SUPPLEMENT TO ONTARIO FARMER AND WESTERN PRODUCER

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MESSAGE FROM THE EXECUTIVE

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MESSAGE FROM THE EXECUTIVE

TO MEMBERS OF CANADA’S AGRICULTURAL COMMUNITY:

As producers, you want to make gooddecisions on the land where you live. What arethe best practices you can apply to maximizeyour economic returns? Determining what is“best” is becoming a little more complicatedthan it used to be.

The face of agriculture in Canada is changing.The public is taking a growing interest infarming practices and is demanding environ-mental accountability. We are seeing an increasein federal and provincial emphasis on environ-mental issues through the Agricultural PolicyFramework and the goal of national environ-mental farm plans.

Are there ways to combine what is “best”for an individual farm and for the quality ofthe environment? Yes, there are, but farmersneed the facts.

The Crop Nutrients Council (CNC) is helpingto move the agriculture industry forward, in acollaborative effort that brings together cropproducers, nutrient suppliers and governmentsto ensure that farmers have the informationthey need to make good choices.

CNC members include livestock and cropproducers, fertilizer manufacturers and distri-butors, conservation groups and federal andprovincial agencies. Our mission is to promotescience-based Beneficial Management Practices(BMPs) for crop nutrients that enhance thesustainability — both economic and environ-mental — of agriculture.

A key force behind CNC’s formation inMay 2003 was to provide a forum where allmembers of the nutrients value chain couldcome together to discuss nutrient managementpolicies, provide an industry voice to assistgovernments in policy development, and tohelp provide information to crop producers.

Together, we have already come a long way.The Council has fostered communication andco-operation among the various sectors ofour membership, and encouraged researchin support of BMPs. We’ve held a number ofconferences where issues have been raisedabout nutrient management. We have achieveda great deal of consensus on the kinds ofBMPs that are the most important, and onsome of the principles for how they shouldbe promoted.

An example of that are the numerousBeneficial Management Practices brochuresand articles available from our Web site,www.cropnutrients.ca. We encourage you tospend some time on the site, which is anexcellent source of information for producersand other people involved in the agricultureindustry.

This supplement brings a message directly toproducers to help them make better decisionsabout adopting BMPs. For the first time, wehave concrete, reliable information about thebottom-line effects of BMPs — from farmersthemselves.

The Crop Nutrients Council wanted to findout why some farmers chose to use certain

BMPs and why others didn’t. A groundbreakingsurvey commissioned by CNC has discoveredfrom the experiences of agricultural producersthat BMPs can both protect the environmentand make farming more economically successful.You can read details of the survey’s findings here,and find out more at www.cropnutrients.ca.

We would like to acknowledge the financialsupport we have received from Agricultureand Agri-Food Canada through the AdvancingCanadian Agriculture and Agri-Food (ACAAF)Program. We are grateful to the many producers,researchers, agronomists and federal andprovincial officials who have volunteered somuch time and expertise for this project.

The use of nutrients is essential to Canadianagriculture and the production of wholesomefood. Farmers who use Beneficial ManagementPractices protect the environment by applyingnutrients at the right rate, at the right timeand in the right place.

It’s a good-news message that supports whatwe already know — farmers care about theenvironment and are doing a good job ofmanaging their operations in an environmentallyfriendly manner. Through better informationand appropriate incentives, we can collectivelyimprove the adoption of BMPs and promoteagriculture practices that are both environ-mentally and economically sustainable.

Executive CommitteeCrop Nutrients Council

Crop Nutrients Council — Working TogetherTo Benefit Farmers and the Environment

Thank you to Our Sponsors

What is a Nutrient BMP?Beneficial Management Practices ensure that crops get the nutrients they need whileminimizing losses to the environment. BMPsenable farmers to apply fertilizer, manureand compost at the right rate, right time andright place.

With a foundation in scientific research,BMPs help to manage the application ofnutrients to protect the environment whilemaximizing crop yields and economic returns.

