Seed of an Idea Wayne Gale Looks Beyond Ag for Template to Transition Business 8

They’re living together. Should they marry?  18 | Handing sales to India  51

western EDITION / COUNTRY-GUIDE.CA / february 1, 2017

Seed of an idea Wayne Gale looks beyond ag for template to transition business 8

Halal on the plate More farms target halal meats, but demand far outstrips supply 28

CROPS GUIDE Are you sure you’re getting great crop advice? 40 2017 could be the year for feed barley 42

Publications Mail Agreement Number 40069240 B:8.625” T:8.125” S:7”

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BCS10686443_Luxxur_102.indd 10686443 Insert Feb 1, 2017 Lynn.Skinner 8.125” x 10.75” Alex.Van Der Breggen 1 8.125” x 10.75” Noel.Blix -- 7” x 10” -- 100% 8.625” x 11.25” 2 Monica Van Engelen Production:Studio:Bayer:10...ls:BCS10686443_Luxxur_102.indd Bayer None Helvetica Neue LT Std, Gotham Country Guide 12-23-2016 1:18 PM None 12-23-2016 1:18 PM -- Henderson, Shane (CAL-MWG) -- Cyan, Magenta, Yellow, Black -- -- 6 MACHINERY Fastrac evolution Redesign keeps these tractors roadable at 70 km/h, while boosting their competitive in-field performance. Insidecountry guide / Vol. 136 Issue no. 2 / FEBRUARY 1, 2017

Business 14 seven steps to better business These corporate strategies could help drive your farm performance to new levels.

18 living together, farming together Actually, common-law is fine, as long as you think through the possible issues.

24 game changer Diversification reduces risk for Lewis Farms, and keeps it aligned with changing markets.

40 28 the halal market Farmer-owned SunGold is venturing into halal meats, CROPS GUIDE where demand is growing. 45 what’s your cultural intelligence quotient? 35 Peola continues Making your farm a welcoming to show promise place for a changing workforce.

38 Adding nutritional 48 thinking small punch to instant The Brits are going small with noodles machinery. We may too. 8 40 When you need 51 giving our business great advice to india If we won’t grow our own 42 Halting the feed organic food, India is only Meet in the barley decline too happy to do it for us. boardroom 44 Weather 54 create your foreign exchange strategy When Wayne Gale returned home to work on the family seed Too many farmers under- business with his father John, it quickly became clear that the estimate impact of currency. father and son were equally energetic, equally opinionated, and equally ready to fight instead of compromise. Now, the strategies 56 can you count on the family used to turn their squabbling into a co-operative, Agristability? high-performance leadership team could prove a template for G LuIDE ife A lot depends on what you 60 Rural distress farms across the country that are looking to solve their own farm, and who does the work. 64 Health succession stalemates. 65 Hanson Acres 58 HR — A question 66 Reflections of charisma Be a more charismatic leader with these tips.

Our commitment to your privacy At Farm Business Communications we have a firm commitment to protecting your privacy and security as our customer. Farm Business Communications will only collect personal information if it is required for the proper functioning of our business. As part of our commitment to enhance customer service, we may share this personal information with other strategic business partners. For more information regarding our Customer Information Privacy Policy, write to: Information Protection Officer, Farm Business Communications, 1666 Dublin Avenue, Winnipeg, MB R3H 0H1. Occasionally we make our list of subscribers available to other reputable firms whose products and services might be of interest to you. If you would prefer not to receive such offers, please contact us at the address in the preceding paragraph, or call 1-800-665-1362.

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(204) 944-5765 Fax (204) 944-5562 is an “expedition” type of traveller, Glacier Farm Media President: Bob Willcox always returning home with fresh But we know that innovativeness [email protected] perspectives that lead to great is a skill. It isn’t just something that Publisher: Lynda Tityk columns, such as this month’s you’re either born with or without. [email protected] Editorial Director: Laura Rance article on organic agriculture, It’s a skill you can grow. Except... it [email protected] inspired by his stops in India. grows best in a rich soil. Research Production Director: Shawna Gibson [email protected] across many industries proves that The next email was from Edmonton- Circulation Manager: Heather Anderson area farm business adviser Art an individual’s innovation score [email protected] increases when they are engaged Lange, who offered a valuable idea Contents of this publication are copyrighted and may in and excited about their work. Yet be reproduced only with the permission of the editor. that I’ve never had anyone suggest Country Guide, incorporating the Nor’West Farmer to me before, and that I intend here too we know that engagement and Farm & Home, is published by Farm Business is one of the benefits of travel. Communications. Head office: Winnipeg, Manitoba. to follow up on in future issues. Printed by Transcontinental LGMC. Our minds are fresher and more Country Guide is published 13 times per year by Art said that our feature stories vigorous when we travel and take Farm Business Communications. Subscription rates in are excellent for portraying the Canada — Farmer $45 for one year, $67 for 2 years, $95 for time off, and this pays dividends in 3 years. (Prices include GST) U.S. subscription rate — $35 work ethic and the dedication our performance when we return. (U.S. funds). Subscription rate outside Canada and U.S. — of today’s farmers. $50 per year. Single copies: $3.50. Innovation scores increase But, he asked, are the farmers too when individuals develop that we write about all work and new networks and make new Publications Mail Agreement Number 40069240. no play? “I urge you and your connections, which is what happens We acknowledge the financial support of the Government writers to include information of Canada through the Canada Periodical Fund of the when we travel. Sometimes that’s Department of Canadian Heritage. about the work-life balance of because we meet farmers from the people in all the articles that other regions, or because we meet you are writing about,” he said. Canadian Postmaster: Return undeliverable Canadian travellers from other industries, or addresses (covers only) to: Circulation Dept., It’s a great suggestion. We should simply because we see how smart PO Box 9800, Winnipeg, Manitoba R3C 3K7. people in other countries have U.S. Postmaster: Send address changes and be recognizing that a healthy undeliverable addresses (covers only) to: attitude to work-life balance is come up with their own solutions Circulation Dept., PO Box 9800, essential to a healthy business, to the problems we all share. Winnipeg, Manitoba R3C 3K7. and to a well-lived life. Subscription inquiries: So if you haven’t climbed aboard Call toll-free 1-800-665-1362 As Art added, it is also essential a camel this year, or driven south, [email protected] make your plans now. Don’t U.S. subscribers call 1-204-944-5766 to a healthy family life, which is Country Guide is printed with linseed oil-based inks. not only one of the foundations worry. You can read your Country PRINTED IN CANADA of successful farming, but can Guide on our website. And I Vol. 136 No. 2 be one of its benefits as well. promise, we’ll soon be telling you www.agcanada.com ISSN 0847-9178 Body copy. how the farmers in those stories The editors and journalists who write, contribute and provide And of course the benefits opinions to Country Guide and Farm Business Communications obtain their work-life balance. attempt to provide accurate and useful opinions, information sfsdfsdkjfdsjfksdjis go even deeper than that, as and analysis. However, the editors, journalists, Country Gerald, Art and many others, Are we getting it right? Let me know Guide and Farm Business Communications, cannot and do Are we getting it right? Let me know at tom. not guarantee the accuracy of the information contained in including work psychologist and at [email protected]. this publication and the editors as well as Country Guide [email protected]. and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.

4 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA You might think that when nitrogen fertilizer is in the ground, it’s safe. Research suggests you need to think again. When shallow banding unprotected urea less than two inches deep, researchers found that nitrogen loss due to ammonia volatilization can be even greater than unprotected broadcast urea. Protect your nitrogen while maintaining the operational efficiencies of side banding or mid-row banding at seeding by using AGROTAIN® DRI-MAXX nitrogen stabilizer. Whether you choose to band or broadcast, you’ll be confident that you’re protecting your nitrogen investment, your yield potential and your return on investment.

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643A-1501B Shallow Band Ad AGROTAIN 8.125x10.75.indd 1 12/5/16 2:08 PM machinery Fastrac evolution JCB redesigns the 8000 Series Fastrac tractor

By Scott Garvey CG Machinery Editor

ll eyes were on a stage in JCB’s Rocester, England world headquarters building in October as a few dozen ag journalists Afrom several different countries gathered for the reveal of the company’s all new 8000 Series Fastrac tractor. As is usually the case with events like this, no matter what the brand, the unveiling was accompanied by flashing lights, loud music, and speeches from proud executives. Back in 1991, U.K.-based JCB ventured out of the light construction equipment sector it was familiar with and into the crowded ag tractor market, but not with a me-too design. Instead, it went to market with a novel machine that could head out into a field and perform like a regular tractor, but could also haul loads and travel down the road almost as fast as a truck. It was the birth of the Fastrac. Now, 25 years later, JCB has totally rede- signed its flagship 8000 Series models. About two years ago, the company also retooled its smaller 4000 Series tractors, giving them, among other things, a new, more comfortable cab. That same cab shows up again on the new 8000s. With its previous 8000 Series lineup, JCB had ventured away from the equal- wheel design with a rear deck that had Photo: JCB defined the Fastracs since their 1991 introduction, building them to look more like a Top to bottom: Unveiled at JCB conventional front-wheel assist tractor. But world headquarters in Rocester, this latest redesign brings them back to that England, the new 8000 Series typical Fastrac configuration and in line Fastracs return to typical Fastrac with the smaller 4000 Series. (nearly) equal-wheeled The two new models that now make up configuration. the 8000 Series get a boost in horsepower over the previous models too, so they now The new 8000 Series tractors get ttGarvey

the same cab that was introduced o

offer horsepower ratings of 280 in the 8290 c two years ago on the smaller 4000s. and 335 in the 8330. The tractors keep that S y: h p

70 km/h roading ability that still rates them The new 8000 Series offers higher r g among the fastest on the road today. horsepower ratings and features to

The 8000 Series represents “a brand new improve in-field performance. Photoa

6 FEBRUAry 1, 2017 / COUNTRY-GUIDE.CA chapter” in Fastrac development, according by adding a single, rear deck-mounted to JCB executives. weight, which can be lifted on and off with “The Fastrac is as capable in the field as a front-end loader. That makes it one of the it is on the road,” said Tim Burnhope, chief few ballast options on the market today that innovation and growth officer at JCB, refer- is relatively easy to add and remove right on ring to the 8000’s overall features package. the farm. The earliest Fastracs weren’t really The new 8000s keep the air-over-hydrau- praised for their in-field performance while lic braking system that allows them to pull doing heavy draught work. But it’s clear truck trailers, mating to trailer brakes with after spending a day in the field with the rear air line connections. Combine that with new tractors that this criticism no longer the tractor’s four-wheel disc brakes and ABS applies. They offer features and capabilities and you get a machine that can pull a lot that make them capable field machines, and of weight down the road very fast and very getting farmers to consider them for that safely, something you don’t get by hitching job is now a focus for JCB’s North American a regular high-horsepower tractor to a semi marketing staff. trailer and just caging the trailer brakes to The engine and transmissions are from allow it to move. New bronze-graphite bearings on the AGCO, so their parts availability stretches The tractors also abandon the pre- telescopic arm of the TM320 are well beyond dedicated JCB dealers. An 8.4 vious mechanical steering linkage for a designed for longer life. litre SISU (AGCOPower) diesel mates to a new, hydrostatic dual-steer system. Two programmable Fendt CVT transmission. independent fluid circuits provide a fail- That allows the engine management system safe system in the event of a failure in one to run the tractor at the lowest possible rpm or the other, and optional Rapid Steer during field operations (or it can be set for changes the effect of steering wheel input other priorities like field speed) and to keep based on ground speed. That heightens torque where it needs to be while minimiz- sensitivity for low field speeds and reduces ing fuel consumption, even in changing field it for high road speeds. conditions. The Activ Traction feature moni- Aside from the new Fastracs, JCB also tors wheel slip and throttles down the engine announced some updates to its TM320 tele- until traction returns, then the tractor picks scopic handler and 411 and 417 AGRI wheel up ground speed again. loaders. All get Tier 4 Final diesels and cab Ph oTO: JCB Full chassis suspension not only keeps refinements. The TM320 also gets some the tractors stable at 70 km/h on the road, boom design improvements that include A new dual-system hydrostatic steering it also improves traction in the field and cylinder end dampening for smoother tele- system provides adjustable sensitivity and reduces the need for fuel-eating ballast. But scopic action along with high-tech bronze- a failsafe feature to make high-speed road the tractor’s ability to pull can be improved graphite bearings for extended life. CG travel safer.

SEEKING NOMINATIONS FOR THE 2017 Canadian Conservation Hall of Fame

Nominees can be anyone who is a proponent of Canadian soil conservation and health and has made a signiﬁ cant national contribution to the health of Canadian soils. For further information or to make a nomination visit soilcc.ca or email [email protected]. Nominations close February 28, 2017.

[email protected] 204-792-2424 www.soilcc.ca @soilcouncil

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 7 Change Makers

Meet in the boardroom

A two-pronged plan helped create a Family Council. The organization has resources Stokes Seeds grow its business, to help you with all of these.” Gale soon found himself assigned to a peer advisory despite strong personalities group made up of people around his own age who were within the family all in second- or third-generation family businesses, meeting once a month. “It was like a support group, working through family and business issues,” Gale says By Angela Lovell now. “We relied on each other for advice.”

ayne Gale never forgot something he Professional, Third-Party Advice heard at a seminar 20 years ago, just Then, thanks to a recommendation from one of the peer after he had made the decision to enter group members, Gale hired a family business consultant the family business and work with his who helped him and his dad develop a strategic plan for Wfather. “When there are only two people running a busi- the company, and establish an advisory board. ness,” the speaker said, “it’s an argument.” “He also helped us figure out a plan for how we both So what do you do when you have two smart, opin- would fit into the business,” says Gale. “He went to Dad ionated, A-type personalities trying to run a business and asked him to outline 10 things he thought I should together, especially when they also happen to be father do in order to know the business. Then he asked me and son, with all the additional dynamics that come to outline 10 things I wanted to do in the business. He along with that? brought us the two lists and said, ‘Wayne, you work on The Gales’ answer was to tackle the problem like two accomplishing your dad’s list and John, you work at pro- strong, opinionated, A-type personalities. viding Wayne these opportunities.’” They got Wayne into a peer advisory group, and they They also set to work on that advisory board, and also formed an advisory board to not only give them after interviewing six applicants, the Gales settled on impartial advice from people outside of their family- three business professionals with diverse backgrounds to owned seed company, but to help mediate some of the sit on the board, with a mandate to provide useful, third- disagreements that would inevitably arise between them party advice about different aspects of their company. as Wayne and his father John both worked to move the The advisory board met with the Gales at least three third-generation business into a new era. times a year and wasn’t afraid to give tough advice when They might not seem the kind of ideas that would it was needed. “They also had the hammer, they could spontaneously come up, especially for a father and son walk out the door,” says Gale. “They weren’t ‘yes men’ whose brainpower was already engaged pretty heav- and we definitely respected their opinion.” ily with running the business, but in a way, the ideas weren’t theirs. The Family Council In this case, the ideas for advisers came through Through its history, the family had already gone through Wayne’s involvement with the Canadian Association of three successions, and they quickly saw the potential e i l

Family Enterprise (CAFE), a national, non-profit organi- value of a Family Council, which includes not only fam- y e W

zation that promotes the well-being, understanding, and ily members directly involved in the business on a day- l nie

success of families in business. to-day basis, but also those who aren’t involved but are a D : “CAFE has three principals,” says Wayne Gale, cur- in some way still reliant on it. y h rently president of Stokes Seeds at Thorold, Ont. “One “The Family Council is meant to be an opportunity is that you establish a board of directors or advisers, two for the owners and people involved in the company to o

is to be involved in a peer advisory group, and three is to disseminate information to family members who are Ph TOGRAP

8 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA not directly involved in the company, so they have a better idea of what the future holds for them,” says Gale. “It keeps all the misinformation and lack of information out of the family tree so that everybody’s on the same page, and there isn’t a two-tier system where if you’re in the company, you know what’s going on and if you’re out of the company, you have no idea, even when your future inheritance relies on the success of the company.” The origins of Stokes Seeds dates back to 1881, but the Gale family became involved when Wayne’s grandfather was working for the second generation of the Stokes family that founded the business selling seed to commercial horticultural growers in Canada and the United States. When the Stokes ran into financial difficulties, they decided to cease operations in the U.S., and that’s when the Gales’ grandfather bought out the Canadian side of the business, including the inventory and rights to the name. Gale’s father, John joined in the late 1950s and by the mid-’60s they had both U.S. and Canadian corporations. Even so, although he didn’t completely throw the idea of working in the family business out of the window (he believes in keeping as many doors open as possible), when Gale graduated from high school in the ’70s, he decided to go to the Univer- sity of Waterloo to pursue his passion for computers, and after obtaining a degree in mathematics he ended up working as a computer programmer in Ottawa on contract to several government agencies, including Revenue Canada. While he was away at university, Gale’s grandfather died and his uncle joined the business, but the relationship between the two brothers was tense, which helped make Gale’s decision to pursue his own career a little easier. “There was a lot of tension in the company at that time and they really didn’t want a third Gale involved in the business,” he says. “So I stayed clear of that.” What do you do when you have two A Few Qualms smart, opionated, A-type personalities Eventually Gale’s dad bought the uncle out trying to run a business together? and told his son that he could use some help. “So I decided I would go and work for my dad,” says Gale, even though he had reservations because he’d seen first hand how the

Continued on page 12

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pressure of a seasonal business that requires managing a lot of employees, inter-family relationships, and different personalities could make a family-owned business environment stressful and, to put it mildly, not a lot of fun. Gale also had no illusions about the fact that he and his dad were very different people. “When I started, Dad wore a T-shirt and jeans and I wore a three-piece suit,” recalls Gale. “I didn’t have a title or an office. I had to find my own position in the company.” Gale was so unsure about whether he would stay, he rented rather than purchased a home. But one thing he was definite about was the fact that he wasn’t going to allow his relationship with his dad to suffer because of the business. “I told my dad when I started, I don’t want to have the same relationship that you and your dad had,” he says. “I don’t want to be screaming at you, and you screaming at me, because I will be gone. That’s not a threat, it’s just that I’m your son, and I want you as a father, I don’t need you as a boss.”

Building Management Structure There was essentially no management structure in the business as it stood, so that became Gale’s first focus. “It was just my dad and a couple of ladies who were like first lieutenants, and a sales manager and that was the organizational structure,” he says. “The goal initially was for me to work in all the departments for a couple of weeks to get to know the employees and how the place worked.” Gale only made it through three departments when he had to take over as financial controller following the unexpected death of the company’s accountant. “I got thrown into the job, but the accounting department at that point was pretty basic. We just kept books by hand, we had no computers, and had an accounting firm producing the state- ments,” he says. After three months as controller, Gale decided it was time to put a more formal structure in place, so he suggested to his We’re a family business, not a business dad that they hire a controller, which would allow him to concentrate on designing a family,” Gale says. “We believe in computer system to process orders. empowering individuals… not just in the It was a wise choice as it turned out because the controller they hired became workplace but in the family too.” so much more important to their business

12 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA than they ever imagined she would. “We found a lady who was not only our controller; she became the ‘mom’ of the organiza- THIS IS tion,” says Gale. “Any time my father and I had difficulties, we would go to ‘Mom’ and she would delicately try and keep the two of us on track, and acted as a bit of a buffer between us, and I think that really helped our relationship and helped smooth the succession that was taking place as I joined the business.” Gale became president and expanded THE his responsibilities, taking over the order processing and customer relations, and then beginning to move into advertising and marketing. “Dad was mostly interested in the seed side because he had a natural ability to understand what we needed in our catalogue, so he took care of that,” ONE he says. “We established our own territories naturally and we got lucky in that we didn’t end up with two people who are identical. We ended up with two people who are quite opposite, so that added to the strength of the company.”

Change not Always Easy Stokes Seeds brings in flower and vege- table seeds from all over the world, and repackages them at its main office in Thor- old, Ont. Close by at St. Catherine’s is the company’s research facility, which includes trials to test adaptability. It also has distri- bution facilities in the U.S. at Buffalo, New York and Vineland, New Jersey, that serve the U.S. northeast. It also employs 15 sales representatives across Canada and the U.S., and during its CDC TITANIUM is an excellent choice — anywhere across the Prairies busy season its 50 full-time employees swell — for yield and agronomics that include a complete disease package. to around 125 with the addition of seasonal workers. It’s the leading CWRS choice on acres with the potential for midge and As the business has grown it hasn’t rusts. CDC TITANIUM. Proven performance, and more, on farms across always been easy for John to accept or understand some of the changes that the Western Canada. This is the one, available only at your CPS retail. business went through. Technology was an area that was a particular hurdle for him. WELCOME TO THE EXCITING NEW WORLD OF PROVEN® SEED “When we went to our paperless, stock pick system Dad would be in my office say- ing we’ve only got three units of a product on the shelf and we’re going to be out of those by the end of the day,” says Gale. “He didn’t understand that we actually had 200 provenseed.ca units but they were in a different bin location somewhere else. It took him a while

Proven® Seed is a registered trademark of Crop Production Services (Canada) Inc. Continued on page 14 CPS CROP PRODUCTION SERVICES and Design is a registered trademark of Crop Production Services, Inc. 11/16-52758-1

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 13

52758_1 CPS_Proven_Wheat_Titanium_4-58x10.indd 1 2016-12-02 9:19 AM change makers

to get used to that, and it’s an example of how technology changed the business in a manner that he had a difficult time coping with.” Although he may have struggled with a few things, Gale says he credits 7 steps his dad’s openness and values for the way the business has evolved and thrived. “He’s always taught me that we are caretakers. We take care of this busi- to better ness for the sake of our employees and our customers, that’s our role,” he says. “Our role isn’t to use this for personal gain, or as a personal podium or for personal gratification, we’re here to work, and we’re here to make sure business that our employees have a place to work and our customers have a way to get the product. That’s always been his prime directive.”

