Crop production yields expansion
Fellow farmer Trevor Biemans, 24, agrees that movement is due to the quantity.
"People are quick to point the finger at the rail, but with the quantity of grain we have now you'll see pressure from different groups," says Biemans, "In general yields have been good the last three years. More technologies than even 10 years ago with better genetics, but we're at the mercy of mother nature."
Average yields are expected to continue to increase as years go on says Wright, but this year will go down as one of exceptional yields.
Farmers such as Biemans have been helping on the farm since their early teens and know the ebb and flow of the business.
"Things are getting better, but still have chances, there's definitely a bit of luck in this business." ■
In recent years many elevators in southeastern Alberta and southwestern Saskatchewan have been upgrading and expanding. Kyle Jeworski, president and CEO of Viterra, says they are not done re-investing.
"We're seeing a lot of changes in our farmer base, increased productions, and demands of infrastructure. We're committed to improving our operating efficiency," Jeworksi says.
Viterra has expanded elevators in Gull Lake, Sask., and plans to do the same in Grassy Lake, Alta. Viterra plans to add two 7,000-tonne steel storage bins, upping capacity to 36,500 tonnes.
"The bar has now been raised for future production levels and we need to be ahead of the curve. The bar has been raised because of better agronomic practices, disease resistance and crop genetics. We have confidence in our investments,
we've operated with farmers for almost 100 years, this is not a new area for us."
Viterra plans to spend $34 million in western Canada to upgrade and expand it's grain handling abilities.
Parrish & Heimbecker expanded their Bow Island elevator last year. Location manager John Noble says the expansion is a result of greater crop production.
"We expanded last year because we didn't have enough space to work efficiently. Yields will continue to increase with better technology, with fewer and fewer elevators they need to be bigger and bigger," says Noble. He says their goal is to be able to load 112 railcars at once.
Other companies are also expanding. Paterson Grain expanded their Dunmore elevator in 2012. The four additional 6,500-tonne steel bins boosted their total capacity to 55,000 tonnes. ■
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