Agriculture – 2023 Challenges and Opportunities
Crop prices could decline; however, prices may rise and stay above historic averages…I know I sound like a politician. Cattle prices should remain stable since cattle numbers have been declining over the years and this liquidation appears to continue into the future. Having said this, crop prices may implode or explode if there is a settlement or an escalation of the Russian/Ukrainian war. I have a problem understanding how a conflict like this can turn the world upside down to this extent…are we that dependent on other countries for our economic wellbeing and our food security? I do believe that our supply chains are being challenged more so than food production. However, I suspect that new investments into small, localized processing facilities can enhance and streamline food processing from gate to plate.
Labour shortages continues to impact farming/ranching families. Agriculture is extremely labour intense and this impacts not only the bottom line but also creates STRESS. Perishable goods need personal attention and an awareness of your surrounding environment. Automation/Innovation are the white knights which can improve labour challenges.
It takes time and money for producers to invest in this new technology/innovation. The adoption rate for this investment is lower than expected by industry. High costs, data issues, understanding and trusting how this technology helps the farm are the major setbacks for acceptance. Without new and increased federal support programs needed to stimulate farming practices the COP27 climate conference mandates will not be achievable by Canada. Personally, I do not think that CANADA can accomplish the COP27 mandate within the required time line.
2023 started off with oil prices falling based on global economic concerns. Gasoline prices will continue to drop, however, diesel should gradually follow this trend. INFLATION and HIGH INTEREST RATES will continue feeding recession…to what degree, your guess is as good as mine. The Canadian economy will struggle with growth. I know we will overcome this challenge.
I’m confident that our Canadian farmers/ranchers will continue feeding the world abundantly with improved and innovative farming practices.
Happy New Year,
Fred
Fred@thevoiceofagriculture.ca