Next Succession Underway Learning how to adapt The family succession from grandfather to dad wasn’t always smooth, and boardroom strategies to the last transition with Gale’s father, who is still involved in the business at the farm could earn you 82, has caused a few bruises, but overall has been successful. Gale is now in the process of planning for another succession that will the best of both worlds likely involve passing the reins of the business to a non-family member. His daughter has a career in the military, and his son Peter, is already By Angela Lovell working in the company on the computer side of things, but doesn’t want to assume the role of his father. e all think of pinstriped “He’s told me he’s happy where he is so that has put me on a different suits and ivory towers when plan,” says Gale. “We’ve set up a family trust and all sorts of things that go we hear the word “board- with that type of plan where there’s not a family member who’s going to be room.” But with more actively involved in the management of the company, but maybe involved in Wfamily-owned farms getting more complex, the ownership of the company. It will be a different type of succession than maybe there’s something here we can bor- what my father had.” row from the corporate world’s playbook to Not that Gale, who is 61, plans to retire any time soon, but he is do better business on the farm. beginning to think about his replacement down the road. “I still want “There are a lot of board governance to be involved in the company but at some point somebody will have to practices, and even just corporate practices take my position as the day-to-day president,” he says. “I have a head- that can be applied to a family farm without hunter I’ve worked with before who is looking for the right person.” it being so formal and intimidating,” says At the end of the day, whether it’s a Gale at the helm or not, main- Jennifer Wright, senior human resources taining the family’s values and culture is important to all of them. “We adviser with the Canadian Agricultural are a family business, not a business family,” he says. “We’re generous and Human Resource Council (CAHRC). we believe in empowering individuals to be able to make decisions and As farm operations continue to grow, making sure people who have responsibility have the authority to carry Wright says, more operations have multi- it out. Those are things we hold dear, not just in the workplace but in the ple family and also non-family members, family too.” which add more levels of complexity but Gale believes the best manager is the one who can go golfing every Fri- also increases the resources that manage- day. “If you think about it, it’s because he’s not that critical in the operation,” ment can draw on. he says. Not that he intends to golf every Friday, but when he’s on vacation “It’s important,” Wright says, “to run the he doesn’t expect his cellphone to ring. “I feel that I’ve got the team in place farm as a business with a more formal, pro- and the responsibilities identified such that they really should be able to deal fessional structure.” with any problem that heads their way.” A good example is his current project to make himself less essential to the company’s technology. “I’m a computer person so there’s quite a few parts of our computer system that are heavily reliant on myself and one T he idea that farms other individual in their maintenance and upkeep, so we’re investing a need formal business considerable amount of money replacing parts of that system with systems structures can be that are maintained by large corporations so that I no longer become part of the critical path to success,” he says. daunting, but the And they don’t call Gale the “Plan B” man for nothing. “I always have a evidence is growing that Plan B,” he says. “It may not be a great plan and I sometimes am not good at articulating that plan to others, but I always have a Plan B in my pocket. I it promotes better, more don’t want to end up in a position where the company is ever stranded.” CG efficient decision making

14 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA Delegate, delegate, Set an Agenda and focused, and that all the other things delegate An agenda, if it’s used properly, that you might want to talk about, that aren’t Governing and corporate boards also can help keep the meeting focused, really related to the agenda can be talked 1 often set up subcommittees, which 2 and save everyone a lot of time and about at another time. By having an agenda give the opportunity for the group as a whole frustration. “With an agenda everyone knows people’s expectations for what’s going to be to save time and energy by delegating one or what’s going to be discussed and in what discussed in a set time is clear and the person two people to handle a specific issue or area order it’s going to be discussed,” says Wright. leading the meeting can always draw back or responsibility and report back to the rest “It serves to formalize things and to make to it. It sets clear expectations before anyone of the group. A good example would be pur- sure that what’s being discussed is concise even comes into the meeting.” chasing a new piece of equipment. “If, for example, you establish an equipment management committee or whatever you want to call it, you can pass off the responsibility to those two or three people who are taking care of that, and have the STILL USING expertise to look into options and report back to the board or management group that need to make the purchasing decision,” says Wright. GLYPHOSATE “If others have ideas, they can share them with those committee members ALONE FOR YOUR instead of having six or eight family members out there trying to do due diligence on BURNDOWN? all the same issue.” BlackHawk®, CONQUER®, GoldWing® and Valtera™, when tank mixed with Have Someone glyphosate, provide greater weed control today and stronger stewardship in Control for tomorrow. It’s time for progress in your pre-seed burndown. Before you A lot of board practices can plant your next canola, cereal, pulse or soybean crop, choose an advanced burndown for a better future. 2 translate well to farm meetings. Appointing a chair, taking minutes (or at least recording decisions made at meetings), scheduling regular meetings, having an agenda, and setting a start and end time for meetings can help keep everyone on track. That said, not too many family farms have adopted many of these practices, although Ask your local retailer for more information. they are well established in businesses of all sizes in other industries. “I know a lot 1.800.868.5444 | Nufarm.ca realfarmrewards.ca of smaller businesses and even larger businesses that have teams that run meetings,” says Wright. “Sometimes the chair is a rotat- ing chair, so everyone plays that role at some point. That’s one way to ensure that everyone’s involved, especially if you’re working with a family, so no one is always dominant in that situation. But no matter who plays that role, you have to ensure that they garner a level of respect from everyone at the meeting, and that everyone understands they do play a leadership role in that circumstance.” Always read and follow label directions. At one time or another, almost everyone BlackHawk®, CONQUER® and GoldWing® are registered trademarks of Nufarm Agriculture Inc. has suffered through a meeting that they Valtera™ is a trademark of Valent U.S.A. Corporation. Real Farm Rewards™ is a trademark of Monsanto Technology LLC, were sure would never end because it had Monsanto Canada, Inc. licensee. 52279-1016 been hijacked by a couple of talkers who like PHOTO: Glenbow Archives NC-6-3334 to take the discussion off on tangents that have no relevance to the issue at hand. Obviously the chair plays a vital role in keeping a meeting on track, and has to be comfortable exercising authority over the participants, but arming that person with agendas and timelines makes the task a lot easier.

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 15 52279_NFC_2016_Burndown_4-58x7-5_a1.indd 1 2016-12-21 21:17 change makers

F igure out what kind of meeting you need that senior management group meets, what’s most important is Within any family business structure, there are likely that it needs to agree, as a group, who’s taking the lead and what the going to be meetings of different kinds. Senior manage- structure is,” says Wright. “It’s a governance cycle which can apply to 4 ment meetings might be held weekly and involve only the a senior management group as well as a board. There’s governance people responsible for day-to-day operations, although in the case training out there by a number of different organizations but the key of family farms these can also be owners or shareholders. Manage- things are to have an agenda, take minutes, and understand every- ment meetings, whether held in an office or around the kitchen one’s role at the meeting.” table, are designed to make sure the operation runs smoothly on Board meetings can also involve senior managers, but will almost a daily basis by keeping everyone in touch with what’s happening, always include the shareholders or owners of the business, and there what’s coming up, and what needs to be done. can often be outside people such as financial or legal advisers sitting “If we’re talking about just the operation of the farm and how in as well.

Define Responsibilities Consider an Get Impartial Advice On most farms — especially Advisory Board Wayne Gale, president of family-owned operations — Some distinctions between an Stokes Seeds in Thorold, Ont., 5 roles and responsibilities often 6advisory board and a board 7 got the idea of creating an advi- seem to just evolve over the years, but of directors are important to note. A sory board through his involvement it’s easy to take for granted that every- board of directors has fiduciary respon- with the Canadian Association of Family one understands these roles and responsibilities, and it is responsible to all of Enterprise (CAFE), a national, non-profit sibilities. That may not always be the case, the shareholders, whereas an advisory organization that supports and promotes especially for new employees or family board is responsible only to the person families in business. Gale was just entering members coming into the business, or who appoints it — usually the owner or the third-generation, family horticultural even as the farm grows and technology, CEO of the business. A board of direc- seed business that his father, John had run crops, or farming practices change. Defin- tors expects staff or senior management since the ’60s, and felt they needed some ing how the business is organized, and to carry out its decisions. An advisory third-party advice on different aspects of who does what in a more formal way cre- board is there only to offer advice and the business. ates more clarity for everyone, and helps it’s up to the owner or CEO of the busi- They brought in, and paid, three peo- it function more efficiently. “If responsi- ness to decide whether or not to imple- ple with diverse business backgrounds — bilities are defined within meetings and ment any recommendations the advisory in agricultural business, manufacturing within the organization, then it’s clear. If board makes. and insurance — to sit on the company’s one brother or sister is supposed to be in Advisory boards don’t have to be per- advisory board and provide advice about charge of equipment and another brother manent. They can be set up for a specific everything from marketing to succession or sister is in charge of HR, it gives you period of time or to deal with a specific planning. “When they started with us they a point to draw back to,” says Wright. “If subject. As an example, if the farm busi- knew nothing about our business so they someone has an opinion about a certain ness is diversifying into direct marketing were impartial,” says Gale. “They stayed area they know who is responsible and of its value-added products, it may want with us for about 10 years. They were a who to approach. Just like any business, to consult with people who have experi- sounding board for our ideas, and gave us if the manager of product development ence with retail sales or marketing to confidence to make changes in the busi- needs to hire people, he or she will con- help it make a marketing plan. Once that ness that weren’t always pleasant, or what nect with the manager of HR, and so that advisory board has provided the infor- we wanted to do. The advisory board gave structure can also be set in place within a mation and recommendations that the us the reassurance that we were doing the farm organization. business needs, it can dissolve. right thing and sometimes coached us “I believe it’s important to put some “A board of advisers is an interesting to listen to each other’s point of view. It formal structures in place similar to any proposition because you can bring in really helped us a lot in figuring out our other business. There are things that you people who are helpful in areas where roles in the company.” CG can put in place that aren’t as formal as a you need advice and help,” says Larry board, like an advisory group that brings Martin, principal of Agri-Food Man- in some third party, or outside expertise agement Excellence. “You may want a and provides the business with advice,” finance or marketing person, someone The farm is like any says Wright. “Maybe that’s something with a technical background or someone other business. Everyone that some family farms want to consider, who could help with transition plan- needs to be clear what depending on the size of the farm, just so ning. It’s a really good concept, but not that they’re not always talking amongst many farm businesses right now are the structure is, and themselves.” using it.” where they fit inside it

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Living together, farming together

Common-law is the choice for more and more young farming couples By Maggie Van Camp / CG Senior Editor

s Eric Walker tells me about his farm, couples accounting for 16.7 per cent of all census fami- there’s lots of talk about complex business lies, compared to lone-parent families at 16.3 per cent. structures and about his ambitious plans. If that growth rate still holds, about a fifth of all And there’s lots of talk, too, about family, Canadian families today are based on unmarried part- Ahope and love. ners living together. And it’s not just in Canada. More “It’s been a constant whirlwind of expansion, a blur than two-thirds of married couples in the U.S. say that of building, and three babies… that’s on top of the three they lived together before getting married. we already had,” says the 35-year-old farmer from Sus- Often, living together is seen as a way of trying out sex, N.B. marriage, giving the couple a chance to test their com- Eric and his father, Daryl, are in the middle of build- patibility while still keeping the option open to end the ing a new robotic dairy barn, with three robots to milk relationship without legal implications. 165 cows, just over twice the size of the herd when Eric However, sociological research also points to other moved back to farm with Krystal six years ago. contributing causes, such as secularization, increased Since then, the farm has become one of the first in participation of women in the labour force, changes in Canada to use sand bedding with a gravity sorting sys- the meaning of marriage, risk reduction, individualism, tem, and they’ve improved production per cow. and changing views on sexuality. Eric is also the province’s representative on the Cana- Sometimes timing and geography become big factors dian Federation of Agriculture, and Krystal worked off- too. It’s just not as simple as in days gone by, when it was farm as an accountant until after the last baby, when she common to fall in love with someone who lived in the decided to stay home to look after the children and do same community. Back then, there were fewer options bookkeeping from a home office. and less distance to consider. For example, Eric’s parents It’s the kind of story that renews your faith in the and grandparents all grew up on the same road. future of the family farm. Conversely, Krystal was raised in the Okanagan Val- Except, this isn’t a traditional family structure, ley, B.C., and the couple met in Alberta. because Eric and Krystal are cohabitating. They’re living Like many others from the Maritimes, Eric had common-law. packed up and headed to Alberta’s oil country. (After Today, more and more Canadian couples are choos- graduating from McGill University, he did try working ing to live together, i.e. not to marry. And that includes a for his dad for a couple of years, but his dad wasn’t ready growing number of farming couples. yet to talk about succession, so Eric put his resumé out “We are seeing far more cohabitations,” says Robin- and got hired to work in loans in Grand Prairie.) Lee Norris, a lawyer who specializes in agriculture and is The second day there, he met Krystal who was doing a partner at Miller Thomson in Guelph, Ont. an evening shift as a waitress after working her day job That’s not all that surprising, considering how Statis- as an accountant, and they soon became close friends,

tics Canada’s numbers reflect a sweeping demographic although they didn’t start going out for a couple of years. i c e c

change toward living together. Between 2006 and 2011, In fact, Krystal didn’t even know Eric had grown up y b

the number of common-law couples in Canada rose 13.9 on a farm until after they’d been dating a while and they s e g

per cent, compared to a 3.1 per cent increase for married were visiting one of her friends, who operates a purebred a im : couples. Holstein herd in B.C. “I was in awe of the cows,” Eric y h p a

In 2011, for the first time, the number of common- says. “It wasn’t until then that she knew how engaged I r law-couple families (1,567,910) surpassed the number was in farming, and how much I wanted to farm.” g

of lone-parent families (1,527,840), with common-law When Eric got a promotion in his banking career and Photo

18 A FEBRU RY 1, 2017 / COUNTRY-GUIDE.CA those big family gatherings. In fact, one of those gatherings would change their lives. On that weekend, Daryl sat down with Eric and his two siblings and asked which if any would be interested in taking over the farm. A few days before affirming his interest with his family, Eric had a big conversation with Krystal. “It meant that she (and her children) would have to move across Canada for me,” says Eric. “Up to that point, I had mostly kept my desire to farm inside.” She supported his dream. “My parents liked her from day one,” says Eric. “Although they are very conservative, they’ve accepted it (not being married but living together).” The community has welcomed her with open arms. Eric says that folks don’t even question their marital status, but it helps that he calls Krystal his wife, she has a ring on her finger, and they’ve had babies together. Reality is that living together in some parts of the world and cultural pockets is more prevalent and accepted than others. In some Scandinavian countries, more babies are born to unmarried mothers than to married ones, mostly due to cohabitation. In Quebec, cohabitating has emerged as a sub- stitute for marriage, with about half of births to non-married mothers. For some couples the decision to live together is about setting financial priorities. Today weddings can be very expensive, and many prefer to use their resources and time to buy a house or to save to have the wedding of their dreams. Eric and Krystal wanted to focus their energy and assets on building the farm.

Matrimonial Home When Krystal and her children first moved into Eric’s house in Alberta, it was a home he alone For Krystal and Eric, love and commitment had equity in. They created a lease agreement so legally she was renting from him. mean more than a marriage certificate, but Then, when they moved to New Bruns- they also worked out the legal details wick, Eric bought a separate one-acre parcel with a small house for them to share (for only $50,000). had to move, he asked Krystal to move with But with a schedule that meant they At first Eric had a verbal agreement with him. But although they were in love, neither barely had time to eat together as a family, his parents to buy shares in the farm at a set was ready to rush into marriage. Krystal had it didn’t seem the right way to live for Eric. price and it didn’t involve Krystal. Then after her children to think about. Plus, she had “For me, a banking career was a great learn- a few years of adjustments and expansion, grown up in a split family, so for her a mar- ing opportunity but it was not a fulfilling and after the farm helped his other siblings riage license didn’t seem as important as love way to raise a family,” he says. start their own farms, they worked out a for- and commitment — a shift in thinking that Eric had been raised in a traditional mal written agreement for quite a bit more is becoming more common among younger farm family with all the extras, including than the original handshake deal. Canadians. 4-H, community involvement, siblings and “It was worthwhile to keep all our family They settled into their new life together, a big extended family who all love wed- relationships intact,” says Eric. raising children and working, with Eric often dings. travelling for work. Krystal first met his family at one of Continued on page 20

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 19 BUSINESS

allow for that type of lifestyle, and his parents aren’t ready to move out of the home farmhouse yet. So once they get the new barn done, they’ve decided to build a new house across the lane. However, all the prop- erties are on separately deeded land. Usually, explains Miller Thomson’s Nor- ris, as long as the property is still in the farmer’s name only, it will remain as that person’s after the common-law relationship breaks up, subject to a claim for its increase in value. The value of the property a spouse brings into the marriage on the date they get married is not part of the net family property, but the increase in value during their marriage may be. (To give some protection, consider not transferring gifts to a child until after marriage. In most provinces, gifts or inheritance after the wedding date are not joint property.) However, the matrimonial home is split evenly. Farm families need to be aware of this, legal advisers say. One mistake that’s often made with farm couples living together is that they build a new house on some key farmland, close to a barn. The house is the matrimonial home so the common-law partner legally owns half of the farm that the house is sitting on. Some pieces of land are more important to the operation than others, so keep them in the farmer’s name only, especially if it was a gift. Instead, encourage the new couple to buy a house or small acreage as their matrimonial home, in contrast to a house on a larger acreage or on land with barns that are essential to the operation. Sometimes you may be encouraged to put joint names on property to avoid pro- bate fees, but remember, if it’s in joint names, the spouse or common-law partner More farm families across Canada live legally owns half. outside the traditional ideas that their To protect against this, the common-law spouse who doesn’t own the property needs parents and grandparents accepted to be compensated fairly for what they were without question doing on the farm so they don’t have a claim. Pay the cohabitating partner a reasonable In this agreement, Eric bought common company, i.e. a management company, with salary all along for what they were doing on shares from his mom that increase with 50/50 ownership. That company is paid for the farm. Track it, claim it on your taxes and the growth of the business, and his dad got the work they do for the farm, including keep the paperwork clear as to who was paid preferred shares giving him voting control Krystal’s bookkeeping and Eric’s manage- for what jobs when. but not the value of the growth for 10 years. ment. He says this structure keeps the farm Things get cloudier if there are children. They also have a cross life insurance policy, at arm’s length and it adds a level of profes- The rights of children born to common-law in case one of them dies. The spouses will sionalism and perspective. “We can focus on and married couples are the same when get the shares via the life insurance policy the farm’s cash flow,” says Eric. there is voluntary separation. Also, the non- going to the farm corporation to be used to Eric and Krystal want to raise their chil- owning parent spouse has the right to stay buy them from their spouses. dren on the farm. Their current house isn’t in the matrimonial home, even if he or she Eric and Krystal also formed another where the barn is, however, so it doesn’t does not prove a resulting or constructive

