Thank you.
My name is Mark Kaun. I'm a third-generation farmer on the land that I own. I produce wheat, barley, peas and canola—a rotation of crops for the best agronomic practices for minimum disease issues and maximum yield.
I have a GPS precision farming practice of variable rate technology for seed and fertilizer, sectional control of herbicide application to maximize my return on investment and to minimize the environmental impacts. Yield data is collected digitally at time of harvest to build fertility maps for the next year's seed, and fertility variable rate maps.
We have practised minimum tillage for over 30 years.
In our operation, we use consultants for agronomy, fertility and grain marketing.
All seed is treated for soil-borne pathogens. In the case of canola seed, we use up-to-date genetics with resistance to blackleg and clubroot.
I'm a graduate of Olds College, in crop production. I am currently serving in my second term on the board of governors of that college.
I carry an Alberta environment licence to apply agricultural herbicides and seed treatments. I have over 40 years in seed production experience in wheat, barley, peas and canola. I was an authorized seed cleaner and seed grader under the CFIA and the Canadian Seed Institute.
The situation today is that I am holding 500 metric tons of unpriced 2018 crop on my farm. My 2018 production was just over 600 metric tons. My first 100 metric tons was contracted in the summer and sold and delivered in November for $11.30. The first week of February, prices seen were around $11 and I was getting ready to sell the rest of my crop. Then 10 days later, my crop was worth a dollar a bushel less, at the minimum—a cost of $25,000 to my bottom line.
Changing cropping plans really doesn't work to maintain the best agronomic practices in this spring. Canola seed has been purchased. I have 50 bags waiting in the warehouse at $600 a bag. Fertilizer has been bought and booked. Switching to other crops is hard, because cereal seed is in short supply in Alberta. Storage of last year's crop will be tricky. Some of the canola has a green count to it and it is susceptible to heating in the bins. I would like to move that as soon as possible. I don't have room to carry two years of production in my storage facilities. Cash flow is needed for all farmers.
Changing seeding plans impacts seed retailers. Seed purchases are made in January and February and are booked for May. I would hate to phone my seed supplier and tell him that I don't need that $25,000 of seed—now what would he do with it? Then 15 other farmers phone him to do the same thing.
As a Canadian producer, I take pride in producing safe, clean products for export around the world. I have never had a contamination issue with any of my products. I have never been turned away at an elevator.
Unknown factors such as this situation are not foreseeable and cause great disruption in our operations, impacting future production and farm finances. If I were to be hailed out, I have insurance for that. If my canola has not been able to be hauled or delivered, I have no insurance for that.
The diversification of our markets needs improvement. Government intervention is needed and pressure is needed to be put on more forcefully.
Canadian canola is contaminated. It's contaminated with political dirt and bureaucracy. No pathogens or weed seeds are in our canola.
Thank you for your time.