Farmers take a hit from low soybean yields, due to drought
It has been a tough year for area farmers, according to John Taylor, owner of Collwest Grain.
“It was a great wheat crop but with so little rain through the last part of June right into August, soybean and corn crops have really been affected.”
Taylor says in a typical year, farmers can expect 50-55 bushels per acre of soybeans. On his farm north of Creemore, he got 33-34 bushels per acre this year. With yields down by half, or even two-thirds, and commodity prices depressed due to oversupply on the world market, many farmers are down about $300 per acre or more in lost revenue.
“Right now we’re getting $14 per bushel for soybeans,” said Taylor. “Three years ago, the price was $17 per bushel.”
At that price, and with a healthy crop, Taylor says the yield was about $1,000 per acre, while this year, it’s closer to $500.
Farming has always been an exercise in faith. Taylor says plans are made through the winter, and each spring, farmers commit to costs for seed, fertilizer and land rent. Those expenses can total $300 to $400 per acre. Weather is the big unknown, with the impact only being fully realized at harvest.
“I don’t see a lot of local farmers in big trouble yet,” said Taylor. “We’ve had four or five good years, but just like everyone else, if a farmer makes a dollar, he spends three. My dad always said if you want to support the economy, give money to farmers because for sure they’ll spend it.”
Collwest has locations in Collingwood, Meaford and Dundalk and markets grain for farmers throughout Simcoe and Grey counties. It employs five Taylor family members and three truckers. Taylor explains, “We make money handling grain, so much per ton, so with volume down substantially, so is the income.”
From the three local depots, some is loaded into containers bound for China and Malaysia. Lots of it goes to Hamilton to be loaded onto boats there, and some wheat goes to local flour mills. They used to supply all the wheat to the distillery in Collingwood (Canadian Mist) prior to an ownership change in 2020.
Taylor says it was apparent early in the season that yields would not be good this year, so crop insurance claims were filed early.
“They work on a five-year average, and depending on your coverage you can get compensated to 80 or 90 per cent of the typical yield. But,” he says, “not everyone carries crop insurance.”
“In a normal year, we’d be right in the middle of the soybean harvest right now, but I finished taking mine off last week,” says Taylor. “The next thing is the corn. Some think it might be even worse than the soybeans but we won’t know for a couple more weeks.”
For now, local farmers are making the best of a bad situation, and clinging to hope for better conditions next year.
Trina Berlo photo: Soybeans yields are down by at least half.