20 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA trust. This may be granted if there are chil- before being entitled to any possible spousal ing couples. Recently, the Supreme Court dren involved, whether the spouses are mar- support. Similarly, in Manitoba, the couple of Canada decided where there’s a joint ried or common-law, says Norris. could register their common-law relation- family venture, such as a farm, the value ship at the Vital Statistics Registry but they created during the relationship may be Confusing legalities must be living together in a conjugal rela- split. In 2010 an Alberta court awarded Whatever the reasons or acceptance, cohabi- tionship for three years or more, or one year 35 per cent of the increase in value of a tating is happening more for this gen- with a child. dairy farm during the period of cohabita- eration. Farm families need to put their The rules for settlement after living pre-conceived notions aside and try to together also seem to be evolving for farm- Continued on page 22 understand the implications, as well as to plan and structure their farms to accommodate this change. “There is an incorrect assumption among many farm families that if they are living common-law, the farm is safe from claim if the spouses cease to cohabit,” says Norris. However, following the trend of more common-law marriages, there are more legal situations because of this, and there are more lawsuits claiming constructive and resulting trusts for farm assets when common-law spouses separate. The confusing part is that the courts are still sorting out the rights and responsibilities involved with cohabitation. In Canada, every province has its own rules about family law, and those laws are often complicated. Even the definitions are changing. For example, a 2013 ruling in B.C. changed the definition of spouse in B.C. so common-law partners enjoy the same rights as married couples after two years of cohabitation. So now, couples who have been living together for two years are entitled to a 50/50 split of shared debts and assets — excluding any pre-relationship property or inheritances. In Alberta, meanwhile, common- law relationships are referred to as “adult interdependent partners” and come into Effective nitrogen? That’s a given. effect when the couple has lived together Responsive nitrogen? That’s amazing. for three years or more, or has a child and live together. The law is quite a bit broader Crops really go for ESN® SMART NITROGEN®, and so does your bottom line. That’s than most other provinces. If you live in a because its unique technology responds to the same factors that spur plant growth. How relationship with another person outside does it do it? ESN is a urea granule encapsulated in a polymer coating that protects the of marriage, and if you share one another’s nitrogen from loss through leaching, volatilization and denitrification. ESN technology lives, are emotionally committed to one controls its release to match plant demand based on soil temperature. Your crops get the another and function as an economic and nitrogen they need, when they need it. That’s what we mean by responsive. domestic unit for a period of not less than Minimize N loss. Maximize Yield. three years, there could be legal obligations between the parties. In Newfoundland, after two years of living together in a conjugal relationship, a couple can be considered common-law. In other provinces, for unmarried couples to have rights they can register as being Optimize your nitrogen investment with ESN. Find out more at SmartNitrogen.com. in a domestic partnership. For example, ©2017 Agrium Inc. ESN; ESN SMART NITROGEN logos and designs are all trademarks owned by Agrium Inc. 12/16-47229 CGW under the Nova Scotia Vital Statistics Act, a couple must live together for two years

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 21 BUSINESS tion to a common-law spouse for farm- “However, if there is no domestic contract, ried spouses without a domestic contract ing and domestic services provided during then when a cohabiting couple separates vol- have a claim against the other person’s estate this period. The judgment contains a good untarily, the initial position is that assets are for an equalization payment if they are left summary of the law with respect to “unjust divided based on ownership,” says Norris. out of a will, says Norris. Conversely, com- enrichment,” as applied to common-law If the farm is entirely in the name of one mon-law spouses do not, and again would spouses involved in farming operations. spouse, the other has no right to automatically have to start a lawsuit and prove a resulting Furthermore, the judgment was awarded claim half of that interest, even though the trust exists to get a share of the assets. against both the common-law husband spouse would if they were legally married. If there is no will, the law provides for (who owned the farm land) and the farm- So on the face of it, says Norris, com- married spouses. The first $200,000 of the ing corporation (in which the farmer’s mon-law is safer from an asset protection estate goes to the surviving spouse and the sons had an interest) that held livestock perspective. The difficulty is that if the non- balance is divided between the children and and a dairy quota. owning spouse can prove to the court that spouse based on a formula that looks at the In Ontario the law doesn’t even recog- she or he contributed to the growth of the number of children. nize assets as matrimonial property in these asset, such as working on the farm, helping However, there’s no such provision for relationships. Instead the province uses the build fences or barns, or contributing cash common-law spouses, says Norris. It all law of constructed trust to protect people’s to home expenses, she or he can claim some- goes to the children, if there is no will. The property rights. In this province the right thing called a “resulting trust,” also called a common-law spouse would have to make to claim support on separation is the same constructive trust, and be given some of that a dependency relief claim for support if a couple is married or living common- asset by the court. with a resulting trust claim for asset divi- law, but the right to make claims against sion against his or her own children and the assets is different. A domestic contract can Estate law estate. be entered into under the Family Law Act It’s also a little messier when it comes to “Again, a domestic contract and a will are by either common-law spouses or married common-law spouses, children and estate the best solutions to the inequities that exist spouses and that can determine both asset laws. Estate law treats common-law and in the legal treatment of common-law and division and support obligations. married spouses differently in Ontario. Mar- married spouses,” says Norris.

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22 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA Co-hab agreements “It is every bit as important to have a domestic contract when parties are living common- law as when they are married,” says Norris. Cohabitation agreements are written, legal structures to help ensure the family farm legacy will be intact and a partner will be taken care of if the couple splits or one person dies. To ensure they’re enforceable if challenged in court, such agreements should be carefully drafted and the other partner or spouse needs to be given an opportunity to obtain independent legal advice. When done properly, the great thing about doing a formal cohabitation agreement is that couples and families fully discuss the couple’s present finances and future goals. “The discussion around a prenuptial or cohabitation agreements is what is valuable,” says Gayle Langford, lawyer and registered family mediator at Red Deer. “Anything that helps families discuss all the what-ifs and to come to an agreement before the what-if It isn’t as much a case of whether the couple is married or common-law. When big assets are occurs makes things more predictable and involved, it’s whether the legal ramifications of any kind of split have been considered. easier when those what-ifs happen.” CG

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COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 23 Change Makers

From potatoes to grain to a commercial bull Game business, Lewis Farms has diversified to manage risk and accommodate changer market challenges By Laura Laing

ometimes, progress simply isn’t possible without change,” says Ken Lewis, general manager of Lewis Farms in Spruce Grove, just west of Edmonton, Alta. Which means that ignoring opportunities to change, or “Sactively resisting change when it arrives can actually be the paths of greatest risk. Because change will happen. In fact, like other farmers, Lewis has seen continuous change during his over 40 years in the business, including volatile markets, BSE, new consumers, new industry players and, of course, the weather, and he has tried to be smart about meeting those changes and opening the farm up to them. But of course, that doesn’t mean luck has nothing to do with it. Lewis in fact thinks it has been part of his story, either because his timing seemed somehow to be just right, or because he happened to be the right person with the right experience at the right place and time. But, too, he’s the first to agree that luck isn’t what you want to

hang your business on, because luck can and will run out. e l

In Lewis’s opinion, the keys for succeeding through adverse con- ou H

ditions include attention to risk management and diversification, ny o h

plus determination and a keen passion for what you do. t n A For 85 years, Lewis Farms has embraced change, managed chal- : y lenges and somehow turned them into opportunities. Today the h farm has a purebred Simmental and Angus cow herd of 900 and two co-operator herds with Lenard Mark and Kyle Martin, consisting of o Ph TOGRAP

24 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA mother cows contributing to their bull pro- recognized and respected cattle business, gram. They also grow about 400 acres of seed for Lewis, diversification is a layered effect Being potatoes and 5,000 acres of wheat, canola, strategy, with each enterprise building and diversified, our barley, and silage (corn and barley). Their enhancing the others. risk management is 3,000 to 4,000 acres of hay and pasture are This risk management and growth strat- on a combination of deeded and rented land. egy didn’t end with the simple diversifica- spread, but that also In the beginning, the Lewis Farms risk tion from crops to cattle. In the late ’70s and means we aren’t management and diversification strategy early ’80s, Lewis Farms entered the purebred was more influenced by natural evolution cattle sector, where they established more as efficient as we or need, rather than a formal plan. Lewis’s than one market for their purebred bulls, as could be when you grandparents grew just over 400 acres of well as embryo and export markets. seed potatoes, half of which were under con- Finding their niche in the cattle business compare to other tract with Frito Lay. Cattle didn’t become took some experimentation. They started by operations really part of their operation until the 1950s, as using artificial insemination of Simmental, a way to use the cull potatoes and to feed Charolais and Murray Grey on commercial specialized in one the other crops in their rotation. (Potatoes cows in the ’70s, which helped to define commodity like require a wide crop rotation, so other crops their specific interest in Simmental cattle in like barley and wheat are grown.) the early ’80s and now their growing expan- grain and oilseed or “The cattle were an evolution of the crop sion into Black and Red Angus. strictly cattle.” business,” says Lewis. “What drove the diver- The purebred business was a good fit sification of our business further from there since they were already running cattle and was a keen interest specifically in purebred were quite involved in showing cattle. cattle.” From potatoes to grain to their globally Continued on page 26

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COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 25 change makers

The farm is a great equity builder in M anaging change North America, not just Canada,” Lewis with risk says. “On the flipside though, is the challenge Risk management has always been a need in the cattle industry, and it’s of cash flow. It is always pretty limited relative growing rapidly in response to the to that equity.” extreme volatility in the industry over the past few years. New companies, The next shift in diversification was debt-to-equity ratio is usually relatively low like Agra Risk in Strathmore, Alta., from female production to supplying bulls, compared to other businesses, and we tend are emerging in the industry to not only for the purebred industry but also to be pretty conservative in our industry,” meet this growing realization and for commercial herds. That commercial says Lewis. “I think that is a differentiating need for risk management. diversification pushed further expansion, so factor in the business of agriculture versus they could meet cow-calf producers’ grow- other businesses.” The company helps both crop and cattle ing demand for stronger genetic influences In addition to land equity, when it comes producers by educating and taking the for their calf crop and breeding replace- to supporting their continued growth, Lewis fear out of unknowns in the markets. ments. Farms is now reliant on the next generation’s “People forget that there are tools Having several enterprises helped spread knowledge and energy. What keeps Lewis up that protect all commodity participants the risk and any potential impact on their at night is also his biggest source of pride in from disaster and extreme loss. When bottom line, and it allowed them to with- the operation — the enthusiasm, passion it comes to risk management, one of stand market challenges, like BSE and major and involvement of the next generation. the major issues is lack of education fluctuations in prices market volatility. With Since its inception Lewis Farms was built and fear of the unknown,” says Greg different breeds of purebred cattle and dif- on a foundation of family working together. Appleyard, Agra Risk president ferent markets that they cater to, their com- Ken farms with his father, Jack, wife Corrie and founding partner. He’s also mercial bull business has more stability than and their children, Kyle and Kirbie, and his participated in large-scale crop and feeder and fat markets. Progressive cow-calf sister Sandy and her children, Jordan, Jamie, cattle production for over 20 years. producers invest in bulls for the long-term and Tyler. They’re all involved to some “For years I believed following the benefit of their herd. Their diversification degree with Lewis Farms, and that brings industry gave us a road map to what also helped when the semen and embryo many complexities to managing succession the cattle are worth. I was wrong. Our business and embryo export market was hit for Lewis Farms. This generational change success has come from running our hard by border closures from BSE. demands a succession plan and a strategy own returns on a daily basis — fully “But sometimes what is a benefit to the that fits the large, multi-faceted operation understanding that if you don’t buy business can also be a challenge,” says Lewis. and family. them right, you may never have a “Being diversified, our risk management is Succession has been an eight-year proj- chance to get out of them,” he says. spread, but that also means we aren’t as effi- ect for the Lewises and they’re still working cient as we could be when you compare to through it. “You try and build a format that When it comes to surviving and other operations really specialized in one the next generation will have a template for, succeeding through change, a risk commodity like grain and oilseed or strictly and one that will support their growth and management strategy must support cattle.” success and keep the family together,” says prediction and profitability in the The ability to adapt and diversify, and Ken. “Family business can be tough on the business. Not easy in the cattle industry, then to grow and to take advantage of family, its emotions, livelihoods and busi- but one that in Appleyard’s opinion opportunities as they arise relies on financial ness. A succession plan is more complex in is possible. “The day you buy cattle backing and ability. For Lewis Farms, this today’s family farm than it ever used to be.” they are not losers,” says Appleyard. financial foundation has been and continues “There’s 100 per cent gain or loss.” to be land equity. “Fortunately for us, we Reputation With a hedge strategy, it will not get have a large enough land base, allowing our Lewis Farms’ annual bull sale sees over 340 worse unless there is a major event business to grow,” he says. bulls through the ring and caters to an audi- like a border closure, he says. As a Lewis says this is the case for many ence of 1,000 in-ring and online viewers and direct participant in the industry, he farmers and it’s what makes agriculture buyers, many of whom have been attending hedges 100 per cent of the cattle. an opportunistic enterprise compared to and supporting their growth since their first “This has allowed profitability for us other businesses. “The farm is a great equity on-farm bull production sale in 1985 where even in a year like last year,” says builder in North America, not just Canada,” 37 bulls were sold along with five females. Appleyard. “As a cattle investor, it he says. “On the flipside, though, is the chal- When it comes to surviving change, a just becomes common sense to me to lenge of cash flow. It is always pretty limited solid reputation is what has kept his auction hedge every animal under a consistent relative to that equity.” ring full at their bull sale, despite the ups and program that makes returns not Lewis believes that one of the great pil- downs in the marketplace. Often it’s hard to only predictable, but profitable.” lars supporting the survival of the family find a seat, many of which are taken by cus- farm throughout time has been land equity, tomers who attended their first bull sale and combined with the fact that as a whole the are now close friends. farming industry is fairly conservative. “Our It’s something Lewis and his family have

26 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA worked hard for and are very proud of, and what he believes is the backbone for the success of their business. “Reputation helps manage risk. You need to stand behind and in front of your product,” Changes devastate feedlots Recent market volatility and new government programs have he says. been blamed for the shutting down of Canada’s biggest cattle Lewis says sticking with one thing and doing it well helped with feeder, Western Feedlots. The company, which has been in their credibility and reputation. “Don’t flip-flop; adjust and change the cattle business since 1958, claims the strong “headwinds” what you need to, of course, but stay focused. It sounds simple and facing their operation like the high markets in 2014 and 2015 it probably is, but just trying to stick to that zone and building from and recent policies introduced by Alberta’s NDP government, there and being quality-oriented rather than numbers driven. Num- including Bill 6 and the looming carbon tax, forced them bers can be short-term. The vision of your business is long-term.” to close the pens on their operation in September. And when it comes to longevity, Lewis agrees that the Canadian cattle industry has and will continue to endure times of change and Western Feedlots wasn’t the first feedlot to close recently, adversity, but he feels it is set to survive risk and change perhaps just the largest. Five family-run feedlots have closed over better than other businesses. “The one thing that doesn’t change for the past two to three years, according to a group called our industry is that people need to eat and hopefully they continue Stop the Head Tax in Lethbridge (Alberta) County. to choose beef,” he says. “We are a legitimate industry providing “Our industry is under attack on all fronts,” said Rick Paskal, safe, reliable food and the reality is that somebody still has to pro- president of Van Raay Paskal Farms Ltd., an Alberta cattle duce the cattle.” feeding operation and a major backer of the Stop the Head Lewis says losing Western Feedlots is definitely a loss for the Tax group. “We are going to see more cattle feeders go under industry, not only in Alberta but for Canada. But, he says, this is in the next six months in Lethbridge County,” he warned, another example of how we need to adapt to change to make prog- “and see more cattle fed in the United States, which will ress. For cow-calf producers there’s more opportunity to diversify mean job losses, further price reductions for ranchers and and think about backgrounding. “This is what always creates a another blow to Alberta’s already faltering economy.” margin in a market like this when nothing is working. It requires a change, and with that change, brings opportunity,” says Lewis. CG

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COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 27 BUSINESS

The

In a more diverse Canada, halal market many farmers are learning what halal actually means, and some are already finding ways to profit from its booming demand

By Shannon VanRaes / CG Field Editor

avigating the narrow aisles of his Winnipeg shop with the energy of a man half his age, Yusuf Abdulrehman pauses to Npoint out bright spices, dark teas and pastel sweets that have travelled across the globe to reach his prairie outpost. I had called Abdulrehman because I wanted to learn about halal meats, and he had invited me to his store. He points to shelves stacked high beyond his reach, explaining, “We don’t only sell halal meat, we have a variety of products coming from all over the world, coming from Syria, from Lebanon, Jordan, Turkey, Egypt, Morocco, Tunisia. This is why you need to be at the store to see it all, there is so much here.” After directing one customer to a nearby freezer and pausing to quickly say “As-salãmu ‘alaykum” to another, Abdul- rehman leads the way to a side room, pulling out a variety of well worn chairs and stools before settling in. “I will start with this,” says the owner of Halal Meat Centre & Speciality Foods, leaning forward. “When I first came here and other immigrants came here from wherever it was they came from, they all started looking to see where they can get halal meat, but at that time you could not find it anywhere.” o

l The short-term solution for Muslims like ay

c Abdulrehman was to eat kosher products since both kosher and halal foods are pork- free, and they are slaughtered under similar conditions. But for the one-time salesman

Photo:Chris Pro who fled political turmoil on Zanzibar with

28 A FEBRU RY 1, 2017 / COUNTRY-GUIDE.CA only the $20 he had sewn into his belt, the and activist lives in Toronto, but she was long-term solution was clear — he would born in Halifax and still treks out to the open Winnipeg’s first halal store, even if it family cottage on Prince Edward Island each meant harvesting the animals in accordance summer, which means stocking up before with Islamic requirements himself. she hits the road. More than three decades later, Abdul- “Here (in Toronto) we have incredible rehman still slaughters most of the meat butcher stores where I can get everything sold in his store, but he is also able to pur- from filet mignon, to chopped sirloin, to chase halal chickens from a local supplier ribs, to Pakistani tandoori chicken, to wings, and he notes that mainstream food compa- so you name it, here I can get it, and that is nies now produce halal products as well. pretty awesome,” says Ahmed. “But if I drive Maple Leaf Foods launched Mina Halal, out to P.E.I., I will take a cooler full of those a line of hand-slaughtered chicken, in kinds of foods, halal hotdogs, marshmal- 2012. It was soon followed in 2013 by six lows, halal gummy candy, everything you value-added halal chicken products includ- can’t get there.” ing nuggets. Sargent Farms in Ontario and While some stores on the East Coast do Dunn-Rite in Manitoba also provide halal carry halal products, the mother of four says poultry, as do other small processors across the selection is scant and prices are high. In the country. Cargill’s Dunlop facility in some areas, there’s an alternative, of course, Ontario specializes in halal beef and Sun- but it isn’t always convenient either. Gold Meats in Alberta specializes in halal “Basically, you go to a farm in rural Nova lamb and goat. Other Canadian companies Scotia or wherever and you literally order We were looking even sell halal bison and elk. a whole cow and that cow is chopped up According to the 2011 National House- and put in your freezer. That’s how a lot of at how to hold Survey, there are more than one million people do it in those areas, compared to, say, grow our business,” Canadian Muslims, up from about 580,000 in Mississauga,” explains Ahmed. Muslims in 2001, making it the fastest-grow- One place you might look is Oul- SunGold’s Kliner says. ing religion in Canada and for producers, ton Farm, about halfway between Halifax “One thing that was processors and marketers, halal consumers and Wolfville, one of the few provincially represent a growing and largely untapped inspected abattoirs offering halal slaughter very apparent is that demographic. on the East Coast. the ethnicity of the Despite increased availability of halal Until about six years ago, Oulton’s was food in Canada, a 2014 survey found 70 the only inspected halal provider in Nova population of our per cent of halal households felt food com- Scotia. “We probably do about 500 or 600 country is changing.” panies were failing to meet their needs, goats each year, and that is limited by supply, while an additional 61 per cent of respon- basically,” says Wayne Oulton, whose parents dents felt major grocery chains fell short of founded the meat shop and first ventured expectations. into the halal market in the 1970s. “And we “There is definitely a lot of room for do about 2,000 lamb as well.” improvement,” says Salima Jivraj, managing “For local farmers, it’s great,” Oulton director of halal at Nourish Food Market- says, explaining the province lost its federal ing, which commissioned the survey. “Most slaughter capacity, leaving producers reliant of the 900 people we interviewed were from on provincial plants and local customers. urban centres — from Toronto and the GTA “So I think as a local farmer, if we can sell it — so if they feel they are being underserved to a local business, that’s a better home for then I can only imagine that Muslim Cana- our animals that hopefully brings more dol- dians in smaller centres, small communities lars to everybody.” are also underserved, probably more so than Thousands of kilometres west, near the people we spoke with.” around Innisfail, Alta., one processor has The difference between Toronto, Van- turned to halal processing to diversify its couver and Montreal and places like Corner consumer base and drive its business, only on Brook or Moose Jaw is clear to consumers like Shireen Ahmed. Today the sports writer Continued on page 30

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 29 BUSINESS a much larger scale. Since opening its doors strengthen our business and researching the For most halal consumers, the term in 1974, SunGold Specialty Meats has under- food service and retail landscape… con- means that a healthy animal has been gone many re-imaginings, but today the fed- sumers’ requirements, consumers’ taste, slaughtered by a Muslim, killed with a swift erally inspected lamb and goat processing consumers’ interests,” says Kliner. “So in a neck incision as the butcher thanks God for plant is entirely halal, even though no one in nutshell, when you do all that research you the animal. Pork is also forbidden under the company’s ownership group is Muslim. put together that information… one thing Islamic dietary law. “We are actually owned by livestock pro- that was very apparent, is that the ethnicity “The word halal means permissible,” says ducers, by farmers, so our ownership is a of the population of our country is changing Abdulrehman, “which means you make sure group of Alberta livestock producers,” says and growing, and there is an opportunity to the knife is sharp and that when you do the SunGold’s general manager, Miles Kliner, serve that market.” slaughter, you do the job as quick as you can explaining how halal was identified as an The next steps were to research halal cer- so you do not torture that animal. At the underserved market during a long-range tification agencies, form a partnership with same time, what you are doing, is you are business planning exercise. one, and begin the move towards meeting thanking your lord for allowing you take a “We were looking at how to grow our Islamic slaughter requirements, a process life from another living creature for your business, asking how were we going to SunGold completed in 2006. own sustaining.”

