Turkey Farmers of Canada welcomes the federal government announcement of support for farmers, as a first step

May 08, 2020

Mississauga, ON – Turkey Farmers of Canada (TFC) appreciates the announcement made by the federal government for the $252 million emergency fund for farmers due to COVID-19, however, TFC is concerned the announcement does not fully address difficulties faced by farmers and food processors, including turkey farmers.

TFC is anticipating a substantial reduction in turkey production this year due to COVID-19. As processing plants experience reduced capacity, increased costs due to newly required health and safety equipment and practices, and reduced demand at foodservice and in some retail channels, there are direct ramifications on farm.

“While we appreciate the support by the Prime Minister and Minister of Agriculture shown for the agriculture and agri-food sector, like others, we feel this is only a first step. Additional commodity- specific programs and funding will be required to address the losses faced by the turkey value chain,” said Darren Ference, Chair, Turkey Farmers of Canada. “The structure of the funding announcement appears to have little readily available support for turkey farmers and our industry. We remain concerned about how our farmers will manage increased costs due to COVID-19 on farm.”

The $50 million buy back of surplus food will assist some areas of agriculture, but lacks specifics. We look forward to working with the government to ensure the program meets the needs of our sector and others.

While the AgriRecovery and AgriStability programs are options for producers, not all will qualify and it remains to be seen if they are effective in the context of this pandemic. COVID-19 has added to the uncertainty Canadian turkey farmers are facing, as the CUSMA implementation is close and the CPTPP is in year three of implementation.

More work needs to be done. TFC remains committed to working with the federal government to create programs that are effective for the turkey industry.

Source : Turkey Farmers of Canada

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.