BMPs are developed and recommended byuniversities, by industry associations such asthe CNC and by governments. For example, thefederal government has defined 30 distinctBMPs. They are recommended in Agricultureand Agri-Food Canada’s National Farm Steward-ship Program, part of its Agricultural PolicyFramework (www.agr.gc.ca/env).

Farmers need flexibility to select the BMPsbest suited to conditions on their farms. Everyfarm and field is different. Factors that influence

BMP selection include soil conditions, climate,topography and the crop grown.

BMPs are intended to be adaptable to thespecific circumstances of a given farm. A grainand oilseed farm in Saskatchewan, for example,will conduct soil testing differently from avegetable farm in Quebec. Most producers learnfrom experience what works best on their farm.

This publication focuses on BMPs that arerelated to crop nutrient management. Thereare other farming practices that could also beconsidered as BMPs, such as improved grazingand wintering site management for cattleproduction.

The Big PictureBMPs can be small things you do every day, orthey can be large-scale changes to your operation.

BMPs are often part of a nutrient manage-ment plan. A nutrient management plan, inturn, can be an important component of anenvironmental farm plan.

An environmental farm plan, like a BMP, is

a voluntary and confidential process used by

individual farmers. It enables them to identify

environmental risks and benefits from their

farming operation, and to develop an action plan

to mitigate the risks. Producers who develop

such plans may be eligible for technical and

financial assistance from governments.

Environmental and Economic BenefitsMany of the practices that farmers use to

control the cost of nutrient application also

protect water quality and environmentally

sensitive areas and improve wildlife habitat.

Crops that receive proper amounts of nutrients

are healthy, fast growing and produce vigorous

root systems that are more efficient at using

nutrients and moisture. They also develop a dense

canopy that protects the soil surface from wind

and water erosion and evaporation, minimizing

impacts on soil, water and air quality. Healthy

growing crops are also better able to tolerate

pests, poor weather conditions and other stresses.

By maximizing returns on available farmland,

producers are able to protect environmentally

sensitive areas, grasslands, forests and wildlife

habitat from development for agricultural

production.

Research conducted under the auspices of

the Crop Nutrients Council is beginning to

demonstrate how BMPs can improve farm

profitability. Details can be found later in this

supplement.

Where to FindInformation/ResourcesThe Crop Nutrients Council maintains extensive

information about Beneficial Management

Practices, as well as a Crop Nutrients Virtual

Library, at www.cropnutrients.ca.

The federal National Farm Stewardship

Program provides more information on BMPs

and how to access funding at www.agr.gc.ca/

env/efp-pfa/index_e.php?page=nfsp-pnga.

For information on the National Environ-

mental Farm Planning Initiative, please see

www.agr.gc.ca/env/efp-pfa/index_e.php.

There is a link to each individual province at

the bottom of the page.

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BENEFICIAL MANAGEMENT PRACTICES – THE BASICS

Beneficial Management Practices – The Basics

Canadian farmers are virtually unanimous inbelieving that it is important to manage

their farms in a way that protects the envi-ronment. That’s why most have adoptedbeneficial management practices.

What’s more, many farmers believe that thereare net economic benefits from employing BMPs.

These findings have emerged from a tele-phone survey of 1,000 crop farmers acrossCanada, conducted by Ipsos Reid in early 2006on behalf of the Crop Nutrients Council. Thepurpose of the survey was to gain a betterunderstanding of Canadian farmers’ attitudestoward BMPs, particularly the economic costsand benefits.

The survey clearly showed that farmers areembracing environmentally friendly practicesfor growing crops. Ninety-eight per cent ofrespondents said that protecting the environ-ment is important to the management of theirfarms. Most use at least one recommendedBMP to manage crop nutrients (fertilizer andmanure) in an environmentally responsiblemanner.

Still, there is room for improvement. Thereare challenges in the implementation of BMPsthat need to be addressed by governments, theagriculture industry and producers themselves,working together.