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30 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA Dhabihah (or Zabiha) is the term most animals are restrained and stunned prior “With beef there is the issue of captive often used to describe the ritual slaughter to harvest. “I’ve had consumers call up and bolt stunning,” she says. “And that was one that makes meat halal, and Kliner says there they are really irate with me on the phone, of the main questions I got in Alberta, how isn’t a day that goes by when the SunGold almost to the point where I can’t get a word do we work around that? And from my con- website doesn’t receive a question or com- in edgewise… but when they calm down versations with the certifiers, they say it’s just ment from consumers, some of which are and actually hear me describe the process… a matter of us working with them to find a about halal processing, wondering about they come away with the feeling that they solution.” how it all works and if it’s humane. The were really glad they called.” It’s not that captive bolts aren’t allowed, general manager assures customers it is, Back in Toronto, Jivraj agrees there is she adds, it’s that for the meat to be halal, the explaining how ancient techniques and no reason halal isn’t compatible with mod- ritual slaughter must occur after the bolt is modern practices are combined to ensure ern meat processing methods. The editor of applied, but before animal is dead. animal welfare requirements are met or Halal Foodie recently returned from Alberta “It’s a matter of timing,” Jivraj says. exceeded. where she spoke to producers about the However, some questions about halal “Done properly, they don’t feel any pain, business possibilities halal offers the cattle this is a must for us,” says Kliner, explaining industry. Continued on page 32

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COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 31 BUSINESS slaughter have less to do with concerns about animal welfare and more to do with anti-Muslim sentiments and far-right ide- ology. It doesn’t take more than a few sec- onds of online searching to come across racist or ignorant diatribes, posted under the guise of providing information about halal slaughter. Some of the calls Kliner receives have reflected that xenophobic sentiment. “Honestly, in today’s day and age with

all we see and hear in the media, that’s not y good,” says Kliner. “It’s important for us to h be able to tell the story with the facts and tograp ensure that people aren’t just running off in o Ph some direction making assumptions.” h nc a

Kathy Twardek, director of consumer R k ee

protection and market fairness for the Cana- r C

dian Food Inspection Agency, notes that all te i Wh products produced in federally inspected : y facilities must meet the same health and h animal welfare requirements, whether they are halal or not. o The agency also implemented labelling Ph TOGRAP requirements last spring, requiring halal SunGold got into halal processing because so much Canadian demand was under-served, but it product labels to be accompanied by the is already venturing into global markets too, with sales to the Middle East and Hong Kong. name of the organization that certified the product as halal. is occurring, but it is just a matter of what rehman isn’t concerned about declining cus- “(The regulations) were put in place to your certifier tells you.” tomers or competition from the big retailers. respond to the need for a more consistent At Waldner’s Meats in Niverville, Man., the That’s because stores like his are benefiting approach to the labelling of halal products,” value that customers place on hand-slaugh- from yet another cultural shift. says Twardek. “There are different inter- tered birds has been long apparent. The small, “The customers have changed, they have pretations of halal and different certifiers provincially inspected processor slaughters diversified. Now I am not only catering to follow different processes… so by providing about 42,000 each year, supplying stores such the Muslim community, I am catering to the the certification body, consumers are able to as the one owned by Abdulrehman. general public as well. I have more clients decide if the type of halal they are looking at Angela Chipilsky says they bring in a now that are not of the Islamic faith,” he is what they are looking for.” halal harvester every time they process poul- explains. The move has garnered a mixed reac- try. “He comes out when we process our Some come for goods like carbonated tion from consumers, with many feeling birds and he hand cuts and blesses every yogurt drinks and spices, but they also buy there isn’t enough oversight of the certi- one,” she says, adding the hand processing halal meat. Even at chain retailers, more fiers. seems especially important to their older non-Muslims are buying halal products. “It’s a great first step… but because there generation of clients. A report published in Canadian Grocer is no accreditation, anyone can be a certifier,” Other trends are also emerging in the Magazine notes that while 11 per cent of all says Jivraj. “If I have a product, I could actu- halal market. While earlier generations were meat sold in the United Kingdom is halal, ally open up a side certification business and generally only concerned about whether a Muslims only account for three per cent of then certify myself because there is no one product was permissible, Jivraj says Cana- the population. governing that.” dian-born Muslims are often searching for Canadian Grocer Magazine went on to What she’d like to see is a national additional qualities, such as food that is say, “the concept of halal has extended far accreditation agency pulled together by the organic or locally produced. beyond a religious choice, also attracting religious community, but with the addi- “Especially with the millennial genera- consumers who are environmentally con- tional authority of government backing. tion that is coming up now, they are the ones scious (and) health conscious.” Still, there’s another issue that is gaining that are born here and they don’t have the Jivraj, who also founded Canada’s first even more priority. same struggles as their parents did, so they Halal Food Festival four years ago, is opti- “For some reason, the main focus right are not looking for fast and easy, they are mistic. “I think it is only going up because now is chicken: is it slaughtered by hand starting to look at quality,” Jivraj says. They the population is increasing,” she says. “We or is it slaughtered by machine?” Twardek also lack the sentimentality about the brands have one million Muslims right now in Can- says. “The traditional method is slaugh- and products from their homeland, making ada, and that number is expected to triple in tered by hand and it is preferred, but a tiny shops like Abdulrehman’s less alluring 20 years. It is growing 13 per cent annually, lot of people also accept machine slaugh- to second-generation Muslim Canadians. and the the higher the population, the more tered, so that is really where the variance But back in his Winnipeg store, Abdul- the demand, the more the growth.”

32 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA But while Agriculture and Agri-Food organization does promote Canadian halal because of our agricultural ability,” Jivraj Canada puts the value of the Canadian halal harvest in the Middle East, North Africa and says. “We are also maturing as a commu- market at an estimated $1 billion, a 2014 the European Union. nity ourselves and many of us are second- report by Thomson Reuters estimates the For those who do seek halal certification, generation, third-generation Canadian and value of of the global halal market will reach market opportunities in Canada and abroad our demands are that we want to be more US$1.6 trillion by 2018. It offers Canadian seem ripe. But will Canadian processors take and more like our peers. We want products producers and processors a whole new set of advantage of it? that are mainstream… there is only growth opportunities, says Jivraj. “Canada sits at a really great place just ahead.” CG “Canada will be in a really, really good position to be exporting,” Jivraj says. “Can- ada as a whole is seen by other countries, like China or in the Middle East, as this pure country with this vast open land base and grazing cattle. We have this image so our meat is seen as premium, but we are not pushing it much in the halal category.” Ron Davidson of the Canadian Meat Council suggests this could be because different countries have different halal requirements, meaning a halal processor on the Prairies might be able to export to the United Arab Emirates for example, but not to Indonesia or Malaysia, where the market is considerably larger. “Companies are trying to adjust to that and we are certainly interested in the halal market — there is quite a bit of meat going to these countries and there is quite a bit of room for growth,” Davidson says. “So we are trying to satisfy the requirements for different countries and that is a challenge for the plants.” Smaller operations like SunGold have made inroads into the Middle East, as well as into Hong Kong. And in 2014 another With accounting software built for agriculture Alberta-based meat processor, Prairie Halal Foods, opened its first office in Dubai. Save dollars Keep your business on track and on budget “In Dubai, where there is a lot of New with AgExpert Analyst – do everything from basic bookkeeping to GST returns, inventory Zealand lamb consumed, we service the and make management, payroll, forecasts, automated high-end restaurants at hotels and resorts,” or customized reports, and more. says Kliner, noting SunGold exports are pre- sense mium, grain-finished products. fccsoftware.ca | 1-800-667-7893 Halal beef from Canada also makes it into overseas markets, with about half a dozen smaller, federally inspected plants processing it in Alberta and Ontario. But Duane Ellard of Canada Beef says the market isn’t often a priority because halal beef production is associated with an increased production cost. “When you incorporate another process in the harvesting process, it comes down to a financial consideration,” Ellard says. “So there is an extra person that has to be in attendance, there has to be a certification, there needs to be a program in place, records have be kept, from a harvesting perspective, there is quite a bit of regulation.” Still, consumption in Canada has grown three per cent in the last five years, and the

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 33 BUSINESS

A sweet, sweet story

When she was growing up, Lindsay it would be great to see a Canadian- to eat the same things, and diversity in Contractor’s sweet tooth was finely tuned made product on the shelves, but it Halifax in the ’80s, I’m sorry to say, wasn’t to the nuances of fluffy marshmallows just isn’t there,” she says, adding that as celebrated,” Ahmed says. “It’s seems and chewy gummies. But when she scarcity of halal gelatin could be the like something small, it’s just candy, but began practicing Islam in 2011, those major roadblock for those interested I’ve been reflecting on how much joy we sugary treats took a sour turn. in pursuing halal candy production. get from food, how much comfort we get from it, it’s fun to have these treats “I grew up in a world full of lots of Eventually, Contractor did find enough and participate in sort of the silliness of gummies and marshmallows, and I beef gelatin to perfect her marshmallow having these squishy gummy candies.” never thought twice about eating them, recipe and she decided to sell the overage I didn’t even realize that there was out of her home near Toronto in 2013. In But demand for halal candy in Canada is far pork in them,” explains Contractor. a snap decision, she also ordered some from being anecdotal. A survey by Nourish “But as soon as I reverted to Islam, I halal gummy candy manufactured in Food Marketing found that fewer than 28 obviously stopped eating pork-based Turkey and put that up for sale as well. per cent of halal consumers believe candy products and I realized that they didn’t and sweets are halal by default, meaning The response was overwhelming. have any gummy options here.” more than 72 per cent of halal consumers “People just kept coming and coming to are looking for candy labelled halal. Gummy candy and other processed my house,” Contractor says. “I realized confections generally rely on gelatin With more than a million Canadian that gummies were the star of the show, for their unique consistency, a product Muslims, Salima Jivraj, Nourish’s people wanted them. I was just advertising often made using pork byproducts, which managing director of halal says there on Facebook and through word of mouth at means they can’t be halal, the term are hundreds of thousands of potential that time and we were still overwhelmed.” most often used to describe products customers waiting for products like meeting Islamic dietary requirements, It was the largest hole in the halal market halal gummies to become available. which includes eating meat slaughtered Contractor had discovered yet and she “Some of it is novelty, but for people by hand and abstaining from pork. was not going to let it go unfilled. Within who haven’t been able to eat things like months, she and her husband Imtiaz Taking to social media, Contractor soon marshmallows, it is a big deal,” says the secured a warehouse and became the learned halal gummies and halal candy in agency’s Jivraj. “This is one of those first large-scale importers and distributers general isn’t widely available in Canada, categories that has a lot of potential.” of halal gummies in Canada. Blossom & if it’s available at all, and the few halal Bean: Halal Confectionaries was born. Duane Ellard at Canada Beef is less products the mother and entrepreneur did sure of the potential halal beef gelatin find on store shelves were not appealing. For halal consumers like Shireen Ahmed, has, at least in terms of market size, the arrival of halal gummies meant “There were marshmallows available, but says the organization will help the end of a years’ long craving. but they were hard and small, almost connect anyone who is looking for crunchy,” says Contractor, who “I dropped my children off at school, all four the product with the right supplier. quickly decided to make her own. of them, I went to the store when it opened, “Chances are if we don’t already know, I bought two bags and I ate a whole one in But here too she was hampered we can find out where you need to the car by myself,” says the Toronto-based by a lack of halal ingredients. go for whatever you are looking for,” sports writer, who grew up in Halifax when says Ellard, but he adds that getting “I was literally running all over the halal dietary requirements were less known economic returns from niche markets city trying to find halal beef gelatin,” and less accommodated. She had her can be challenging for processors. she says, noting the few large stores first halal gummy candy when attending that carry it sold out immediately. university and still remembers being unable Still, Contractor hopes to see the day What Contractor eventually found to eat cake at a friend’s birthday as a kid when she can source both gelatin and was imported halal beef gelatin in because it was iced with marshmallows. gummy candies from Canadian food smaller Muslim-run, corner stores. processors. “Absolutely,” Contractor “It excluded you automatically, when as a says, “it would be great to see “It was definitely a hot product and child you really want to blend in, you want Canadian products be available.”

34 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA PG. 40 Start 2017’s cropping season by finding the right agronomists to give you the best advice. PG. 42 Feed barley deserves to be grown on more acres. Should you seed some this spring?

Peola continues to show promise

On their own, the peas and canola may only produce 60 per cent of normal, but that still adds up to a 120 per cent yield By Julienne Isaacs

ntercropping sometimes gets a bad rap from producers. For one thing, crop insurance often doesn’t cover intercropped mixtures, so if one or both Icrops fail, they’re out of luck. For another, yield benefits don’t always outweigh the extra legwork required at planting and harvest. But the promise of intercropping is that some crops can be mutually beneficial, boosting overall yields, minimizing pest pressure and maximizing nutrients. There’s no lack of crop combinations to choose from. Western Canadian growers have experimented with flax-lentil, pea- canola, pea-mustard, chickpea-flax and lentil-flax combinations, to name just a few. Recent on-farm trials in the U.S. have looked at winter wheat-soybean intercropping too. Not all intercrop mixtures have data to back them up, but new research in Manitoba points to the benefits of pea-canola intercropping (or peaola). Brent VanKoughnet, a consultant and owner of Agri Skills Inc., is heading up a field-scale, two-year trial of peaola intercropping for Manitoba Pulse and Soybean Growers (MPSG). The study, which began in 2015, looks at peas and canola grown alone and in combination. “Anybody who talks about intercropping, they’d say the hope is that .5 plus .5 equals 1.2 — you get 20 per cent more than you would with each crop alone,” he says. “Roughly, I got 60 per cent of a canola crop and 60 per cent of a pea crop in 2015, but I did it on the same acre. Brent VanKoughnet uses a screen in the yard before putting the crops in separate bins, but some “Crops can find their space and comple- producers put the mixture in one bin and leave screening for a rainy day. ment each other a little bit, rather than one competing the other out of existence,” Van- Koughnet says.

Continued on page 36

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 35 crops Guide

Canola supports pea vines Across both years of his study, VanKough- net found that harvesting the intercropped fields went more smoothly than harvesting the peas alone. “The peas climbing the canola make the peas easier to harvest,” he says. “And the peas knit the canola together so there’s very little risk of wind shatter because they’re knitted with the peas. The combination works pretty well as long as maturity is close to the same.” A peaola study led by Alberta’s Lake- land Agricultural Research Association from 2014 to 2016 also found that the mixture resulted in minimal lodging, which improved their ease of harvest. The most potentially time-consuming task at harvest is separation of peas and canola. VanKoughnet uses a screen in the yard before putting the crops in separate bins, but some producers put the mixture in one bin and leave screening for a rainy day. Todd Vanstone, a grain producer near Miami, Man., has intercropped peas and canola on a quarter section for four years. He uses a Bench Industries grain cleaner to screen the canola from the peas. Greg Bartley, MPSG’s research technician, says Manitoba producers who have experimented with peaola often have seed businesses already and are set up to clean seed. It’s not the extra labour that’s been pro- hibitive for Vanstone. Instead, it’s the fact that Manitoba producers can’t get crop insurance for peaola. The last two years running, Vanstone had hail damage on the fields. This year, he had a windstorm, but despite the damage saw a decent harvest. “I got into peaola after reading the research — there’s supposed to be a 20 per cent yield bump,” Vanstone says. “I’m trying to add some diversity to the soil as well.” A three-year test in western Manitoba has shown encouraging results for a vetch/sunflower intercrop. Nitrogen is tricky

Ph oTO: Scott Chalmers, WADO For maximum canola yields, it might be necessary to put some N down. But the perfect formula for N application isn’t clear. It’s a tangled mess of plant material. I In a zero-nitrogen application treatment wouldn’t consider not having a fungicide.” of peaola, VanKoughnet found the peas generated enough N for themselves and — Brent VanKoughnet, Agri Skills Inc. brought along a reasonable canola crop to boot. When small amounts of N are added, the canola “thrives,” he says, while the peas become slightly less productive. In Land Equivalent Ratio (LER) com- parisons for VanKoughnet’s study, the high-

36 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA intercropping

The pea vines can support the canola and make it easier to harvest.

Ph oTO: Scott Chalmers, WADO est LER occurred in the zero-N treatment, down. Anything you do wrong with the peas More combinations with a total yield of 47.6 bu./ac., compared will hurt the system,” he says. “If you starve These days, Chalmers is excited about a to canola alone at 44.5 bu./ac. and peas the system of N, the peas by nature will pro- recently completed three-year study look- alone at 38.5 bu./ac. duce more than they need.” ing at a hairy vetch-sunflower mixture that According to Scott Chalmers, a diver- yielded promising results. sification specialist with the Westman Flea beetle benefit? In the study, hairy vetch did not affect Agricultural Diversification Organization VanKoughnet says the risk of disease can sunflower yields and left a credit of over (WADO), the ideal N application rate is def- often be higher in peaola, due to higher 60 pounds of N per acre, but the real ben- initely less than 50 pounds per acre. When crop densities. efit was to soil health. “We saw a 0.25 per N is added, there is a higher proportion of “It’s a tangled mess of plant material. I cent organic matter boost in one year,” he canola to peas. wouldn’t consider not having a fungicide,” says. “We couldn’t see any real economic Chalmers has run peaola studies he says. “For peas alone and canola alone you benefit but in terms of intrinsic benefits in Manitoba since 2009, when he began would (apply fungicide), and with this much there was the improvement of soil health, a three-year study looking at seeding rate more biomass you definitely need to treat it.” and there was a huge reduction of weeds.” combinations and crop characteristics in If maturity of the two crops is roughly on Chalmers says producers considering pea-canola intercropped systems versus sin- par, this is simple. But in 2015, VanKough- intercropping should have a clear goal gle crops. This year, he started a new trial net’s canola got nipped with frost and was in mind before they start. “Don’t do it looking at nitrogen and phosphorus rates held back slightly, so staging was difficult. because it’s in a report,” he says. in peaola. “That’s just the risk — some years the crops If producers know their primary objec- He’s also collecting data on 20 Mani- don’t move along at the same stage,” he says. tive for intercropping — nutrient man- toba and Saskatchewan producers’ peaola When it comes to insect pressure, the agement, soil and water management or fields, tracking inputs, seeding rates, yield picture is brighter. While he doesn’t have habitat management — they’ll keep their and LER. data, Chalmers believes the pea-canola mix- priorities straight if they fail in a secondary “What we’ve been seeing is that every ture deters flea beetles. Vanstone says over objective. time farmers apply N, it defeats what they’re his four years of intercropping, he’s had sig- “And if they’re successful,” says Chal trying to do with intercropping — the nificantly fewer flea beetles in peaola than in mers, “they’ll realize economic benefits canola yield goes up but the pea yield goes canola alone. too.” CG

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 37 crops Guide By Ellen Goodman / Cigi

