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Grain Farmers of Ontario calling for the ethanol misinformation to stop

GUELPH, ON (February 1, 2012) – Once again the George Morris Centre pits farmers against one another in a report falsely accusing the ethanol industry of causing harm to livestock farmers. 

Since one third of the corn used for ethanol becomes livestock feed through an ethanol byproduct called distillers grains, the effect of the ethanol industry in Ontario on our feed supply is negligible.  In fact the George Morris Centre report actually shows that livestock production has been maintained in recent years and livestock prices have been at or near record high levels despite the growth of the ethanol industry.

“There are so many examples of erroneous information in this report that I am disappointed Canadian livestock producers would choose to point a finger at the ethanol industry as the culprit for lost revenue,” says Don Kenny, Chair of Grain Farmers of Ontario.  “Many of my neighbors with livestock are also enjoying high grain prices so we are talking about the same farmers here.”

Instead of pointing fingers and placing blame, Grain Farmers of Ontario offers to work cooperatively with the livestock industry in pursuit of solutions that will raise the value of the whole agricultural industry.  Grain farmers are pleased with the recent gains in the livestock industry because the grain industry depends on a healthy livestock sector.

Corn yields in Ontario are growing at a rapid rate and without the ethanol industry to take the corn, there would be a significant glut in the market with a detrimental impact on corn farmer income.  In fact, the increase in corn production since 2000 is almost equivalent to the increased amount of corn going for ethanol production.

The George Morris Centre study states that there is unfair competition between livestock and ethanol grain buyers due to government subsidization and tariffs.  Grain farmers in Ontario are not protected from an influx of American corn by a tariff.  In addition, subsidies are not unique to the ethanol industry.

“The benefit of ethanol should be looked at from the big picture in Canada, not through the single lens of livestock production.  Let’s not forget that the 5% ethanol mandate is reducing greenhouse gas emissions by over 2 million tonnes each year,” says Kenny. “That is equivalent to taking 440,000 cars off the road.” 

Ethanol production from grain has meant a 62 percent reduction in net greenhouse gas emissions on a per-litre, per-calorie-of-combustible-energy basis. This Canadian-made fuel contains 1.6 times the energy content that is required to grow the grain. 

Grain Farmers of Ontario invites livestock farmers across Canada to work with us on a solution to increase the value of all Canadian agricultural production at the farm gate and includes all available market opportunities. 

Grain Farmers of Ontario

Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 corn, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.

Contact:

Barry Senft, CEO - 1-800-265-0550; bsenft@gfo.ca

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Grain Market Commentary for October 12, 2017

Thursday, October 12, 2017

Commodity Period Price Weekly Movement
Corn CBOT December 3.49  06 cents
Soybeans CBOT November 9.92  34 cents
Wheat CBOT December 4.30  12 cents
Wheat Minn. December 6.12  02 cents
Wheat Kansas December 4.26  10 cents
Chicago Oats December 2.62  16 cents
Canadian $ December 0.8030  0.15 points

Harvest 2017 prices as of the close, October 12 are as follows: SWW @ $183.52/MT ($4.99/bu), HRW @ $192.67/MT ($5.24/bu), HRS @ $238.89/MT ($6.50/bu), SRW @ $188.09/MT ($5.12/bu).

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Market Trends Report for October-November 2017

Monday, October 16, 2017

It is that time of year again when combines are rolling. However, uneven weather in parts of the American corn belt and Ontario has delayed harvest. There is nothing particularly unusual about this as we have it every year. US crops are huge coming off the fields and the market will certainly be making further adjustments. The final determinant on yield will come in the January USDA report. However, the October USDA report released October 12th helped to re-focus the trajectory of grain prices as we head into the end of the 2017.

In the October 12th report USDA increased US national corn yield to 171.8 bushels per acre, an increase of 1.9 bushels per acre over their September estimate. This put 2017/2018-corn production at 14.28 billion bushels on the high-end of pre-report estimates. The USDA also pegged corn-ending stocks at 2.34 billion bushels, which was up 5 million bushels from their September estimate. This number was a bit of a surprise especially with which dry weather throughout the American Midwest the summer.

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USDA estimated soybean production to be at 4.431 billion bushels, which was a decrease from their September estimate. This was based on a .4 bushel/acre cut in US national yield down to 49.5 bushels per acre. However, the US soybean harvested acreage is at a record high of 89.5 million acres, which was up 1% from the USDA September estimate. The US domestic soybean ending stocks were also pegged at 430 million bushels, which was down 45 million bushels from their September estimate. This was generally looked at as bullish on report day and soybeans responded by going up $.26 a bushel. US domestic wheat stocks were set at 960 million bushels, which was 27 million bushels higher than their September estimate.

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