Use of BeneficialManagement PracticesHow well are Beneficial Management Practicesunderstood and used? The survey revealed:

• The majority of farm owners are at leastsomewhat familiar with most of the BMPsevaluated. Familiarity with these practicesis fairly consistent across regions.

• Almost all producers are using at least onebeneficial management practice. Further,a substantial portion use multiple practices.Half use two or more, four in 10 use threeor more and three in 10 use at least four ofthe practices evaluated. This implies thatproducers are receptive to adopting farmmanagement practices that are environ-mentally sustainable.

• Use of most beneficial management practicesvaries by region, as well as farm size, witha higher percentage of farms in EasternCanada typically using various practices thanthose in the West. A higher percentage of

larger farms use these practices than dothose with smaller operations.

• The main reasons for using beneficialmanagement practices are to make moreefficient use of fertilizer/manure/compostand to improve soil quality.

“This study confirms that farmers are goodenvironmental stewards, working hard to managenutrients for their crops in a responsiblemanner,” comments Brian Besley, farmer andChair of AGCare (Agricultural Groups ConcernedAbout Resources and the Environment).

The survey also found that manure is acommonly used source of nutrients onCanadian farms. About four in 10 farmers followa manure management plan. The main reasonsfor doing so are to gain more efficient use ofmanure/fertilizer, to follow a governmentmandate and/or to maximize yields. Only a smallpercentage of farmers receive any governmentfinancial incentive to assist them with their

manure management planning. Nevertheless,the majority of those using a manure plansupport the idea of government incentives.

“Manure nutrient management planningis an important practice being increasinglyadopted by livestock producers across thecountry,” says Cedric MacLeod, EnvironmentalPrograms Coordinator with the CanadianPork Council. “Not only do producers see animprovement in environmental performanceon the farm, a major driver for change, they alsorecognize that good nutrient managementkeeps costs down and profits up.”

Costs and BenefitsThe majority of users surveyed believe thatBMPs are economically viable, and have seen anet economic gain from using each practice.

Typically, those who use BMPs have witnesseda yield increase. Generally about half or moreusers think that they have experienced a yieldincrease as a result of soil testing. About four

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SURVEY REVEALS WIDESPREAD SUPPORT FOR BMPS

Survey Reveals Widespread Support for BMPs

in 10 who use minimum tillage have seen ayield increase.

More than half of those who use soil testing,or variable rate fertilization, or a nutrientmanagement plan have typically seen anincrease in operating costs. The majority ofthose using minimum tillage or no tillage,however, have seen a decrease in their costs.

BarriersWhile farmers believe there are some economicbenefits from employing BMPs, one of the mainreasons cited for not undertaking a specificBMP was the cost of adoption. Of the farmerswho were concerned about the cost of usingBMPs, about eight in 10 would like somefinancial assistance from government to

improve their environmental stewardship.Less than a fifth of those, however, think thatthe government should cover all the costs.

“Canadian farmers have been engaging inenvironmental stewardship for a long timebecause they believe it is the right thing to do,”says Bob Friesen, President of the CanadianFederation of Agriculture. “But they have beenbearing the cost of those initiatives mostly alone.

“It is time for consumers and governmentsto recognize that agricultural environmentalstewardship is a public good that benefitseveryone, so the costs must be shared byeveryone.”

The Ipsos-Reid report concluded that:

• Government needs to examine providingfinancial incentives to non-users, particularlythose with smaller operations. Whereincentives are currently available, govern-ments need to create awareness amongproducers to increase adoption of thesepractices.

• Based on producer feedback, resources thatshould be made available to producers toencourage adoption of these practices includemore government funding/assistance,detailed information on what is involvedfor adoption, workshops or seminars, aswell as support from agriculture extensionpersonnel.

About the SurveyIpsos Reid, a leading Canadian research company, conducted a telephone survey of1,000 crop farmers across Canada betweenFebruary 21 and March 15, 2006, on behalfof the Crop Nutrients Council. The results areconsidered accurate to within +/- 3.4 percentage points, 19 times out of 20.