Adding nutritional punch to instant noodles The go-to quick meal for university students could be improved with Prairie peas

uick, easy and tasty, but a bit too high in Yellow peas were milled into coarse semolina, heat fat and salt and a bit low in nutrition. Ever- treated, and then roller milled into flour. Non-heat popular instant noodles could be improved, treated yellow pea semolina was also milled and re- Qbased on results of Canadian International ground into flour. Each pea flour was then blended at a Grains Institute research focused on developing new level of 20 per cent with CWRS flour for instant noodle uses for Canadian pulses. processing. CWRS flour was also used to process a Since 2014 Cigi has been conducting a four-year wheat control sample for comparison. project funded by Pulse Canada and Agriculture and Agri-Food Canada in consultation with industry to The right texture investigate the quality, functionality and nutritional Results revealed that the wheat noodles had the most value of pulses as a commercial food ingredient. acceptable texture followed by those made with non- “We’re looking at the effects of processing and opti- heated treated pea flour and heat treated pea flour, mizing pulse ingredients for specific applications,” says respectively. Acceptable texture is characterized by a Heather Hill, project manager, pulse flour milling and firm bite, a common consumer expectation from the food applications. “Cigi has evaluated the use of yellow traditional use of wheat and the gluten it contains in the pea flour in instant noodles and breakfast cereals. Work processing of noodles. Noodle elasticity was reduced in on either pasta or extruded snacks is planned for 2017. noodles made with the pea flours. Yellow peas were selected to explore potential opportuni- Many consumers, depending on the demographic, ties as ingredients since acreage grown is relatively high prefer a rubbery elastic sensation with a smooth surface but use for food is limited.” when eating noodles. In addition, noodles made with Deep-fried instant noodles are consumed in more the heat-treated pea flour had less pea flavour. than 80 countries and are valued for their low cost, “The non-heat-treated pea flour had a slightly stron- easy preparation, favourable flavour and long shelf life, ger flavour whereas the heat-treated pea flours had less she says. However, instant noodles are also high in fat flavour but noodle texture became much softer,” says and low in nutritional value (protein, fibre, vitamins Hill. “This is interesting because different markets value and minerals). different attributes. Consumers (of instant noodles) in Cigi has been investigating how particle size of the Asia would find texture is paramount whereas in North pulse ingredient as well as post-milling heat treatment America consumers are more sensitive to flavour. It’s affects end-product quality, Hill says. “For noodle work very important to know how processing changes certain we heat treated the yellow pea flour through an extru- quality attributes. sion process to partially cook or gelatinize the starch or “We are now looking at the next steps, taking what flours to not only change their flavour profile and offset we have learned in this work to continue with optimiza- any strong raw pea taste, but their functionality as well.” tion,” she says, noting that different ingredients can be Instant noodles added to improve flavour and texture. made with 20 An important benefit found in the analysis of the per cent yellow instant noodles made with 20 per cent yellow pea flour pea flour had a was a three per cent increase in protein over the wheat five per cent instant noodles, and a five per cent increase over a increase in retail sample, Hill points out. The finding is significant protein as further optimization can be done to increase protein compared to a levels to possibly achieve a nutrient content claim. retail sample. Levels of nutrients such as iron, niacin and potassium were also found to be higher in the noodles made with pea flour. Hill adds that future plans include engaging a commercial noodle manufacturer to help direct noodle optimization and determine what nutrients are important to them in product development. CG

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10106-1B-FT_Print_Ad_CruiserVibranceQuattro_CountryGuideWest.indd 1 1/10/17 4:29 PM crops Guide

When you need great advice

Some tips on choosing the right “It’s in farmers’ best interests to make sure they’re hiring someone with some qualifications to give them person to help navigate the maze crop advice,” Weir says. “I wouldn’t like to get legal advice of new crop varieties and from someone who isn’t a lawyer. I’d be at risk.” Larry Durand, an independent consulting agrologist technologies in Humboldt, Sask., says some growers want to be sure By Ron Friesen they’re at the cutting edge and not missing out on new developments. Some, especially large operators, don’t here was a time when growing crops was have time to monitor thousands of acres. Some just want fairly straightforward. You planted in spring, to try out something new but lack the expertise. sprayed in summer and harvested in fall. “Sometimes, frankly, it’s hard to keep up with all the There weren’t all that many varieties to new technology that comes out,” Durand says. “They Tchoose from. Chemical inputs were limited. The pro- might want a professional with the time to look at these vincial guides to field crop protection were only a few technologies and decide which ones are applicable to dif- pages long. ferent farming operations.” Today, there are scores of registered varieties and new ones every year. Crop protection guides are now Do you need help? thick volumes with dozens of brand names, and chem- The first step in selecting a crop adviser is to decide if istries must be rotated to avoid resistance. New crops you actually need one. According to Alberta Agricul- such as soybeans, pulses and corn require specialized ture and Forestry, producers should decide if they are management skills. satisfied that their yields reflect the level of inputs, and As a result, growers can have trouble keeping up with whether they are satisfied with their own crop manage- rapid advancements in technology. Even if they are up to ment knowledge. Questions producers should ask them- date, they don’t always have the time to monitor thou- selves include: sands of crop acres using the new technologies. • Do you have a good knowledge of weed identification? • Can you identify diseases and insects in your crops? The CCA program • Can you interpret laboratory results for soil testing? This is where professional crop advisers come in. • Do you know the best fertilizer management practices A new breed of agronomists called Certified Crop for different crops? Advisers (CCAs) provides fee-for-service crop manage- • Do you know what specialized varieties are best for ment and production advice, backed up by the CCA your particular area? designation to give growers the assurance they’re getting If the answers to these questions are “no” or “not a recognized level of expertise in crop consulting, says sure,” hiring an agronomist might be beneficial. Curtis Cavers, the new chair of the Prairie Certified Crop Now that you’ve decided to engage a crop adviser, Adviser Board, which administers the program in Mani- where do you go to find one? Agri-retailers and chemical toba, Saskatchewan and Alberta. company representatives are good sources. So are crop “As farms get larger and larger in the amount of work- production clubs and government extension personnel, load and number of acres to cover, it makes economic and neighbours may be able to suggest names. sense to have an expert fee-for-service provider for this The best approach is to shop around because the field kind of work,” says Cavers. “That way you’re getting the is limited, and everybody knows everybody else, Durand best available service at the right time, as well as the best says. “If I were a producer, I would definitely ask other recommendations to maximize yields and profitability.” people in the industry.” The CCA program originated in 1991 through the If you’re going to hire a crop adviser, you have the American Society of Agronomy. It was introduced into right — indeed, the responsibility — to question them Western Canada by the Canadian Association of Agricul- first. Durand recommends an interview, either formal tural Retailers (CAAR), whose members often represent or informal, to sound out candidates and learn more U.S. companies. Today an estimated 950 CCA members about them. Questions could include: What is your advise farmers on the Prairies, although not all act as fee- experience? How long have you been in the business? for-service consultants. What’s your education? And — perhaps most impor- The voluntary certification program qualifies agron- tant — what’s your production philosophy? Compat- omists to give farmers information about managing ibility is critical. crops, soil, water, nutrients, and pests. It also provides “You might be concerned about keeping input costs assurance the information comes from a recognized, down but your agronomist may want you to swing for qualified professional, says Jim Weir, executive director the fence (maximize inputs). It might not be a good of the Manitoba Institute of Agrologists. match,” says Durand.

40 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA crop advisers

Agree on fees Signed contracts spelling out terms and expectations, while not mandatory, are a good idea. That way, everyone knows what they’re getting. Per-acre fees are a fairly standard method of payment but the amount will vary with the service. Durand says a one-time consultation can cost as little as 50 cents an acre. But a cradle-to-grave service on a high-value crop such as potatoes, where the agronomist might be out in the field several times a week, can run up to $12 to $15 an acre. On the other hand, some services such as diagnostics or forensics (e.g. spray drift damage) may be charged per hour. Durand also recommends making sure incidental charges, such as lab fees for soil or tissue-testing, are spelled out in advance. Are they included in the fee or are they over and above that? A producer doesn’t want unexpected surprises when the bill arrives. Even though the adviser will provide the best service they can, Durand stresses there is no guarantee for a suc- It’s in farmers’ best interests cessful crop. The producer has to know that going in. to make sure they’re hiring “Personally, I make it clear with clients before I start with them that I’ll make recommendations based on someone with qualitications,” the best information I have at the time. But nothing is says Manitoba’s Jim Weir ever guaranteed. Agronomy is never black and white. It’s many shades of grey,” Durand says. “Once you lay out these things up front, most producers understand that all somebody’s not giving the right information, word gets the best intentions don’t necessarily make a crop.” out pretty quick.” Durand compares hiring a crop adviser to making At the same time, Flaten stresses the CCA board does an investment. You hope the money you put in will give not have the power to force settlements. That has to hap- you more money later on. Good professional advice pen through the courts. If there is a financial settlement, can result in a few more bushels an acre or skipping an professional liability insurance may cover it. unnecessary fungicide application. Higher yields plus lower input costs equal financial CCAs and P.Ags benefits. Although CCA is self-governing, it is not regulated by provincial legislation and does not have regulatory pow- Dispute settlement ers. That belongs to provincial agrology institutes. Insti- But sometimes complaints can arise. Producers may feel tute members have a university education in agrology they didn’t get the right advice or the service was lacking. and possess a P.Ag (professional agrologist) designation. Should that happen, CCA boards have an established CCA is a training program certifying that members procedure to follow. have passed examinations and have the necessary skills Brent Flaten, past-chair of the Prairie CCA board, to do their job. says written complaints can be submitted to a local or Although agrology institutes and CCA are separate, even international board for examination. If the board they complement each other. Agrology institutes are finds the complaint is justified, disciplinary action can provincially legislated bodies ensuring standards and be taken against the crop adviser. Flaten says the Prairie compliance. CCA is a voluntary program targeting CCA board has received a few complaints in the past, agronomists. It is a means of showing they are current although none resulted in discipline. in their field and receive regular, ongoing training. To Flaten says CCAs must follow a high level of stan- be a certified CCA in Western Canada, you first have dards and ethics which are spelled out on the asso- to be a P.Ag. ciation’s website. They must follow generally accepted “As soon as somebody starts providing knowledge practices and cannot offer misleading or detrimental and advice to a third party such as a farmer, the expecta- advice. If they do, there can be consequences. tion under provincial law is that everybody is registered,” “A lot of it is based on reputation,” Flaten says. “If says the Manitoba Institute of Agrologists’ Jim Weir. CG

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 41 crops Guide

CDC Austenson (centre) with CDC Dolly (left) and Xena (right). Austenson is prized for high yields and test weights and Xena for its good fusarium head blight tolerance.

Ph oTO: CFIA Halting the feed barley decline

Many growers still take a yield penalty in hopes of a malting premium, but breeders say feed varieties offer advantages By Julienne Isaacs

eed barley has some tough competition. Once eties, but there’s momentum in the province to discour- the second-largest crop by far on the Prairies, age competition from U.S. corn, says Manitoba Wheat in recent years it’s had to compete for acres and Barley Growers Association chair Fred Greig. with canola and pulses. And while malting “Anything we can do as producers to displace other Fpremiums are still tempting some growers, feed barley countries’ grain from our market, we for sure want to has to compete with cheap U.S. corn and corn gluten. do,” says Greig. As for the formerly touted qualities of barley-fed pork, feeders have had to cut rations because barley and Breeding priorities hogs are both susceptible to fusarium. Most feed barley varieties are still much higher yield- Consequently, over the last 20 years annual Prairie ing than malting varieties, says Aaron Beattie, barley barley area has dropped by about half to roughly six mil- breeder at the University of Saskatchewan’s Crop Devel- lion acres, about half of which is in Alberta. opment Centre. Now, has it stabilized, or is feed barley still in decline? Feed barley is attractive to producers thanks in large part to good genetics, and Beattie’s team is ahead of the Still a staple ration curve in breeding new varieties with strong agronomic Across the Prairies, feed barley is still the cornerstone of qualities and disease resistance. most feed regimens. “When we think about feed barley we have a couple In Alberta, an estimated 60 per cent of varieties of main objectives in mind in terms of characteristics planted are feed varieties and 40 per cent are malting we’re trying to incorporate into those varieties — high barley varieties, according to Alberta Barley, the provin- yield is of primary importance, and good lodging resis- cial promotion organization. Nearly two million acres tance to ease harvest operations,” he says. “We’re also were planted to feed barley varieties in 2015. going for really high test weight in those samples and In Saskatchewan, 2.7 million tonnes of barley were trying to incorporate some good disease resistance.” grown in 2015. “Roughly 70 to 80 per cent of that we Beattie’s program is responsible for some of the most estimate to be feed barley,” says Brent Johnson, vice- widely grown varieties in Western Canada, including two- chair of Sask Barley and chair of the organization’s feed row varieties CDC Austenson and Xena — the former is barley committee. prized for high yields and test weights, the latter for its Most of Manitoba’s acreage consists of malting vari- good fusarium head blight tolerance.

42 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA GROUP feed barley PRE-EMERGENT 14

Beattie says there are new feed barley varieties in the variety registration trial process right now, one of which has shown better fusarium tolerance than Xena, although more data is needed before the “resistant” label can be formally applied. JOIN THE In Western Canada, because any variety can be used for feed, Beattie’s program uses two tactics in its approach to breeding feed UNDERGROUND barley. The first is to make specific crosses for feed-type barley, while the second makes use of existing breeding resources. REVOLUTION “We also have varieties that are initially intended for malting, and if they have good agronomics but lack malt quality they’re per- fectly suitable for feed barley,” Beattie explains. Although the yield of malting varieties is catching up to feed types, Beattie says he’d still give an edge to feed varieties when it comes to lodging.

Asian exports? Domestic demand might be on a gradual decline, but there’s some evidence that new export markets could be opening. Beattie says Canadian feed barley is prized in China for its naturally high protein levels (often 12 per cent and higher) compared to Australian feed barley, where protein levels can often drop below 10 per cent. Johnson says feed barley is attractive to Asian markets because barley-finished pork has superior fat quality. SaskBarley is putting research into whether the same principle translates to barley-fed beef. The organization is also interested in health benefits of barley for both animal and human consumption. “There is work in hogs showing that feed barley has use as a pre-biotic, reducing antibiotic use,” Johnson says. A large body of research also points to its health benefits for human consumption. For the present, the feed barley market is still healthy in Western Canada — but the jury is still out on the future. “I think feed barley will remain the main feed grain in Western Canada but U.S. corn will limit any upside and keep the market under pressure. And with increased wheat feeding we’ll see a slight year-over-year decline in domestic consumption for feed barley,” says Jerry Klassen, manager of the Canadian office for Swiss-based grain Take a stand against resistance. trader GAP SA Grains & Produits Ltd. Klassen is also a long-time feed grain and livestock market analyst. Arm yourself with the residual broadleaf Last August, Klassen was hoping the 2016 crop would come off control of Authority – a Group 14 pre-emergent well, with trade estimates between about 8.2 and nine million tonnes. herbicide. It’s your secret weapon for cleaner Feed prices in the major feeding region of southern Alberta were fields and higher yields. about $170/tonne delivered to the feedlot in mid-August, though those numbers had dropped to $130/tonne in Saskatoon. In Mani- toba, feed barley prices were hovering around $175/tonne, close to PEAS | SOYBEANS | CHICKPEAS corn, and demand had dropped overall. FLAX | SUNFLOWERS | FMCcrop.ca Klassen said the western Canadian hog complex, along with the cattle herd, has remained stagnant or dropped slightly in numbers since 2010 — and with it, feed barley demand. Through the fall, the feed barley market was under pressure in Western Canada due to seasonally low cattle-on-feed numbers and aggressive farmer selling of old-crop supplies. For 2016-17, the industry is anticipating a year- over-year increase in domestic feed wheat usage along with potential imports of U.S. corn and corn gluten, he said. Alternative feed grains will displace barley in feedlot rations. CG

16FMC075_Authority West Country Guide West 1/2 page vertical (3.9"Wx10.75"H) Feb 1 Crop s GUIDE weather

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Snowy c sp old MILDER occasional e THAN USUAL Cold lls * * NEAR-NORMAL snow PRECIPITATION

NEAR- NORMAL TEMPERATURES NEAR- TO ABOVE- AVERAGE COLDER THAN NORMAL SNOWFALL Cold snow AVERAGE SNOWFALL coastal Mild rain stormy periods Variable es heavyat timsnow

British Columbia Saskatchewan National • Feb. 19-25: SeasonableFebruary to cold. A few blustery • Feb.19 19-25: Quiteto cold March this week with some higher 18, 2017 days with higher wind chills at times. Fair, but wind chills. Fair overall but snow and drifting on highlights snow on two or three days this week, mixed with a couple of windy days. Chance heavy snow in February 19 to March 18, 2017 rain on the coast. Chance heavy precipitation. southern areas. Cold, flurries in the north. • Feb. 26-Mar. 4: Seasonable to cold but some • Feb. 26-Mar. 4: Temperatures stay on the cold Winter is expected to maintain an icy grip highs reach double digits in the southwest. Fair side with some higher wind chills. Blustery with on Western Canada well into March while most days with intermittent coastal rain changing occasional drifting. Sunshine interchanges with relatively mild air will engulf many parts of to heavier snow inland. Flurries, cold in the north. occasional snow, heavier in a few regions. Eastern Canada. Apart from a few snowy, • Mar. 5-11: Unsettled with occasional rain on the • Mar. 5-11: Often unsettled and blustery this week milder days in the West, the cold dry air coast and snow to rain elsewhere. Chance of heavy with occasional snow, possibly heavy in places. should result in near-normal snowfall precipitation and strong winds. Thawing in the Some blowing snow. On a couple of fair days look amounts from British Columbia eastward to south but cold, snowy in the north. for minor thawing in the south. northwest Ontario. This weather pattern • Mar. 12-18: Temperatures vary from cold to mild • M ar. 12-18: Sunny skies and seasonable to cold will produce changeable conditions over under blustery conditions. A few highs in the double temperatures on most days but slight warming Ontario and Quebec with the possibility of digits south. Sunshine alternates with coastal rain brings occasional snow and drifting on two or three a couple of heavier snowfall events from and snow or rain inland. days. Chance rain in southern regions. the Great Lakes into southern Quebec. Meantime in far eastern regions of the Alberta Manitoba country, disturbances moving along the • Feb. 19-25: Generally cold with a few higher wind • Feb. 19-25: Fair with seasonable to cold tem- Atlantic seaboard will send milder air and a chills. Expect a couple of windy outbreaks with peratures and a few higher wind chills. Windy at few stormy, wet periods into the Maritimes snow and drifting. Chance of heavy snow in places. times. Snow and drifting or blowing in the south on and Newfoundland. However, precipitation Bitterly cold with flurries in the north. two to three days. Very cold, settled in the north. totals there should end up near normal. • Feb. 26-Mar. 4: Cold to occasionally seasonable. • Feb. 26-Mar. 4: Changeable weather as sunshine Higher wind chills at times with blustery winds exchanges with occasional snow and drifting in causing some drifting in the south. Fair apart from the south. Seasonable to cold temperatures with Prepared by meteorologist Larry Romaniuk snow on a couple of days, heavier in the north. some higher wind chills. Cold, flurries in the north. of Weatherite Services. Forecasts should • Mar. 5-11: Unsettled and windy on a few days this • Mar. 5-11: Variable weather as sunny skies inter- be 80 per cent accurate for your area; week as disturbances race by bringing occasional change with occasional heavier snow and drifting. expect variations by a day or two due to heavier snow and blowing. On sunny days expect Windy. Risk of rain in the south. Some thawing. changeable speed of weather systems. slight thawing in the south. Cold in the north with scattered snow. • Mar. 12-18: Seasonable to cold under sunny skies • Mar. 12-18: Often sunny but snow and some rain Editor’s note and a few higher wind chills but expect minor falls on a couple of windy, milder days. Season- Where’s my weather page? warming and some thawing along with snow and able to cold but with some thawing in the south. Look in every second issue for your month- drifting on two to three occasions. Continued cold in the north. long Country Guide weather forecast during the winter months when we’re publishing every two weeks.

44 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA What’s your cultural intelligence quotient?

Creating an environment that welcomes and is open to other cultures actually helps boost farm performance By Helen Lammers-Helps

long with the country overall, our rural First of all, let’s understand what we mean by culture, communities are becoming much more which includes the values, norms, beliefs, and customs culturally diverse. The evidence is that this that an individual holds in common with a group. is a good thing for agriculture. There is even a “culture of agriculture,” which can AResearch shows that diversity enhances innovation in sometimes include a tendency to knock those who don’t the workplace. As well, agriculture relies on newcomers farm. We do the industry a disservice, however, when to fill the growing demand for workers in the industry. we refer to people as “city slickers” or “citiots,” especially However, diversity in the workplace also poses some considering these are the same people whom we want to challenges, including communication barriers, cultural buy our products. differences, and perhaps most worrisome of all, our own Mann says the first step is to become more aware of personal biases. our biases. Then we should try to look at the situation Any of these can lead to misunderstandings and through the other’s perspective. conflict, says Dr. Sara Mann, a professor in strategic HR Evelina Silveira, owner of Diversity at Work in Lon- management at the University of Guelph. don, Ont., which offers training and publishes Diversity Interacting with people from different cultures and Workplace magazine, explains how different cultural requires what the experts call “cultural intelligence,” norms can interfere with effective communication. While which Mann defines as the ability to interpret and adapt language barriers may be one cause of misunderstand- to others’ behaviour. ings between those of different ethnic backgrounds, less The good news, says Mann, is that we can learn to get better at it. Continued on page 46

Practical tips for an inclusive workplace (Source: Evelina Silveira, publisher of Diversity and Workplace magazine) Some employers may not be aware of the difference it, and don’t anglicize the person’s name or call between equality and equity. For example, equality them a nickname without their permission. is giving everyone Sunday off as their day of Canadians tend to be more casual when it comes rest. But if someone practices a religion that has to names. In high context cultures, hierarchy and Saturday as its day of observance, then giving that following formal protocols are more important. Don’t person Saturday off would be more equitable. use the person’s first name until they tell you to do so. When planning events, be aware of restrictions In the meantime, use the polite titles of Mr. or Mrs. around what foods may be eaten, whether alcohol Avoid making generalizations about a person’s is permitted, and the roles of men and women. culture. For example, if someone is from Romania, If there are language barriers, choose simpler don’t say you have a friend from Poland. “It’s not explanations and use pictures or hands-on the same thing,” says Silveira. “That’s like someone demonstrations to make it easier for workers telling you that they have a friend who is American.” to understand what needs to be done. Don’t assume that you know everything about the area where a person comes from. Our news Too often we are careless with how we say people’s reports likely don’t tell the whole story. names. A person’s name is their identity and we should be respectful. Write the names down phonetically Also respect a person’s cultural norms. “Customs bring to help you remember how to say them correctly. continuity when everything is new for an immigrant,” Don’t laugh if you are having trouble pronouncing says Silveira. “It helps to hang on to something familiar.”

