Sask. crop groups exploring merger

Nov 22, 2022

Farmers have until Dec. 11 to review a consultation document and provide feedback

By Diego Flammini
Staff Writer
Farms.com

Two Saskatchewan crop groups want farmers to weigh in about a potential merger.

The Saskatchewan Wheat Development Commission (Sask Wheat) and the Saskatchewan Winter Cereals Development Commission (SWCDC) are giving farmers until Dec. 11 to review a consultation document and provide feedback.

The four-page document proposes that Sask Wheat assume the mandate of SWCDC for winter cereals, including research, advocacy, market development, grower relations and communication activities.

Sask Wheat and SWCDC

The work to get to this point started about 18 months ago, said Carol Ann Patterson, executive director of the SWCDC.

“This has been in discussion for the last year and a half amongst our board about how to approach the next five to 10 years of winter cereals acreage on the prairies,” she told Farms.com. “Levy revenue is decreasing, and we did an analysis and recognized that winter cereals acreages are decreasing.”

Winter cereals acreages are lower because of changes in crop rotation.

Winter cereals used to follow a four-year cycle. But that’s changed to a two-year cycle given improvements in crop technology, she said.

“When you have canola not being harvested until almost late September, it reduces the window for producers to plant winter cereals,” Patterson said.

SWCDC approached Sask Wheat about a potential merger.

In January 2022, at each individual organization’s annual general meeting, both passed a resolution to explore amalgamation.

Those survey results cited multiple benefits to a potential partnership, including wheat having one voice and a better use of checkoff dollars.

“It’s not an easy decision when an organization decides it has to amalgamate, but everything is being done in the best interest of producers,” Patterson said. “The levy dollars are still going to go towards research and advocacy, and Sask Wheat will continue to work with other organizations across the prairies to promote winter cereals.”

Once the deadline passes for the December consultation, the two organizations will make the results public for farmers to review prior to upcoming AGMs.

“If the results come back positive, then separate resolutions will be put forth at our respective AGMs in January in 2023,” Patterson said. “If those resolutions are passed then we will look to amalgamate at the end of the crop fiscal year, which is always July 31 in Saskatchewan.”

Video: Why Bill Gates Is Buying Up U.S. Farmland

Bill Gates made headlines for becoming the largest private farmland owner in the U.S. But he’s not the only one. Some of the wealthiest landowners including Jeff Bezos, John Malone and Thomas Peterffy are buying up forests, ranches and farmlands across the United States. Why? Watch the video to find out.

Investments in farmland are growing across the country as people, including the ultra-wealthy like Bill Gates, look for new ways to grow their money.

In 2020, Gates made headlines for becoming the largest private farmland owner in the U.S. He had accumulated more than 269,000 acres of farmland across 18 states in less than a decade. His farmland grows onions, carrots and even the potatoes that are used to make McDonald’s French fries.

“It’s an asset with increasing value,” American Farmland Trust CEO John Piotti said. “It has great intrinsic value and beyond that, it is a limited resource.”

The U.S. Department of Agriculture estimates that 30% of all farmland is owned by landlords who don’t farm themselves. Buyers often purchase land from farmers who have owned it for decades; many of whom may be asset rich but maybe cash poor.

“The economic realities for them are typical that they’ve spent their life farming,” said Holly Rippon-Butler, land campaign director at the National Young Farmers Coalition. “Their retirement, their equity is all in the land and tied up in selling land.”

Private landowners are also making a profit by utilizing the land in numerous ways. Approximately 39% of the 911 million acres of farmland across the U.S. is rented out to farmers, and 80% of that rented farmland is owned by landlords who don’t farm themselves data from the Agriculture Department shows.

“The young farmers are just as happy to lease the land because whether you are young or old, it’s a business, right?” said Thomas Petterfy, chairman of Interactive Brokers and owner of 581,000 acres.

“You go buy a farm and you put that cash rental lease in place, you’re going to be looking at about 2.5% return on your capital,” Peoples Company President Steve Bruere said.