Royal Bank says agriculture short on funding

Royal  Bank said in the past five years, growth funding for agriculture has dwindled and isn’t getting a fair share of investment from funds such as go pension plans.

The bank said agriculture and food sectors can help Canada accomplish some of its goal of attracting $1 trillion in investment over five years, but the recent track record of growth funding has been poor. 

Growth capital is needed by companies at the stage when they are operational and need to scale to be successful. 

That’s often when the most funding is needed and is beyond the ability of venture capital funds and smaller funders to provide.

“In the Canadian context, a lot of where that money is coming from would be in the early stage,” said Lisa Ashton, agriculture and nature policy lead with RBC Thought Leadership.

Royal Bank is Canada's largest bank and ought to look in a mirror when it issues reports such as this one.

Gleaning projects eligible for funding

Chatham-Kent municipality is offering $25,000 to people who will organize gleaning to harvest food for needy people.

Gleaners follow in fields and orchards that have been commercially harvested, picking up leftover produce that is suitable food.

The gleaned food goes to soup kitchens, food banks and community meal programs.

The successful applicant will be a community-focused partner who will work with local farmers and coordinate volunteers for gleaning activities.

A total of $25,000 worth of funding is available, and applications will be accepted until April 1.

Wheat breeding program seen at risk

 

Federal government budget cuts are putting Canada’s wheat breeding programs at risk, said the Canadian Wheat Research Coalition in its review of the Canadian wheat breeding innovation system.

It said the budget cuts the government has already made are especially risky for “the variety development and pre-market evaluation stages.”

And it said federal government agriculture wheat research “is an integral part” of wheat development.

“Wheat breeding is a long-term process and decisions made today will impact agriculture decades into the future,” and coalition’s report said.

“It’s clear that the status quo is not a viable path forward,” says CWRC chair Jocelyn Velestuk, the coalition’s chair and a farmer from  Broadview, Saskatchewan. 

“Our system has been incredibly productive for farmers and for the sector but it’s no longer working. Securing the future of wheat in Canada requires a reimagining of our wheat breeding innovation system,” she said.

Historically, farmer investment in wheat breeding has paid major dividends. Farmers received $33 in benefits for every dollar they invested in wheat breeding from 1995 to 2020, according to a recent study from the University of Saskatchewan. Since 2020, the coalition has committed $70.5 million to western Canadian wheat breeding programs.

“Western Canadian farmers are invested in the future of wheat breeding in Canada,” Velestuk said. “We must create a path forward that addresses research gaps, delivers field-ready varieties and protects our long-term investments.” 

I wonder how the return on federal subsidies compares with the research benefits. And why farm organizations lobby so hard for the subsidies and say so little about research budget cuts.

PED in Perth County

 

Swine Health Ontario reported an outbreak of porcine epidemic diarrhea virus at a hog finishing barn in Perth County.

 

U.S. farmers support CUSMA

 

Farmers for Free Trade is pushing back on United States President Donald Trump’s musings that separate trade deals with Canada and Mexico might be better than the Canada-U.S-Mexico (CUSMA) agreement which is up for review beginning in July.

Farmers for Free Trade is an umbrella organization for U.S. farmers.

Speaking on “AgriTalk” from the Commodity Classic meeting, Farmers for Free Trade executive director Brian Kuehle said renewing and strengthening the CUSMA is one of the most important trade priorities facing the Trump administration.

At the same time, Trump’s chief negotiator said any new deal will include tariffs.

Trump has hit Canadian steel, aluminum and autos with 25 per cent tariffs, but has exempted most Canadian products from new tariffs because they are covered by CUSMA

Veterinary subsidy program twigged

 

Ontario is twigging its Veterinary Assistance Program to include registered veterinary technicians and telemedicine services beginning April 1.

Northern Economic Development and Growth Minister George Pirie said the redesign is an important first step in strengthening the program.

There is a nine per cent increase in call rates and a 30-cents-per kilometre increase in travel allowances. Coverage is extended to telemedicine.

Bees and fish are also added to coverage.

Jason Leblond, president of Beef Farmers of Ontario, said the extensions are a critical step toward bridging the gap in ensuring beef farmers have reliable access to critical veterinary care services.

“For our sector to thrive, beef farmers need access to large animal veterinary care,” he said. “Ensuring access to veterinary services for beef farmers across Northern Ontario and other rural regions of the province has been a top priority for our association.”

Elise Wickett, Ontario Association of Registered Veterinary Technicians, said covering registered veterinary technicians’ call travel costs and telemedicine will be particularly impactful for Northern Ontario.

Loblaws sales stall, profits soar

 

Loblaws reported fourth-quarter profits of $646 million compared with $462 million for the same quarter last year.

But same-store sales inched up by only 1.5 per cent, far less than the rate of food inflation.

Yet Loblaws’ revenues increased from $14.78 billon to $16.38 billion for the quarter because it opened scores of new discount stores such as No Frills.

The company told investors that it plans to continue opening new discount stores, but this year it will open even more new Shoppers Drug Mart stores. 

It said there has been a shift in consumer demand to lower-priced items such as its President’s Choice and No Name products that compete with brand names and from organic fruits and vegetables to lower-priced conventionally-grown produce.