Farmers Continue To Watch Markets Rise

May 10, 2021

Farmers are continuing to watch the markets rise.

Brian Voth is president of IntelliFARM Inc.

"I don't think this volatility is going away anytime soon," he said. "With the tightness in the stock situation on the old crop side, really what it means is that there's no buffer for new crop and any production problems this year. I think we're going to see these higher prices stick around at least until we know what the crop is looking like by mid-summer, later summer, that sort of thing. Even at that point, it's questionable whether we actually have the ability to build balance sheets back up in one crop year anymore, just because of how tight things have gotten."

Voth believes prices will come back down to earth.

"I do think that we're in for a period of higher prices, but that said, don't get lulled into thinking the $15, $18, $20 or even $24 canola is the new norm. It's not and we will go back to normal at some point. I don't think it will end up being for the 2021 crop year."

He commented on daily limits being increased.

"Anytime any of the grains trade and close at a limit...if it closes locked at a limit, up or down, the exchange actually expands the limit for the following day...One way of adding volatility or adding range, if you want to call it that. They're increasing the range because there's obviously a lot of interest at the higher price or lower, depending on which way you go and they increase the range effectively to try and get people in or out of positions that couldn't because we ended up locked at the limit the previous day. Everyday that we close at limit, the limits will get expanded for the following day."

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Video: How farmers are protecting the soil and our food security | DW Documentary

For a long time, soil was all but ignored. But for years, the valuable humus layer has been thinning. Farmers in Brandenburg are clearly feeling the effects of this on their sandy fields. Many are now taking steps to prepare their farms for the future.

Years of drought, record rainfall and failed harvests: we are becoming increasingly aware of how sensitively our environment reacts to extreme weather conditions. Farmers' livelihoods are at stake. So is the ability of consumers to afford food.

For a few years now, agriculture that focuses solely on maximum yields has been regarded with increasing skepticism. It is becoming more and more clear just how dependent we are on healthy soils.

Brandenburg is the federal state with the worst soil quality in Germany. The already thin, fertile humus layer has been shrinking for decades. Researchers and farmers who are keen to experiment are combating these developments and looking for solutions. Priority is being given to building up the humus layer, which consists of microorganisms and fungi, as well as springtails, small worms and centipedes.

For Lena and Philipp Adler, two young vegetable farmers, the tiny soil creatures are invaluable helpers. On their three-hectare organic farm, they rely on simple, mechanical weed control, fallow areas where the soil can recover, and diversity. Conventional farmer Mark Dümichen also does everything he can to protect soil life on his land. For years, he has not tilled the soil after the harvest and sows directly into the field. His yields have stabilized since he began to work this way.

Isabella Krause from Regionalwert AG Berlin-Brandenburg is convinced after the experiences of the last hot summers that new crops will thrive on Brandenburg's fields in the long term. She has founded a network of farmers who are promoting the cultivation of chickpeas with support from the scientific community.