Most farmers know that they are in a profession that has many hazards, including the uncertainty of the weather, which can make or break a year’s worth of work.
Nonetheless, there are times when the impact of the weather is so widespread and so devastating that they look to the government and/or agribusinesses for some help.
This year, many producers, both of grain and livestock, were hit hard by a widespread drought that may well extend problems into the next growing season.
For grain producers, one of the major difficulties to arise are those who signed forward-priced contracts on the grain they were going to grow this year. With drought conditions, many farmers didn’t see much yield, and they are in the position of not being able to meet their commitments to deliver the grain they promised.
Depending on the grain company and the contracts, there are often penalties and administration fees, meant to deter farmers from trying to capture a higher price when they have the grain on hand.
Grain prices are going up, due to demand and a lack of supply (caused by the drought), with the result it will cost farmers even more to buy those contracts out because they just don’t have the grain to deliver.
In a year like this, when a drought is hitting all aspects of the agricultural industry, grain companies need to ease up on the terms of their contracts and help out the producers.
The farmers are already facing a greatly reduced income, depending on what kind of crops they were able to take off the fields this year, and the problems of the drought may extend well beyond 2021.
Grasshoppers were bad this year, and a drought will only mean they may be even worse next year, plus there is a lack of moisture in the topsoil and subsoil, which may make seeding next spring very difficult.
If a farmer wasn’t able to take off enough grain to meet their contracts, it isn’t their fault. Perhaps they should’ve tried to ensure an “Act of God” clause in their contract (or maybe this option wasn’t even available), but the simple fact is, the farming community is the backbone of the economy in Saskatchewan, and they are in need of support.
This isn’t a selfish request so farmers can take advantage of a situation – this is a real crisis and the ripples of it are going to flow back to the businesses in the communities these farmers live near. Not only that, but grain companies must know if they are able to help a farmer today, they will be back again in the future to give them their business.
This is a time for companies to be a good neighbour and extend a hand of help. There isn’t anything that producers could do about the lack of rain, but there is something companies and communities can do to help out the people who feed the world.