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 45 BUSINESS obvious but perhaps even more important authoritarian or hierarchal leadership style,” Importantly, she adds, “It must be clear are differences in how we communicate. says Silveira. Workers may have been closely that bullying and harassment will not be Silveira explains that while North Ameri- supervised and may not have been allowed tolerated.” cans and Northern Europeans commonly to be innovative, she explains, so it may take “There must be clear communication speak in a very direct and open manner, the workers some time before they are comfort- from the top down and sideways,” agrees other 80 per cent of the world may actually able with being left on their own to do work. Lew Bayer, a Winnipeg-based corporate find this manner of speaking rude. It isn’t that they can’t do the work that civility trainer. “We may believe our way is better, but you are assigning to them. It’s that they are Creating a culture of civility in the work- it is important to understand that these are uncertain about what’s expected of them, place is worth the effort, Bayer says. Research just different styles,” says Silveira, adding and what they’re allowed to do. shows profits are 30 per cent higher, employ- that you may confuse the speaker if you It’s another example of why, when it ees are 30 per cent more engaged and there interrupt a high-context speaker and ask comes to fostering a workplace where diver- is a 30 per cent increase in employee reten- them to get to the point. sity is respected, leadership is important, says tion in these workforces. Leadership styles also vary between cul- Silveira. There must be the same expectations “When understood and effectively har- tures. “Much of the world is used to a more for everyone from the top down, she says. nessed, diversity enables us to work toward

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4652330-1 FEBRUARY DAS_Simplicity_FullRate_15-25x6-5_a4.indd 1, 2017 / COUNTRY-GUIDE.CA 1 11/3/16 7:36 AM common goals and contributes to growth and innovation,” says Bayer. “By building our cultural com- petence, we can bridge cultural challenges and learn RESOURCES to better understand ourselves and others, to prevent The Winnipeg-based Civility Experts Canadian Agricultural Human and rectify misunderstandings, and to communicate offers training in culture, diversity, Resources Council offers some effectively across cultural boundaries.” generational or gender differences. workshops and online training. Striving to create a more inclusive workplace also You’ll also find the free Cultural www.cahrc-ccrha.ca/ has spinoff benefits for families and communities, Compass Assessment Tool to help you Diversity at Work — training, since employees take these good habits out into the determine where your farm business consultation, books and newsletters on world with them. needs to improve. fostering inclusivity in the workplace “Incivility happens as a result of habit,” says www.civilityexperts.com/ Bayer. “When you teach civility, people start to and serving diverse clients. think differently. They will understand reciproc- www.yourdiversityatwork.com/ ity, respect, team orientation and problem solving. They will become more engaged.” CG

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s a kid, I can vividly remember one particular occasion sitting Thinking small on the steps in my grandparents’ old farmhouse in the late A1960s looking at an issue of Country Guide. Britain’s “Hands Free Hectare” project is One image from its pages still sticks in my developing the model that you may need memory. It was an advertisement showing Massey-Ferguson’s newest line of tractors. to build tomorrow’s farm on Why did that mental image remain with me all these years? Well, I think it By Scott Garvey / CG Machinery Editor was because those beautifully designed machines represented what was the cutting edge of technology back then. In my mind — and in the minds of others — they, and other tractors like them, opened up a world of new possibilities. Among all the technological advancements those tractors embodied, one of the best was their sheer size. They pushed commonly available horsepower to new highs. The steady growth in power being introduced by all the brands at that time increased farmers’ productivity and led to runaway growth in farm sizes. Farmers who fit the “early adopter” definition back then quickly made use of that extra power and began to grow their operations. It turned out to be the start of what came to be known as the “horsepower race.” Now, not only is that race over, but there are indications that tomorrow’s early adopters may actually head in the opposite direction. “In the past decades, the historical trends in agricultural machinery were clear: bigger, faster, and wider,” said an editorial on agricultural trends in CEMA’s November newsletter. (CEMA is the association that represents agricultural machinery manufacturers in Europe.) “Average horsepower in tractors sold in Europe has continuously increased during the past years (i.e. just as it has here). But this trend is predicted to slow down in the next years and may even reverse in the future.” One of the reasons for that, according to many industry watchers, is that big equipment often doesn’t mesh all that well with today’s focus on precision farming. Now, Britain’s Harper Adams University and Precision Decisions, a private U.K. precision farming services firm, have launched the “Hands Free Hectare” demonstration project, which could be the model of agricultural production that will soon sweep the industry. The Harper Adams working group: (l to r) research assistant Martin Abell, robotics There is nothing big about the equip- researcher Jonathan Gill and Kit Franklin, ag engineering and project manager. ment involved in it. And that, organizers Photos: Harper Adams say, is the point.

48 FEBRUAry 1, 2017 / COUNTRY-GUIDE.CA The team will farm a one-hectare field “With dairy, you’re treating every animal as entirely with small, autonomous machines an individual. Compare that to the arable through the 2017 growing season. The little sector, where combines are getting wider and robots will do all the work necessary to seed, wider, but the yield mapping technology is maintain and harvest the grain crop. still the same. So we get less yield data.” “Automation is the future of farming,” It all means that today’s crop farmers Automation is says Kit Franklin, the Harper Adams project are actually getting more distant with their manager. “We’re currently at a stage where data collection, instead of getting higher the future of farm machinery has got to unsustainable resolution, Blacker says. “So I think we need farming,” says Kit sizes… we are seeing a number of issues, an about-turn in the arable sector to start Franklin, project including reduced soil health through com- looking at things in higher detail, the level paction which hinders plant growth, as well robots could potentially offer and deliver, manager for Harper as reduced application and measuring reso- the way we did it tens of years ago with Adams. “Farm lution critical for precision farming.” our own eyes… looking at things at a plant “Agriculture is suffering quite badly level, as the dairy sector inspires us to do.” machinery has got with soil compaction,” agrees Clive Blacker, For grain growers, reversing the machin- to unsustainable founder of Precision Decisions. “But equally, ery size trend to gain precision means losing we’re getting worse at precision agriculture in the economies of scale and the productivity sizes.” some cases as well. When you compare preci- gains that have pushed equipment to its sion agriculture from a dairy perspective and current size. an arable perspective, we’re miles apart.” Autonomy, however, makes the use of The dairy industry is actually leading pre- small-scale machines practical, letting farms cision agriculture in terms of achievability, attention to detail, and robotics, Blacker says. continued on page 50

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Following Hands Free Hectare Harper Adams University and Precision Decision, the two partners running the Hands Free Hectare project, want to share their experiences growing a crop using only autonomous machinery. They are regularly posting updates on their Facebook page and on Twitter under the This one-hectare field in England will grow a grain crop next summer, worked entirely by name @FreeHectare. robotic equipment. run many small machines simultaneously in, with the integration. We’re taking an off- to it. Then, I think, they’ll catch up. I think we rather than one or two big ones. the-shelf microprocessor with the drone need to show them people want this.” “At the minute we’re doing it with small code on it, and we’re taking an off-the-shelf Really, it seems, that isn’t asking a lot from machines,” says Blacker, of the Hands Free tractor and integrating the two to make manufacturers. The technology already exists. project. “But it could be done with larger them work together.” “As a team, we believe there is now no machines if we so wished. But one of the big The smaller equipment has other advan- technological barrier to automated field opportunities I see is the small scale.” tages for the project as well. agriculture,” Franklin says. “All the building And don’t be fooled by the one-hectare “One of them is the safety aspect,” Frank- blocks are there. The issue is when these field size of the demonstration project. What lin adds. “If it all goes AWOL, it will find a robots are made in a research environment, works in this field can work for commercial hedge or a ditch and it will stop or we can they work when you do a demo, but they producers; they’ll just need more machines. catch it in a hedge, those sorts of things. can be quite glitchy. What we need to do is “We’re using a compact tractor,” says Intrinsically, the smaller the machine, the get it to a point where the day we need to go Franklin. “That’s a 38-horsepower tractor. safer it is.” spraying, the machine will always work. It’s In terms of the implements, we’ll be sourc- But getting grain growers to think small getting that reliability nailed down.” ing them from the grounds-care market. may still require some convincing. “We don’t have all the answers by a long We might be adding a bit more smarts to “If we can get that across to farmers, shot, and we won’t get all the answers from it, adding section control to the sprayer for that these are the benefits of using small this project,”adds Blacker. “But it’s giving us example, and upgrading it with higher-tech machines, and we can get across to legisla- the opportunity to at least learn and prove equipment.” tors that these machines are going to be good the concept. And hopefully it will motivate a The researchers won’t have to spend for the world,” Franklin says, “then there’s no lot of people to start thinking this way.” countless hours in labs writing new soft- reason we couldn’t see them happening com- The whole point of this project is show- ware code and creating new systems to get mercially within the next five years.” ing that technologically there is no reason machines capable of working on their own, But that may depend to a large extent on this can’t be done, and by this time next year although there will be a need to spend some a groundswell of demand from producers we hope to have done it, says Franklin. It’s time doing that. It’s mostly pulling together who will need to be not only early adopters not that expensive. The technology and the the mass of open-source (i.e. free) software but industry drivers, pushing manufacturers costs are not really the issue. It more comes code widely available on the Internet and for field-ready robots. down to legislation, public perception and using common hardware designed for auto- “I think the major manufacturers have farmers’ acceptance. mated control of anything from miniature essentially sat on their hands for the last “This year it’s one hectare,” Franklin says. airplanes in a hobby store to high-horse- five or 10 years,” says Franklin. “I personally “The hope is we can do it again next year power farm tractors. believe that if enough money and effort had and maybe grow it using a larger area. That’s “In terms of the technical equipment, the been put into it 10 years ago, it could have the aim we have, to drive it forward.” automation brain is based on drone code happened then. So I think we’ve really got to “That’s a large part of my project, I think, and drone autopilot,” Franklin explains. drive it from the bottom up and say: this is just to shout and say, ‘This can be done. Why “That’s where the work we do really comes the thing we want and there are advantages aren’t you doing it?’” CG

50 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA Giving our business to India

If we won’t grow our own organic food, these small farmers are more than ready to step in. In fact, they already are

By Gerald Pilger

nce again my perception of our agricultural Inside the factory, over 500 women spend eight industry has been rocked by international hours a day, six days a week roasting, peeling, shelling, travel. This time it was a visit to India in grading and packaging cashews. The legislated mini- December that challenged my perception of mum wage for most of the workers is just US$4.15 per Oorganic production and marketing. day, provided they peel or shell 15 kgs of cashews within First on my list was a cashew processor in Manga- their eight-hour shift. lore on India’s west coast. Canadians might be taken Failure to meet this target drops the day’s wage by 22 aback when they see the “organic” signs in the factory per cent. where cashews are shelled, peeled, roasted, graded, and I won’t even go into the working conditions in the packaged. After all, when consumers think of organic factory. production in Canada, they typically envision an idyllic The next day I visited a spice farm near Goa and to family farm where the entire production, processing, and my surprise, “organic” labelling applied here too. While packaging cycle is completed on the farm, with the food 85 per cent of Indian farms are less than two hectares, shipped either directly to a customer or to a farmer’s this spice farm was 60 hectares and provides 6,000 man market or organic food store. days of employment annually. It is one of the largest Yet here cashews were being sourced not from only spice farms in India. And it is entirely organic! local farms but even from Vietnam and Africa, and the What’s going on? We are told that organics is a First finished products will be as likely to end up in a Cana- dian store as they are on a table in India. continued on page 52

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 51 BUSINESS

World phenomena, and that organic production is unaf- Instead, says Ajanta Industries (a processor and fordable for most people in the world. Yet here I was in exporter of organic cashews), the challenge for farmers is one of the poorest countries of the world, and I was sur- to find the resources to pay for the certification process. rounded by organic labelling. In 2001, however, Ajanta launched a program to And I suspect that both the cashew factory and the assist with the certifications, and it now receives cashews spice farm would disappoint many Canadian consumers from 2,664 farmers with a total of 5,000 hectares. More who purchase cashews or spices based on their percep- than 80 per cent of their raw cashews come from small tion of what an organic farm must be like. farmers who work less than four hectares. This is just one example of a number of close asso- Organics in India ciations between processors and farmers in India. Some In its fact sheet Introduction to Organics, the Ontario are formal co-operatives and some are contractual agriculture ministry defines organic farming as “a holis- arrangements. tic system designed to optimize the productivity and fit- Organic farmers in India also created the Organic ness of diverse communities within the agro-ecosystem, Farming Association of India (OFAI) in 2002, a very including soil organisms, plants, livestock and people. powerful lobby group that is recognized internationally. The principal goal of organic production is to develop In fact this organization is hosting the World Organic enterprises that are sustainable and harmonious with Congress in New Delhi in November 2017. the environment.” India now ranks 15th in the world for organically The fact sheet makes it clear that “organic farming is certified agricultural area with 1.49 million hectares of a method of crop and livestock production that involves organic crops. On top of this, India has another 4.22 much more than choosing not to use pesticides, fertil- million hectares of certified forest and wild areas where izers, genetically modified organisms, antibiotics and minor organic products are collected. growth hormones.” This compares to Canada’s 0.9 million hectares of Organic farming in India grew out of a similar desire certified organic lands. to create a sustainable, holistic farming system. In fact, it India also leads the world in the number of farms was a small group of people from around the world who certified as organic with over 650,000 organic producers. travelled to India in the 1990s for the spiritual teach- This focus on organics enabled India to export ing of H.W.L. Poonja who created the organic farming 263,687 MT of organic production worth US$298 mil- system there. lion in 2015-16. This group hoped such a holistic and self-sufficient According to Indian government numbers, its system would improve the livelihoods of impoverished organic products are exported to the European Union, farmers in northern India, and in order to help drive the U.S., Canada, Switzerland, Korea, Australia, New Zea- movement, they created Organic India, which has grown land, southeast Asian countries, the Middle East, South into a global distributor of India organic products. Africa and others. An important difference between organic production in India and Canada is that rather than having to switch Commercialization of Organics from conventional farming to organics, most India farm- India recognizes the growing global demand for organic ers have always been practising pesticide- and fertilizer- foods and is responding to it in a huge way. free farming. The world’s major food manufacturers are also responding to the growing demand for organics and are seeking to profit from it by acquiring organic producers, U.S. organic food sales by category, 2005-14E processors and brands. There has been massive consoli- $ billion dation within the organic industry, just as in the rest of 40 the agricultural and food sector. As an example, the iconic Kashi brand is now a subsidiary of Kellogg. Dannon has Fruit and vegetables acquired Stonyfield, Coca-Cola has acquired Odwalla and

30 Dairy Honest Tea, and General Foods now owns the Lara Bar and Food Should Taste Good brands. Beverages Dr. Philip H. Howard of Michigan State monitors industry ownership of organic brands, and he main- 20 Packaged/prepared foods tains an online listing with graphics showing the exten- Breads and grains sive mergers and acquisitions of organic brands at msu. edu/~howardp/organicindustry.html. Snack foods 10 Meanwhile, conventional and organic farmers in Meat, fish, poultry Canada continue to fight amongst themselves over which system is more “sustainable” and “natural.” Is 0 Condiments summer fallow or post-harvest glyphosate a more sus- 2005 06 07 08 09 10 11 12E 13E 14E tainable practice? The camps argue whether a natural Note: E=estimate. pesticide or synthetic pesticide pose a greater health risk Source: USDA, Economic Research Service using data from Nutrition Business Journal. even when they have the same chemistry and are used

52 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA for the same purpose. They both make wild accusations ity price outlooks and the market frustrations of selling about the safety and quality of the other’s produce, with conventional commodities in an oversupplied market, claims that can mislead and confuse the consumer. it is something that Canadian farmers need to consider. Demand for organic production continues to grow, Instead of looking at an all-or-none switch to organic and I wonder if those farmers who truly believe in the production, I wonder if it is possible on a conventional organic production model will ever be able to meet the farm operation to look at organic production simply as a demand they have created. Are there enough produc- speciality crop. Is it possible for a mixed-farm operation ers willing to forgo the higher yields that man-made to rotate hay or pasture land which has not had appli- fertilizers and chemicals offer? Or have organic produc- cations of synthetic fertilizers or pesticides to organic ers backed themselves into a corner with the growing crops for a number of years? Is the premium offered public expectation that no fertilizers, pesticides, or even for organic production enough to justify the costs of modern breeding techniques can ever be used in organ- certification for an organic rotational crop? Would con- ics, despite the fact that such management practices can ventional farmers be willing to follow the acceptable improve the environment and increase sustainability? agronomic practices required for organic production in If perennial cereals, which could be a boon to sus- the same way they already modify and adapt farming tainable farming and the environment for both con- practices and equipment for new speciality crops? ventional and organic growers, were developed with a While Canadian farmers are not meeting our own technique such as gene editing, would they be outright demand for organic production, you can be sure some- rejected by consumers and the organic lobby because one somewhere will be willing to grow what consumers they are not natural? are seeking. While Canadian farmers can’t compete with some And don’t forget, organic is still growing. Indeed, of the organic production out by India, such as cashews, it isn’t even limited to food any more. A new blue-jean 50 per cent of the organic production that India exports manufacturer is now marketing their jeans as “made consists of oilseeds. Canadian producers could certainly with: 100% organic cotton denim, social responsibility compete for some of this market. And given commod- and transparent production.” CG

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COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 53 business By Gwen Paddock / senior Director, Agriculture, RBC

objectives will depend on the fol- Create your foreign lowing factors: • The impact foreign exchange exposure has on your operation. exchange strategy • Which currencies you’re trading in. • Your risk tolerance and attitude towards the business. • Your level of knowledge and com- Can you afford to be exposed to the fort with financial markets and risks of volatile currency markets? instruments. • How much control you have over hen it comes to to transfer it to someone else such as the farm’s financial management. managing risk to a supplier or end-user. Once you’ve determined your their operations, Most Canadian farms and objectives for managing foreign farmers are well ranches will have exposure to U.S. exchange risk, be sure to draft a Wversed in the usual suspects — dollar fluctuations on sales and/ written document that you can add whether that’s risks in the field like or purchases, and it’s important to to your overall business plan. adverse weather, disease and equip- consider some key questions: With objectives in place, it’s ment failure, or whether it’s spiking • What are the potential losses or time to implement your strategy. interest rates, lack of adequate cash gains if the Canadian dollar rises, A foreign exchange specialist can flow, or being over-leveraged. But or falls, over the next few months, help you decide which vehicles to one often overlooked risk is when even if it changes by just a few use, including spot transactions, for- dealing with foreign currencies. cents? ward contracts and foreign exchange Since agriculture is a largely • What do those potential losses or options. Find out the costs and export-focused industry in Can- gains translate to as a percentage of determine which solutions are best ada, it is susceptible to volatility in sales and profits? suited to meet your goals of risk exchange rates. Indeed, after cost • Can any losses be passed on reduction. of production, perhaps the most through higher prices, or trimmed As with your overall business important cost for farmers to know out of operating costs? plan and budget, your FX plan is is that of the dollar and its value Also, assess the three Vs: the of no use if it’s not producing the against other currencies. amount of money that is exposed desired results. Make sure you review So, do you need a foreign (volume), how quickly the exchange and track the performance of every exchange strategy, or can you rate may move (velocity) and the vehicle. What is the result, and how improve your existing strategy? impact of potential rate fluctuations does that compare with the result if (volatility). you had not used that vehicle? Assess your risk The information you gather will It’s not a question of whether you Create your FX strategy help decide if your current strategy will or will not have risk, but rather While there is no single strategy for is working to protect you against what is your risk. managing foreign exchange risk, the risk, and whether the savings justify The purpose of a foreign most important thing is to take a the cost. CG exchange (FX) strategy is not to disciplined approach and apply it make money, but to prevent losses. consistently. Two common ways of The first step to protecting against protecting against future rate fluctu- the possibility of loss is to identify ations are by hedging forward con- where your farm has exposure to tracts or via options. foreign exchange risk. The most On the other hand, some pro- common areas are the prices of agri- ducers may choose to “go naked” culture products (since many agri- and remain exposed to fluctuation cultural commodities are priced in risks. This can be a strategy in and U.S. dollars) and the prices of some of itself, and sometimes it can work Gwen Paddock, senior director, inputs. Another area of potential in their favour. But given that no agriculture at RBC is a specialist in exposure is bound up with capital one can forecast the market, can you agribusiness. Since earning her B.Sc. with equipment purchases. afford the risk of exposure? a major in agriculture economics she has One recommendation is to been working with agriculture clients. A farmer at heart, Paddock was raised on a The three Vs lock in your FX strategy at the beef cow-calf farm outside Guelph, Ont., same time as your selling price on Once you’ve identified the areas of and participated in 4-H and Junior risk, determine how much exposure the sale of commodities to man- Farmers. To find out more visit www. you have, and what your options are age foreign fluctuations and price rbcroyalbank.com/commercial/ to mitigate or eliminate the risk, or risk. Whatever your approach, your agriculture

54 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA Common foreign exchange myths Don’t let the following common foreign exchange myths steer you away from creating a solid FX strategy:

1. The market can be forecast. 3. My operation is too small • No one can predict exchange for an FX strategy. rates with absolute certainty. • No business is too small • Dozens of factors influence FX rates. to protect profits. • F orecasts are based on past • Commonly used strategies are assumptions that don’t always scalable for any size business. translate in future. • A strategy only requires you know your risks and options. 2. I should make money at foreign exchange. 4. Quotes from big banks aren’t as • A s a byproduct of your business operations, competitive as FX boutiques. FX can have an impact on profitability. • Ensure you’re comparing • FX risk management takes resources apples to apples. away from your core business activity. • Timing is key; make sure dates, amounts • W hile FX fluctuations can result in and other critical terms are identical. profits, they can also result in losses. • Quotes must be firm.

