT – World Production Database.
Kubinec, A., 
https://www.masc.mb.ca/masc.nsf/mmpp _crop_rotations.html
Manitoba Ag -  Guidelines for Estimating Crop Production Costs
MASC MMPP 
https://www.masc.mb.ca/masc.nsf/
mmpp_crop_rotations.html
MASC MMPP  
https://www.masc.mb.ca/masc.nsf/ym_
crop_rotation_break_interval_effect.pdf
North Dakota State Wheat Nitrogen Calculator:
https://www.ndsu.edu/pubweb/soils/wheat/
Stats Canada - Census of Agriculture and 
International merchandise trade,
by commodity, price and volume indexes.
Sukalanda, MSc Thesis, unpublished, 2018, U of Manitoba
Slide Note

Hi All;

Many thankago Jim Tokarchuck for this invitation – Jim and I worked for the PFRA – a civil service that had a focus on soil conditions. And there was a lot to worry about back when a third of the land was in summer fallow. And Grain prices were generally low.

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Derek Brewin from the University of Manitoba presented valuable insights at the 2019 Summit on Canadian Soil Health. The presentation covered details on the production of grains and oilseeds, operating costs, market prices, average yields, and net returns per acre for various crops such as spring wheat, oats, canola, soybean, and corn over four consecutive years. The data provides a comprehensive analysis of the agricultural landscape in Canada.

  • Canadian agriculture
  • Economics
  • Grains
  • Oilseeds
  • Derek Brewin

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  1. Derek Brewin, Agribusiness and Agricultural Economics, University of Manitoba 2019 Summit on Canadian Soil Health, Oak Hammock Marsh Manitoba, October 2, 2019

  2. 87 million tonnes of grains and oilseed. 21 MT of Flour, 9 MT of Canola Oil, 20 MT of Feed

  3. SPRING WHEAT OATS CANOLA SOYBEAN CORN Total Operating Costs ($ per acre) Market Price ($ per bu.) Average yield (bu. per acre) Net returns ($ per acre) $201.36 $6.40 55 $150.64 $161.53 $2.98 100 $136.47 $256.98 $10.89 40 $178.62 $196.66 $10.48 35 $170.14 $315.88 $4.85 115 $241.87 Year 1 Wheat Canola Wheat Corn Corn Source: Sakulanda Year 2 Wheat Canola Canola Soybeans Corn Year 3 Wheat Canola Wheat Corn Corn Year 4 Wheat Canola Canola Soybeans Corn Average Return $97.84 $113.28 $176.86 $227.21 $169.36

  4. SPRING WHEAT OATS CANOLA SOYBEAN CORN Total Operating Costs ($ per acre) Market Price ($ per bu.) Average yield (bu. per acre) Net returns ($ per acre) $201.36 $6.40 55 $150.64 $161.53 $2.98 100 $136.47 $256.98 $10.89 40 $178.62 $196.66 $10.48 35 $170.14 $315.88 $4.85 115 $241.87 Year 1 Wheat Canola Wheat Corn Corn Source: Sakulanda Year 2 Wheat Canola Canola Soybeans Corn Year 3 Wheat Canola Wheat Corn Corn Year 4 Wheat Canola Canola Soybeans Corn Average Return $97.84 $113.28 $176.86 $227.21 $169.36

  5. Year 1 Year 2 Year 3 Year 4 Year 5 2005 31.90 22.42 12.00 16.37 22.71 23.67 14.59 8.53 18.17 16.88 23.37 2006 17.60 104.81 250.54 220.24 104.05 328.29 353.57 360.67 200.81 171.55 196.26 176.03 6.90 91.65 254.47 198.21 96.07 308.08 341.43 349.31 186.11 163.23 189.00 176.94 1.97 98.48 261.03 192.42 84.96 320.72 352.06 361.69 169.15 160.39 185.67 170.44 6.93 100.91 238.70 204.86 85.50 323.32 344.74 352.83 176.11 157.31 180.67 157.09 14.99 89.81 252.81 205.05 93.48 299.84 316.07 326.22 179.31 157.56 181.50 165.76 4.75 76.41 219.29 195.82 93.31 282.20 309.95 315.28 189.23 149.91 174.12 159.64 14.17 99.98 261.48 204.35 84.10 315.92 326.30 338.66 163.69 156.50 179.53 159.05 3.58 86.01 262.78 185.22 80.42 296.19 317.96 329.96 157.30 150.81 175.39 163.69 1.91 85.95 260.98 187.05 93.26 299.36 338.14 346.62 179.33 160.87 187.49 180.60 9.88 84.54 242.07 195.41 85.65 290.20 305.76 315.74 168.97 149.11 172.33 156.25 15.69 28.39 43.49 35.02 23.63 46.09 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Soybean Corn Soybean Corn Canola Soybean Corn Soybean Corn Canola Corn Soybean Corn Corn Soybean Corn Soybean Corn Wheat Corn Soybean Corn Soybean Soybean Soybean Corn Soybean Corn Wheat Corn Soybean Corn Soybean Corn Canola Wheat Corn Canola Soybean Corn Corn Wheat Soybean Corn Soybean Diff 47.80 46.41 43.51 22.44 23.93 20.69

  6. Profit = Yield*P(output) Input*P(input) Input has a diminishing impact on Yield With lower output prices optimal level of input will drop With higher input prices optimal level of input will drop Recent price trend points to lower fertilizer application more demands on current stock of nutrients

  7. Consumers Incomes/Preferences are the real demand on the soil Soybean/Corn rotation is on the rise and rotation is part of the optimal economic choice As margins get tighter (lower grain prices and higher input) nutrients will be reduced.

  8. Hazel, Yiting Li, Rally Liu and Sabrina Reza, Dr. Yvonne Lawley, Project Leader and other research collaborators These projects are funded by: Manitoba Corn Growers Manitoba Pulse and Soybean Growers Western Grains Research Foundation Canada and Manitoba governments through Growing Forward 2, a federal- provincial-territorial initiative

  9. FAOSTAT World Production Database. Kubinec, A., https://www.masc.mb.ca/masc.nsf/mmpp _crop_rotations.html Manitoba Ag - Guidelines for Estimating Crop Production Costs MASC MMPP https://www.masc.mb.ca/masc.nsf/ mmpp_crop_rotations.html MASC MMPP https://www.masc.mb.ca/masc.nsf/ym_ crop_rotation_break_interval_effect.pdf North Dakota State Wheat Nitrogen Calculator: https://www.ndsu.edu/pubweb/soils/wheat/ Stats Canada -Census of Agriculture and International merchandise trade, by commodity, price and volume indexes. Sukalanda, MSc Thesis, unpublished, 2018, U of Manitoba

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