The report is published by the CropNutrients Council at www.cropnutrients.ca.

The Crop Nutrients Council received $69,500from Agriculture and Agri-Food Canada’sAdvancing Canadian Agriculture and Agri-Food (ACAAF) Program to conduct the survey.ACAAF is a $243-million federal funding pro-gram aimed at helping Canada's agricultureand agri-food industry to capture new marketopportunities. The survey is part of a project toidentify barriers to adoption of BMPs, fundedby a $179,000 grant from ACAAF.

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BMPS – GETTING DOWN TO DOLLARS AND SENSE

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Canadian farmers are interested in usingBeneficial Management Practices, but they

need to understand the relevant costs andbenefits. The Crop Nutrients Council, workingwith the George Morris Centre, is presentingthe first-ever analysis of what the implemen-tation of a BMP means to a farm.

Founded in 1990, the George Morris Centreis a Canada-wide, not-for-profit organizationbased in Guelph, Ontario. As an independentthink tank, the Centre provides industry decisionmakers with critical information and analysis onissues affecting the Canadian agri-food sector.

Senior research associate Cher Brethour isleading a study to calculate the costs andbenefits of implementing various BMPs on a “typical” farm. Of course, every farm isunique. The project is therefore constructingrepresentative farm models, using data fromthe Ipsos Reid survey, other published studiesand provincial government enterprise budgetsfor various crops, to understand how theadoption of BMPs affects farm profitability.

The following interview with Cher Brethourgives some preliminary results from the study,which will be completed in autumn 2006.

Q. Why is this study by the George Morris Centre

important to farmers?

A. In Canada, there haven’t been any studieson the specific impact of BMPs on farm oper-ations. This is the first study of its kind. It’s calledAn Economic Evaluation of Beneficial Manage-ment Practices for Crop Nutrients in CanadianAgriculture. One of our objectives is to try tounderstand the issue from the producers’perspective, to give them more informationto make better decisions for their farms.

Q. How does your study relate to the Ipsos Reid

survey conducted for CNC?

A. We are using the Ipsos Reid survey data tobuild economic models that show how theimplementation and use of BMPs affects farmprofitability.

The reason why information from the surveyis so critical is that the data comes from the producers’ actual experiences, not fromtheoretical or secondary sources. For example,if a producer was practising soil testing, weasked in the survey: “What changed on yourfarm? Did you notice an increase in yield whenyou started soil testing, or did you notice achange in your operating costs? What was the

net impact?” We are taking the mean resultsfrom such direct sources and putting theminto our model.

When completed, our study will examinenot only the economic impact of BMPs onfarms, but also the factors that encourage ordiscourage the adoption of BMPs. We will alsoreport on the incentive programs available inCanada to help with adoption.

Q. Broadly speaking, what does your analysis

reveal so far?

A. Preliminary results from Ontario and Quebecshow that, in many cases, the implementationof BMPs improves farm profitability.

Our report will deal with seven representativetypes of BMPs: soil testing, nutrient manage-ment planning, minimum tillage, no tillage,manure management planning, variable-ratefertilization and vegetative buffers strips.

Soil testing, nutrient management planning,minimum tillage and no tillage appear to be thetop-performing BMPs. They generally produce

increases in yields and reductions in operatingcosts.

Q. Has your study reached any other preliminary

conclusions?

A. One conclusion is that, to operate mostprofitably, a farm manager needs to considerall aspects of the farm. Prosperity dependsnot just on applying best practices to opera-tions, but to the environment as well.Improving the environment on a farm overthe long term will improve its economic sus-tainability.

Another conclusion is that at least sometypes of BMPs are not affordable to manyfarms without incentives, regardless of theirbenefits. Some incentive programs alreadyexist, but the key issues for governments areto make sure that producers are aware ofthem, that there is sufficient compensationfrom those programs, that the applicationprocesses are simple and that confidentialityis maintained for producers who apply.

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BMPS – GETTING DOWN TO DOLLARS AND SENSE

BMPs – Getting Down to Dollars and Sense