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COUNTRY-GUIDE.CA / FEBRUARY 1. 2017 55 BUSINESS

Can you count on AgriStability?

A lot depends on the kind of operation you’re running, and whether you use family labour By Glen Mumey

ue and Jim started farming by buying 300 of time, like machinery, are excluded. Wages of family acres, with buildings. By renting additional labour are also excluded. land, they quickly expanded to 2,500 acres. To find what AgriStability will pay, a farm’s bad-year They supported this expansion with machin- margin is compared with its previous five-year average Sery that was mainly leased, and hired custom harvest- margin. That seems straightforward, but fine print was ing. They relied on a bank line of credit for much of added in 2014. Now, the bad-year margin is compared their operating money. with the lower of past margin or past costs. The logic The last five years were good, enabling them to build seemed to be that one would not want to pay a farm that up equity at over $80,000 per year after-tax. (Most of this was still covering most or all of its costs. However, that $80K was used for principal payments on their land and 2014 condition has a peculiar effect, as we shall see. With for improvements to their grain storage.) it, payments to farmers are seriously affected by the pro- Because they were still very thinly financed, they portion of their total expenses that are eligible expenses. recognized that they had risk exposure, and to protect themselves, they bought crop insurance to protect 80 per Eligiblp e ex enses $230,000 cent of their yield and participated in the AgriStability (seed, fertilizer, hebicides, fuel, crop program. insurance, etc.) They were full of enthusiasm and were anticipat- Ineligible expenses $370,000 ing the purchase of some adjacent land that was being (machinery lease payments $70,000 + offered at a favourable price. custom harvesting $60,000 + rent Then a bad year arrived. Crop yields dropped by 20 $150,000 + interest and property taxes per cent and prices also took a hit, cutting their gross $30,000 + salary to family $60,000) income to $400,000 from a previous five-year average of $700,000. The yield reduction was not enough for a crop Total expenses $600,000 insurance payment, although because their costs stayed about the same, their profit margin was drastically worse ELIGIBLE EXPENSES ON THE S & J FARM than their five-year average. To understand the AgriStability decision, we must look Since their income drop was so deep, they were con- at Sue and Jim’s expenses, shown above. These are about fident that AgriStability would help see them through the same every year, including during their bad year. this rough situation. However, they were surprised to We can see that many of the expenses are ineligible, find that AgriStability would pay nothing. They had to and not considered by AgriStability. This ineligibility confront their banker, landlord and equipment lessor on then caused AgriStability to deny support to the farm. their own. HOW AgriStability SETS THE HOW AgriStability SETS PAYMENTS PAYMENT FOR Sue and Jim’s farm AgriStability payments are based on a comparison of a Since AgriStability looks only at eligible items, it sees bad-year margin with past margins. Margin is eligible their bad year as $400,000 eligible income and $230,000 income minus eligible cost. Eligible income excludes eligible cost, leaving $170,000 for the bad-year margin. non-farm income — for Sue and Jim, all income is from That margin is low when compared to past margins, but the farm and eligible. it’s not so low compared to the five-year average cost of Cost eligibility is a more complex matter. Money paid $230,000. In fact, according to AgriStability rules, the for items bought and promptly used up, like fertilizer on bad-year margin is too close to past average cost to qual- a grain farm, is counted. Items used over longer periods ify for payment. Hence, Sue and Jim get nothing.

56 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA CONSEQUENCES ON THE S & J FARM more long-term inputs, such as land and machinery, How bad is this situation for Sue and Jim? They are will have low ratios. Also, farms that rely more on family responsible for all expenses, not just the eligible ones. labour will have lower ratios. Their total expenses are $600,000, and they have only Spreadsheet experimentation by the author (copy $400,000 income in their bad year. They have a modest available on request) suggests that when your eligible- reserve deposit, but that is largely offset by required prin- cost over total-cost ratio drops below 0.7, much of the cipal payments. effectiveness of AgriStability has been lost. (The ratio for What can they do? They can cut their standard of the Sue and Jim example is 0.38.) living with reduced salary, although $60,000 pre-tax is not exactly a bonanza if they have a couple of kids in THE AgriStability PAYOUT school. Maybe they can remortgage their land, or maybe METHOD AND POLICY they can get deferments from some of their creditors and These differences in benefits have implications both for landlords. farm management and for public policy. For manage- They probably have an established reputation for ment, if your eligible cost ratio is low, you may still want honesty and hard work, and very likely they will get to participate in AgriStability because premiums are very by. But surely the situation is not a pleasant one, and low. Participation might help in a severe catastrophe. But probably their hope of buying the adjacent land is extin- with a low ratio, you should look carefully at your risk guished. situation and not count too much on AgriStability. We wish them well. But, had they realized the limita- For public policy, one must ask, are there ways to stop tions of AgriStability they might have planned differ- AgriStability from tipping its payments toward some ently. They might have included some price protection types of farms (i.e. farms more like the commercially in their insurance package. They might have negotiated run feedlot) and away from those more like family grain a longer term on their land payment, and retained a farms. One possibility is to broaden cost eligibility. True, little more cash. They might have squeezed their costs some costs are difficult to measure, but approximating and living standard more, despite their farm’s apparent them may still lead to a better program. profitability. Are there ways to stop CONSEQUENCES ON OTHER FARMS Has this been a contrived example? Yes, in the sense that AgriStability from tipping Sue and Jim are fiction, but not in the sense that similar its payments toward some circumstances are likely to prevail, especially on some kinds of farms. types of farms, and away from For contrast, consider a large feedlot run with hired family grain farms? management and labour. Feedlots live hand to mouth, so nearly all expenses (feeder purchases, feed, hired A second possibility would be to revoke the 2014 staff, etc.) are eligible expenses. For an informative condition, which meant baseline cannot exceed historic approximation, make all expenses eligible and use the cost. While probably well intended, this condition is the income and expense experience in the same ratio as in major trigger of the uneven effect of AgriStability on dif- the example we ran with Sue and Jim. With that ratio, ferent types of farms. we can set an example where the feedlot’s five-year Either of these changes would, of course, increase numbers are $7 million eligible income and $6 million program payouts and, therefore, its cost. But even if no eligible cost. more public money is allocated, other ways to econo- In that version, the bad-year income drops to $4 mize, such as reducing the $3 million payment cap, million while expenses stay at $6 million. AgriStability might be introduced, to allow program benefits to be recognizes a negative $2 million margin in this bad year. distributed more equitably. That’s very low compared with past margin, and it’s also If subsidization of farming is regarded as a good use very low compared to past eligible costs. Accordingly, the of taxpayer money, AgriStability is not a bad program. feedlot is likely to get a payment in the millions. It discriminates against some producers, such as grain Was this another extreme situation? Yes, but again, farms and family-operated farms, but at least it pays out not on some kinds of farms. There are many farms with to its beneficiaries at times when their needs are greatest. different cost structures — dairies, beekeepers, orchards, And there may be ways of improving it. and so on. In general, for the individual farm, the ratio For the potential users, it needs to be regarded as just of eligible costs to total costs determines AgriStability one part of a risk control program, valuable on some effectiveness. farms and not so good on others. CG Farms that are more like feedlots, with a large proportion of expense items used up in the current year, Glen Mumey is emeritus professor at the University of Alberta will have high ratios. Those like grain farms that employ who has taught and conducted research in agricultural finance.

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 57 hR By Pierrette Desrosiers / work psychologist

others’ concerns or even reject criti- of charisma cism. Furthermore, people who have A question charisma also know how to say that they have doubts, uncertainties, fears and desires, thereby making connec- Good leaders seem special. It’s a talent you can grow tions with others.

eople with charisma risks for their projects. Therefore, Q: “Am I at ease sharing stand out. It’s a trait that accept being unconventional, and my emotions?” we associate with leader- invest in yourself emotionally and Practise it. It will benefit you. ship — that something financially. At the same time, dedi- Listen to, respect and think about Pspecial that makes an individual cate a good part of your time to your other people. Above all, try to seem exceptional. mission, projects or other causes that understand others before being But it turns out that charisma are important to you. understood. Develop a healthy curi- has little to do with good looks, osity about the people to whom you wealth, titles or authority, and Q: “Where do I see my business are speaking. Take an interest in although it can seem that individu- in two, five or even 10 years? them and respect differences. als with charisma must have inher- What will it look like?” ited it at their birth, we now have a Communicate your vision. You Q: “When I communicate, do better idea of its actual ingredients. have to know how to communicate I really want to understand In fact, charisma isn’t what we your project or vision as well as pos- the other’s point of view?” would call a “natural” quality at all. sible and be able to talk intelligently Recognize and value other people. You aren’t necessarily born charis- about an emotional subject. Charismatic people publicly recog- matic; you become that way. nize other people’s contributions. This means you can actually Q: “Do my family and employees They regularly give positive feedback boost your “charisma quotient” by understand my vision?” and praise strengths. People really cultivating the ingredients that go Know how to smile. Talk with appreciate being recognized, and they into making a person charismatic. your hands, express yourself clearly, feel heard, supported and respected Chief among these ingredi- be enthusiastic and dynamic, listen when others show them empathy. ents is trustworthiness, says author and do not judge. You must master David Hosager. “Trust has the abil- your emotions. That does not mean Q: “How do I recognize ity to accelerate or destroy any busi- containing them or not expressing others’ contributions?” ness, organization or relationship,” them but rather knowing how to Remember that, whatever you Hosager says. “With greater trust recognize and manage them — in do, charisma resides in the way oth- comes greater innovation, stronger short, how to use them appropriately ers perceive you. brands, increased retention of good depending on the circumstances. How much charisma and what people, higher morale, multiplied style of it do you have? Curious? productivity, better results, and a Q: “How do I contaminate bigger bottom line.” others?” Take the test: The take home is clear. Be sure Emotions are contagious. As a What is your charisma quotient? to walk the talk, but also take a hard leader, you have a huge impact on http://pierrettedesrosiers.com/outlook at the following questions. others, so be consistent. To evaluate ils_en.html CG your charisma potential, it is crucial Q: “Am I trustworthy? Do I keep to analyze, several times if neces- my promises to everyone?” sary, the way you behave in your pri- Have a vision. As a manager or vate life. Am I a charismatic leader boss, give meaning to everything you with my friends? With my kids? If do. Have a vision for both direction the answer is yes, you can then try and content. Ideally, that vision or to reproduce certain attitudes and grand project must align with your behaviours outside the home that company strategy and be consistent you adopt in your private life. with your own personality. There- Be confident while remaining Pierrette Desrosiers, MPS, CRHA fore, take some time to reflect on your accessible and human. Undeniably, is a work psychologist, professional vision for your future and that of there can be a thin line between con- speaker, coach and author who your farm. Write it down so you can fidence and pretentiousness. Having specializes in the agricultural industry. She comes from a family of farmers and she articulate it clearly and consistently. a clear vision of the future and con- and her husband have farmed for more Find stimulating projects, and get fidence in your methods and values than 25 years. Contact her at: out of your comfort zone. Individu- doesn’t mean that you have to be [email protected]. als are capable of taking calculated stubbornly sure of yourself and deny www.pierrettedesrosiers.com

58 A FEBRU RY 1, 2017 / COUNTRY-GUIDE.CA The Canadian Association of Farm Advisors (CAFA) Inc. is a national, non-proﬁ t professional umbrella organization dedicated to assisting farm families and businesses by increasing the skills of farm advisors and consultants. www.cafanet.com

February 9 in Red Deer, AB Payday on the Farm March 23 in Ottawa, ON.

BY THOMAS BLONDE, B.SC. Additionally, unlike wages and custom work, (AGR), CPA, CA, CAFA, PARTNER, dividends are not subject to CPP premiums Ownership COLLINS BARROW Communication which would be 9.9 per cent of income between $3,500 and $54,900 (in 2016). Farm Family hen it it’s time to pay yourself, your Of course, if no CPP premiums are paid family members and other sta there will also be no CPP bene t. erefore, if a W on the farm it can be surprisingly dividend strategy is to be followed, plans should confusing. Should I pay wages or custom be made to save for retirement through other work or maybe dividends? Or is there another means. option? What is best? is article highlights the Also due to the nature of how dividends are considerations for the most common options. Farm Succession reported, they will not generate RRSP room and Update may also limit your ability claim some tax credits Wages 3 CIRCLE MODEL IN-DEPTH (i.e. donations, medical expenses, Alternative Individuals who are paid wages are employees Minimum Tax) and may also reduce your OAS, subject to monthly withholdings for Canada Canada Child Bene t and other income-tested THURSDAY, MARCH 23, 2017 Pension Plan (CPP) and Employment slip is required. However, the recipientHilton Garden must Inn bene ts. Insurance (EI) premiums and tax which are normally register and charge GST/HSTOttawa, Ontario on typically required to be remitted to the CRA income received. CPP and tax are still payable Rent monthly. Depending on the province, workers but on the recipient’s tax return rather than Rent can be paid on assets owned outside the compensation and employee health tax through monthly remittances. business — such as personally owned land premiums may also be payable. e recipient must prove to be an rented to an operating company. No CPP A T4 slip must also be prepared before the independent contractor and not an employee. premiums are payable on rental income but end of February the following year. e CRA has a list of criteria that they look at GST/HST is normally payable. Wages can be paid to family members, to determine if this is the case. For example, if An advantage of rental income over including spouses and minor children. However, the recipient only has one customer, it increases dividends is that it can generate RRSP room and the wage must be reasonable for the work the risk they will be assessed as an employee. not a ect tax credits and income tested bene ts performed. If assessed as an employee, the business as much. owner will be liable for unpaid payroll Contract Work remittances and associated penalties and Loan repayments If you pay amounts as custom work, you are interest. erefore, when in doubt it is o en If you transfer an asset into the farm business, a not subject to any withholdings (i.e. CPP, better to err on the side of caution and insist loan will be created that can be repaid tax free. In EI, workers compensation etc.) and no T4 that these individuals be paid a wage as an fact, it may be possible to transfer in a qualifying employee. farm asset (such as land or production quotas) using the capital gains exemption to create quite Dividends a large tax-free loan. Interest can also be charged Dividends are an alternative method of on these loans, but any interest would be taxable payment if the business is incorporated. income to the recipient. No monthly remittances are required by the CRA for dividends but a legal resolution Conclusion and a T5 slip must be led before February of e above o ers just a brief explanation of the following year to report the dividends paid. di erent remuneration options. ere is not A major advantage of dividends is that enough space to outline all complexities. they do not have to be reasonable for the work Whichever option you choose, be sure to talk to performed. is provides an opportunity to your accountant to ensure it is the right choice easily split income among family members. for your business.

Toll free: 1-877-474-2871 Email: [email protected] PO Box 270 • Seven Sisters Falls, MB • R0E 1Y0 Follow us on Twitter @CAFANET life

Rural distress A s Jane’s story shows, spousal abuse is a stubborn fact of life for many country women By Lisa Guenther / CG Field Editor

he was a rodeo queen with a wide circle of “We have some work to do here,” she says. friends that included both men and women. Part of that work is making sure everyone — includ- And she still loves horses, although she’s had ing employers, colleagues, friends, and neighbours — to put her equestrian activities on the back recognizes the signs of an abusive relationship. Marks Sburner until she recovers financially. and bruises are red flags. Calling in sick frequently is I catch her on the phone one evening after work. She another, says Dusel. is calm and thoughtful, pausing as she answers my ques- And an abuser’s tendency to isolate the victim is tions. I wonder if she learned that carefulness by testify- a big flashing neon sign. If someone stops coming to ing in court. town, or answering the phone, or if her partner takes For the purposes of this article, we’ll call her Jane over the phone conversation, speaking for her, “those Smith. That’s not her real name, but publishing her true are warning signs that are especially dangerous in a identity, or even identifying which rural community she rural area,” says Dusel. calls home could put her at risk. Because although Jane Jane’s ex (Larry Jones — also not his real name) Smith might not fit the stereotype, she is a domestic started cutting her off from her friends shortly after they abuse survivor. And it took her over seven years to walk. got together. “If I was friends with any ex-boyfriends, he would There was not a stitch just tell me straight out that he did not want me to talk to them at all,” she says. Jones’ rationale was that it would of me left, or anything be healthier for their relationship, she adds. personal or anything private But it didn’t end there. He started in on her other male friends, so she felt she had no choice but to end left,” Jane says. “He really those friendships too. “Shortly after the male friends left had taken everything.” my life, then he would start on the female friends.” He listened to her phone conversations and talked into them. He combed through her phone records, questioning her What does Jane wish that people in rural communi- about them. “And the questions would turn into fights.” ties would learn about domestic violence? “Work was a little bit of a reprieve because I had sup- “People should know it probably happens more often port. They could see what was happening,” Jane says. But than they think,” she says. Jones would call her on her cell and work phone, some- Jo-Anne Dusel is all too aware of how prevalent times 50 times a day, she says. If she was out meeting a domestic violence can be in farm country. Dusel worked client, he would drive down Main Street, find her, and at a shelter in Moose Jaw for 20 years before taking come into the client’s place. Or phone the client. It was the helm of the Provincial Association of Transition the same story when she met a client at her office. Houses and Services of Saskatchewan (PATHS). Sas- “The front desk would tell him that I was with a cli- katchewan currently tops the provinces for per-capita ent. And then he’d walk through the front door, and sit rates of domestic violence, Dusel points out. in my office and wait for me until I was done.” He kept

