HomeMy WebLinkAboutThe Wingham Advance-Times, 1984-03-21, Page 4514 - The Farm Edition, Week of March 21, 1984
Farmers urged to use
economic yield concept
Ontario farmers were urged by the Bank
of Montreal today to employ a management
concept based on maximum economic yield
as the best means of increasing productivity
and profitability in an increasingly compe-
titive agricultural economy.
"Yields are traditionally thought of in
physical terms -- bushels, tonnes, etc.,"
Agriculture Manager Peter- Hart told the
Bank's 1984 Farm Profit Outlook conference
February 29. "We think it is timely to
discuss yields in terms of profitability -- net
dollar returns per. bushel."
This concept includes increasing yield per
acre of crop, calving percentages, or wean-
ings per sow, but goes further to expanding
overall farm yield boundaries. "As well as
increasing physical yield," Mr. Hart said,
"the concept of maximum economic yield
also encompasses the need for improved
yields from marketing and the economic
management _of all aspects of your farm
operation."
Should this strive for maximum economic
yield require increased operating funds to
finance a farmer's production and marketing
plan, Mr. Hart said, operating loans would
be readily available from the Bank of
Montreal to farmers with demonstrated
skills in production, marketing and finance
management.
"If you research, plan and manage your
financial affairs as thoroughly as your
production plans," he told his audience,
"financing should be no barrier to your
achieving your maximum economic yield."
Researchers have illustrated not only that
fertilizer use can result in lower per bushel
unit production costs, but that the cost of
producing each bushel drops dramatically as
yields increase, markedly cutting break even
costs, Mr. Hart said.
and the various inputs farmers can control
through their own management practices.
Other managerial decisions that can pro-
foundly affect success or failure are using
hybrid or variety in crop selection; timeli-
ness of planting, srpaying and harvesting;
plant population and row widths, and pest
management.
"Researchers have reported some aston-
ishing crop yields," Mr. Hart said. "The
(output) barriers are truly being pushed
back."
Corn yields range from 215 to 338 bushels
per acre, with Ontario's Southwest record at
251. Soybean yields range from 63 to over
100. Winter wheat yields have broken 100
bushels per acre in our neighbouring states
of Michigan and .New York.
By reducing production inputs, Mr. Hart
said, farmers can reduce operating capital at
risk, but this also reduced their yields and
made them more heavily dependent on price
levels for profits. This only shifted risk from
the production side -- which may be much
more controllable by the farmer -- to the
marketing side -- over which he may have
much less control.
"The game is not to produce at the.lowest
cost per acre," said Mr. Hart. "The only
game is to find out at which level of output
you can achieve the lowest cost per unit of .
saleable output."
As much importance as the Bank of
Montreal attaches to the input management
of farm production, however, Mr. Hart said,
it also continues to believe that "the quick-
est and easiest ways to improve your
maximum economic yield are through
marketing options. Utilization of profitable
opportunities to forward contract and hedge
remain major methods by which .farmers can
But fertilization is only dirt examrq et-e—ipr v't,'ie prate—pe- u-nit—eredueti
illustrate the relationship between output sold."
The over -quota system provides an attractive Incentive to establishing a `certified only'
seeding policy.
Over -quota system provides
an incentive for seeding policy
In Western Canada, farmers may deliver
up to 600 bushels of over quota grain and use
the proceeds to purchase Certified seed of
wheat, oats, barley, flax or rapeseed.
Obviously, this system helps growers
move more of their crops. More importantly,
it encourages use of Certified seed - the most
important ingredient in a recipe for
vigorous, high yielding crops.
Many growers still don't take advantage
of this opportunity to 'trade' bin run grain
for high quality seed. They believe that they
can save money by hauling bin grain to the
elevator, having it cleaned, and hauling it
back yt 0 the farm for seeding.
The supposed financial advantage of this
approach is questionable. Costs of time,
trucking, fuel and elevator cleaning can add
up quickly. Growers would be better off to
just sell the bin grain, and use the proceeds
• : gged or bulk Certified seed.
even with the most thorough cleaning, it
is extremely unlikely that bin run grain will
match the quality of Certified seed. Growers
of Pedigreed seed must follow exacting
standars through every phase of production.
Representativ samples from every field are
subject to thorough testing in government
labs before the seed can be certified.
Criteria for certification include high
germination, an absolute minimum of weed
seeds, large kernel size, low disease levels,
and minimal contamination from other crops
or varieties.
Few (if any) bin grain samples are likely to
meet these standards. Quality seed is the
cornerstone of successful crop production.
When you consider the major investment in
all other inputs, it makes good sense to
protect it by planting Certified seed.
The over quota system provides an.
attractive incentive to establishing a `certi-
fied only' seeding policy. That way, growers
can .e sure ey re us'n: it's wurtly
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