60 A FEBRU RY 1, 2017 / COUNTRY-GUIDE.CA What if an employee is abused on the farm, or at home?

What is a farmer’s legal responsibility harassment from other employees, CFL worked with the Ending Violence if one of their employees is suffering supervisors, customers, and patients. Association of Canada to develop a abuse? Or what if a family member And it also includes harassment outside domestic violence policy. That policy covers is abused, or is an abuser? of regular working hours, such as players, coaches, and other employees. at conferences or work socials. Domestic violence can threaten the The league doesn’t act as criminal safety of the abused employee as Employers can find information about investigators, but instead allows experts to well as others in the workplace. how to respond to domestic violence, intervene. It offers counselling to abusers training opportunities, and prevention All employers need to provide a safe when it’s deemed helpful, and provides plans at www.makeitourbusiness.ca. working space, says Dr. Wendee Kubik. If, referrals and support to victims. If there is for example, an employee reports sexual If an employer, or any other adult, knows a clear and documented case of violence harassment from someone else in the or suspects a child is being abused or or violation of a protection order, the CFL workplace, the business owner must take neglected, they are also legally obligated to will impose sanctions. But the policy’s steps to make the workplace safe, she says. report to police or a child welfare agency. focus isn’t on being punitive — instead it “And if they don’t do that, they are liable.” aims to assess and reduce risk, mitigate How should farmers or other employers harm, and promote positive change. Provincial codes vary, but in Saskatchewan, deal with a worker they know to be abusive? for instance, all employers must Assuming none of the situations above For more information, visit www. develop a harassment policy to protect apply, they could look to the Canadian cfl.ca/2015/08/06/cfl-announces- workers from harassment. That includes Football League (CFL) for inspiration. The violence-against-women-policy/. showing up at her office even after he was tion, as well as any protection orders, and be When it comes to domestic violence, told he wasn’t welcome, she says. sure not to give out information about the many people ask why the victim didn’t The stalking and control left her feeling abused employee’s schedule or whereabouts. leave, or why she didn’t leave earlier. But naked, “like there was not a stitch of me left The receptionist should also be pre- leaving is easier said than done, especially or anything personal or anything private left. pared if the abuser storms in and demands in rural areas. For one thing, more people He really had taken away everything, men- to speak to his current or former partner. have access to guns, heightening the danger. tally and physically.” “There’s a certain way of responding that’s “And that prevents women from leaving. Employers need to make sure employ- calm and rational and respectful to the per- And sometimes it is safer to stay,” says Dusel. ees can talk about abuse without feeling son, because you don’t want to increase their People in remote areas also have less ashamed or worrying about being fired, says agitation,” says Dusel. “But it really, really access to resources such as counsellors and Dr. Wendee Kubik, an associate professor of helps to think those things out in advance.” emergency shelters, says Dusel. There are women’s and gender studies at Brock Uni- Workplaces can get training to help shelters in some smaller and mid-sized com- versity in St. Catharines, Ont. them deal with domestic violence. PATHS munities, she says. “But the location is less Considering that Kubik grew up in Ester- is offering free seminars on preventing and likely to be hidden. More people will know hazy and taught for years at the University responding to domestic violence at work, where it is. You’re more likely to run into of Regina, it’s apt that much of her research Dusel says, and will also do in-house train- people you know in that community. So focuses on farm women. ing for workplaces. there’s less of that sense of confidentiality.” Kubik also advises that it’s important It’s also vital that employers and co- A couple of years ago Kubik ran a focus to be understanding if an abused employee workers know that the most dangerous group at Kamsack, Sask., focused on domes- doesn’t come to work on a particular day. phase is while a victim is leaving, and after tic violence. Social workers, RCMP officers, And employers can connect employees with she’s left. and others on the front lines of the issue resources, keeping in mind it’s the employ- Jane Smith knows this all too well. “It comprised the group. The area includes First ee’s decision to leave or seek help. wasn’t physical until the very, very end.” Nations reserves, and lack of access to a car, Dusel encourages employers to keep As his control unravelled, he became very or not having a driver’s licence, were prob- an eye out for signs of abuse as well. They unpredictable, she says. lems. Other barriers included lack of afford- should ask if the employee is okay, rather As her relationship neared its end, Jane able housing, not enough resources to treat than making assumptions, she says. And researched where she could find help from addictions, victims not having access to a both Dusel and Kubik say workplaces should her office. But Jones discovered who she’d phone, lack of mental health services, and have a safety plan to protect the abused called and emailed, and confronted her programs that don’t work well together. The employee and others in the workplace. about it. To this day, Jane doesn’t know how general area includes many different cul- For example, if the abused employee is he found out. tures, and the focus group said racism was at the front desk, it may be best to move her They changed the locks and installed also a problem, Kubik adds. elsewhere until the situation is resolved, says a security system at her office. “The girls The victim may also fear that the abuser Dusel. Or if she is working in the back, the at work were scared that he’d be outside receptionist needs to know about the situa- when they left.” Continued on page 62

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 61 life

will either harm or neglect pets and live- become either perpetrators or victims, Dusel The culture stock, Dusel and Kubik say. Jane experienced says, as they repeat what they’ve learned. of violence that fear first hand. “There were threats But some of those kids do break the made towards the animals,” she says. Her abuse cycle as they step into adulthood. “It’s It’s a very fine line between what friends and family contacted the RCMP often linked to having at least one really society finds acceptable and what’s because they were worried about her. But good support person in their lives who inappropriate in a relationship, says Jane she didn’t want to endanger herself or her shows them there’s a different way,” says Smith. She cites the romance novel 50 animals by talking to police while she was Dusel. Shades of Grey as an example of the still living with him. That person could be the other parent, hairline dividing the sexy and romantic, Things get even harder if there are chil- an aunt or uncle, a teacher, a coach, or any and the controlling and inappropriate. dren involved. In rural areas, leaving an abu- number of other adults who interact with At first, her relationship with Larry Jones sive relationship often means leaving town. children. Often these kids consciously choose straddled that line, she says. Was he Kids are cut off from friends, cousins, and not to repeat the abuse in order to spare their acting out of love and concern, she the rest of their support network as the fam- future families from the trauma they suffered wondered. Her previous relationships ily moves to an urban emergency shelter or as children, Dusel adds. had been unsuccessful, so perhaps another town. It’s not like changing schools Jane knows how important it is to have he was right — perhaps this was a in the city, Kubik says. people in your corner. Unless you have an better way to do things, she thought. If a farm is on the line, splitting up those incredibly strong support system, it can Then the lines became blurred, and assets is going to be complex and take time. seem impossible to get out of that relation- she didn’t immediately realize that the It’s also very visceral, Dusel says, especially if ship, she says. Her partner became so con- relationship was unhealthy, she says. the farm has been in the family for genera- trolling that even keeping a diary proved tions. The emotion involved in breaking up dangerous because he read it. A new, Both Wendee Kubik and Jo-Anne Dusel that legacy adds to the risk of leaving. And unhealthy, normal had taken over her life, see a need for a culture shift to address an asset-rich farm family may be cash poor, she says. domestic violence. Kubik says young Dusel adds, making it harder for the person “It is really tough to be able to come out boys need to be educated on how to leaving to survive financially. of that cloud and see the whole picture,” says treat girls and women, but she thinks Women who marry farmers usually Jane. this has improved in the last few years, move onto their husbands’ farms, Kubik The realization that she had to leave with media and Internet campaigns. says. That means moving into his commu- wasn’t like a “slap in the face.” But little Tolerance of other forms of abuse, from nity, where people already see him a par- things started to nudge her out of the cloud. sexual harassment to stalking, feed the ticular way, and see the wife as a kind of If she was home alone, her heart would race problem, says Dusel. The bottom line outsider. That can lead to victim blaming, with fear when he pulled into the driveway is that it’s an attitude that says women she adds. and his truck’s headlights illuminated the are less than men. And so-called “locker yard. As time went on, he kept breaking his room talk” about groping women is Support systems vital promises to get help, and she got fed up. She no laughing matter, Dusel says. Anyone who’s lived in a rural community felt like she’d given him an honest shot at has probably attended a fundraising dance changing, she says. “We do recognize the vast majority of for a family that lost their home to a fire, One day, while still in the relationship, men aren’t abusive. But they don’t know faced a health emergency, or suffered an she went to the local RCMP detachment how to interrupt or stop or even respond unexpected tragedy. So why can’t tight-knit after work. She parked her vehicle at a dif- to the men who are abusive,” says Dusel. communities be an asset for domestic abuse ferent business and walked to the detach- Jackson Katz is an author and victims, too? ment so Jones wouldn’t see her vehicle there. lecturer who focuses on gender, Kubik hasn’t seen that happen person- Shaking in fear, she rang the buzzer. No one race, and violence. During a 2012 ally, but says it’s possible. “If both of them answered, so she left. Later she realized the Ted Talk, he argued that violence are from the same community, she’s likely to RCMP’s office closed at 5 p.m. against women is not a “woman’s have some supports.” But while she was leaving Jones, there issue” or “battle of the sexes.” Neighbours can play an important role, was an altercation, she says, and the RCMP especially if a victim is isolated on a farm. got involved. “And at that point, I didn’t have “What about all the young men and “Let the person know, at a safe time, when a choice but to give a statement.” boys who have been traumatized by they’re alone, that you’ve recognized that Jane says she wasn’t thinking about fixing adult men’s violence?” asks Katz. something’s going on, you care about them, the relationship or having charges laid as she gave her statement. It was an emotional pro- Katz sees this as a leadership issue. The and you’re willing to support them no mat- cess, but a relief to let the truth out, she says. responsibility to take a stand shouldn’t ter what they do,” says Dusel. But that talk Then the prosecutor decided to lay charges. fall on boys or young men. It should needs to be kept confidential. It’s especially “And what followed was really disap- fall to adult men with power, he says. dangerous if the abuser hears his partner is about to leave, she adds. pointing. Really, really disappointing.” You can view Katz’s Ted Talk at www. And it’s not just adult victims who ben- Smith says no one prepped her to testify. ted.com/talks/jackson_katz_violence_ efit from community support. Research has A victim’s services worker told her someone against_women_it_s_a_men_s_issue. established that children who grow up wit- would be in court to support her, but she nessing domestic violence are more likely to wasn’t told what the defense was likely to ask

62 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA or how they would make her feel. “They basically said just go in there and tell your story.” Do you know your legal obligations if there are In court, the defense painted her as emotionally unstable, or signs that an employee, neighbour or member someone who was “straight-out lying,” she says, to sow reasonable of your extended family may be being abused, doubt. It had been about a year since she left, she says, and she’d or if an employee is a potential abuser? regained some of her confidence. But she thinks that confidence went against her, as she didn’t look like a stereotypical victim. “Domestic violence is so complicated and the people in it change Resources when they’re out. And it’s so hard to prove unless you have a bruise Looking for more information and resources to deal on your face.” with abuse in your community or workplace? Her ex and his defence presented the judge with their own story. Ontario’s Neighbours, Friends and Family program has “And there was my story and there was his story, and there was no information on everything from safety planning to talking to both proof.” The Crown did call other witnesses to back up her story. “And victims and abusers (see www.neighboursfriendsandfamilies. the defense tore them apart.” ca). Business owners can learn how to recognize Asked whether legal options have improved for victims of domes- and deal with domestic violence in the workplace at tic abuse, Dusel says it’s a work in progress. “It’s not ideal. I think makeitourbusiness.ca. Saskatchewan employers interested people are trying.” in Make it Our Business training can contact Jo-Anne Dusel In 2003, Ontario set up a domestic homicide death review com- of PATHS at [email protected] or 306-522-3515. mittee, which looks for risk factors, patterns, and common themes in domestic homicides. The committee also looks for who knew about Resources are available in every province. In Saskatchewan, the abuse and could have intervened. That process has spawned tar- visit abuse.sk.211.ca/ for a listing of legal resources, geted programs, such as Make It Our Business. FAQs, and more. A map of, and contact information for, Saskatchewan recently started reviewing domestic homicides as shelters across Canada is available at sheltersafe.ca. well. The province also has domestic violence courts in Saskatoon, Some animal shelters are now working with social service Regina, and North Battleford. Eligible abusers can plead guilty and agencies to keep pets safe when their owners leave go through treatment rather than the regular court system. A reduced abusive relationships. Check with your local animal sentence is contingent on meeting treatment requirements. shelters or provincial SPCA for more information. Dusel thinks those courts could change the attitudes that ulti- mately lead to domestic violence and homicide. She says there’s Dr. Wendee Kubik and Jo-Anne Dusel were part of a research growing recognition that to prevent future abuse, abusers need help. team looking at domestic violence in rural and northern As for Jane, she’s been out of that relationship for three years now. regions of the Prairies and the North West Territories. For She’s still dealing with him in the courts, and she says he’s still trying more information visit www2.uregina.ca/ipv/index.html. to manipulate her life as much as he can. “But it’s a hundred times better being away from him.” CG

Register today! Being here ignites the passion back into me. Learnt so many valuable lessons from presenters. Seating is limited. – Jen G., Standard, Alberta, AWC Delegate

LISTEN, LEARN, NETWORK & GROW Open your mind to the endless possibilities. Prepare to be inspired. Acquire the life skills you need to reach your goals and live your life to your full potential. Network with women passionate about agriculture. This conference could be life-changing. Register today! Visit advancingwomenconference.ca or phone 403-686-8407.

HYATT REGENCY CALGARY, MARCH 6 & 7, 2017

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 63

Advancing Women Conference WEST 2017 / Country Guide / 7” x 3.357” GUIDE LIFE health By Marie Berry / lawyer & pharmacist minor cuts and scrapes: Don’t let them get major

our skin protects your Ideally, all minor wounds should be together, and specially shaped self- body from the outside cleaned. Soap and water will do the adhesive bandages are available for fin- world while also regulat- trick. Flushing the wound with warm ger tips, knuckles, and even toes. ing your temperature, so water is also effective and may remove Because strands of gauze can be Yany damage to your skin can result any foreign material from the wound. caught in a wound, opt for an easy- in damage to underlying structures. At one time alcohol was recom- to-remove dressing pad. Everyone has had a cut or a mended, but it stings and is able to Regardless of the dressing you scrape at one time or other. These cause tissue damage at the wound choose, remember to not touch it, usually only need to be covered with site. Now it’s best avoided. because you want the dressing to a self-adhesive bandage. If the wound is bleeding, you remain sterile until it reaches the For larger or more serious wounds, want to apply pressure to help stop wound. you need to get medical attention. Deep it. Then, if bleeding doesn’t stop, Blisters on your feet can be wounds and large wounds may need have the wound checked. problematic, but film dressings like stitches. Wounds that are especially The use of antibiotic creams and Opsite can protect your skin and dirty or that still contain whatever has ointments is subject to more con- reduce blisters. In winter, cracks caused them, may need debridement, troversy because if you’ve cleaned in dry skin around fingernails can that is, the removal of the foreign mate- the wound and covered it, then you develop and often dressings, along rial. You may need a tetanus shot for shouldn’t need the antibiotic. If you do with moisturizers, are used to allevi- puncture wounds such as a nail punc- choose to use these products, remem- ate these. However, cyanoacrylate ture, or animal or human bites. ber that whatever creams and oint- dressings are more effective, and If a wound is bleeding profusely or ments you apply to a minor wound because cyanoacrylate is contained if underlying tissues are exposed, med- will eventually need to be removed, in super glue products, applying one ical attention is a must. Additionally, if which can be difficult and painful. of these glues to these wounds is an you have immune system problems, Rather than automatically apply- option, but make sure you let the then any wound could be serious. ing these topical products, keep tabs glue dry before you touch anything. Minor cuts and scrapes include on the wound and watch for any Regardless of how minor you contusions (i.e. bruises), abrasions (i.e. signs of infection. Remember the may believe a wound to be, it is still a scrapes), and minor lacerations or inci- acronym SHARP, that is Swelling, wound and appropriate treatment is sions. Contusions or bruises do not Heat or warmth, Aches or pains, needed to keep it minor. And remem- break the skin, but are caused by a fall or Redness, and Pus. If you think the ber, if you have any risk factors for blow which causes the bleeding beneath wound might be infected, have it poor healing, for example diabetes, the skin that produces the “black and checked because a prescription anti- immune system conditions or bleed- blue” colouring. Abrasions or scrapes biotic might be needed. ing problems, appropriate treatment are the result of your skin being rubbed Applying a clean bandage to the is even more important. CG against a hard surface, for example a minor wound will protect the dam- knee scraped by a fall from a bicycle. aged area from further damage or There may be some bleeding, and contamination. Self-adhesive band- most scrapes are very painful. Inci- ages are ideal for smaller wounds sions are clean cuts with something and they are available with easy- like a kitchen knife, while a laceration to-remove adhesive which makes is a more jagged tear in the skin, but removing them less painful. both can bleed and be painful. For larger wounds you may need a Before you treat any minor dressing held in place by adhesive tape, wound, make sure you wash your but make sure you choose a dressing hands well because you don’t want large enough to cover the complete to contaminate the wound with any wound. Butterfly closures are ideal for Marie Berry is a lawyer/pharmacist debris that might be on your hands. pulling the two sides of a laceration interested in health and education.

N eext Issu Head injuries can result from any fall or accident involving the head, and everyone from hockey players to children falling from a bicycle can be affected. One of the long-term effects of head injuries is a potential seizure condition, and sometimes later in life an individual may experience seizures but not have a diagnosis of epilepsy. Next issue, we’ll talk about these types of seizures and the medications used to treat them.

64 FEBRUARY 1, 2017 / COUNTRY-GUIDE.CA GUIDE LIFE Hanson Acres

By Leeann Minogue Hanson Acres

y the time Elaine got to the third item on her When it’s -39 C, list, Jeff was wishing he hadn’t answered when she Bphoned. Or, at least, he shouldn’t and no one else have admitted he was bored. “You’re right,” she’d agreed. “It’s way too cold to work outside. But is home there’re a few things you could do in the house.” Frostbite isn’t the only danger Jeff faces. Elaine had taken the kids to Saskatoon for the weekend. She had It may not even be the worst a meeting, and Connor and Jenny were thrilled to spend a couple of down to the second-last item on on the snowy step in his socks. No days with Elaine’s mother. “She said Elaine’s list: install the new lock on jacket. Jeff felt his pocket. No cell- we could go to the museum,” Con- the front door. phone. Now what? nor announced. With his mom and dad away, He thought of the attached “And the toy store,” his little sis- Jeff and Elaine had been more vigi- garage, but the only way in was ter Jenny chimed in. lant about locking the house when through the overhead door. Then With Elaine and the kids away, they were both gone. But last week, he remembered the last thing on and with his parents spending their swirling winds in the porch had Elaine’s list: change the batteries to last week in a Yuma trailer court, forced wet snow into the keyhole, get the garage door keypad working. Jeff had the house and the yard to making it impossible to force a key Without the remote, he wasn’t get- himself. in the lock. ting into the garage. And the sliding Elaine’s job list wasn’t that long, so Jeff got to work. Step 1 was a trip to the shop for a few tools. He put How would Elaine explain it to the kids? on his warmest clothes and headed He could just imagine it. “Your out, startled by the burn of the -39 C air. With just a few steps his cov- father died of stupidity.” eralls were crackling with cold. When the dog heard the shop Elaine had picked up a different doors that led in through the deck door open he came running over door handle at Peavey Mart. “That had been locked for months. Jeff to greet Jeff. The cats, of course, new sales guy helped me,” she said. started to panic. stayed curled up in their pile of old “This one has a code we can punch “I can’t die of hypothermia right blankets. in, so we don’t even need a key.” here on my own damn step,” he Jeff looked around the shop. The It was simple to install. In just a thought. How would he explain that Hansons’ new hired man had left the few minutes, Jeff had the old one off to Elaine? And how would Elaine workbench messy again. Even the and the new one on. “Better check to explain it to the kids? He could just cordless phone was out of its cradle, make sure it works,” he thought to imagine it. “Connor, your father which would annoy his dad to no himself as he slipped out the door, died of stupidity.” end. “Have to clean this place before pulling it shut behind him. Then he Jeff looked past the trees to the they get back,” Jeff thought. took hold of the handle, and found road, not sure if he was hoping that He gathered the tools and started out it worked just fine. The door was someone would drive by the farm back to the house. Usually the dog locked tight. and save him, or that none of the followed Jeff everywhere, but today But what was the code? neighbours would see him. Buddy shot him a look that could Damn. Jeff had looked at that Obviously, his family should only have meant, “You go outside in page when he’d leafed through the never have left him home alone. that if you want. I’m not crazy.” installation manual. He’d taken Then Jeff heard his cellphone Back in the house, Jeff fixed the note of the spot where he could find ringing from where he’d left it dishwasher’s slow leak and tightened the default four-digit code when — lying on the floor just inside the squeaking bolts on Connor’s he needed it. But had he even read the door. Inspired by the glowing bunk bed. He took time for lunch the numbers? If he had, they sure screen, Jeff took off like a shot, run- and a nap before tackling the sticky weren’t in his head now. closet door. By four o’clock he was So there he was, standing out Continued ON page 66

COUNTRY-GUIDE.CA / FEBRUARY 1, 2017 65 GUIDE LIFE Reflections by Rod Andrews retired Anglican bishop ning for the shop at top speed, although, given the slipperi- od, will you supervise a poll for the municipal election?” ness of socks on packed snow, his top speed was quite a bit The weeks leading to election day were chaotic. My super- slower than usual. visor complained, “I feel like I have been run over by three When he made it to the shop, Jeff went straight for the of the four horses of the apocalypse.” cats’ corner, where he yanked a blanket out from under- “RThe four horses are mentioned in the Book of Revelation, the last neath the cat pile and wrapped it around his shivering body. book in the Bible. Revelation, full of symbolic and figurative language, is “Thanks for warming it up,” he told the indignant cats. not easy reading. Many people try to fit prophesies from the book into Next, he found a pair of mitts for his icy feet. And say- contemporary situations. Things rarely work out the way they predict. ing, “Finally your sloppiness pays off, Mark Edwards!” he In November a writer in the National Post wrote about “The reached for the cordless and dialled up the rest of his plan. Trumpocalypse,” a linking of current events with biblical prophesy. An hour later, Jeff was back in the house, feet in his thick- The writer implied the arrival of a new and different world order with est socks. By the time Elaine and the kids came home, he had the presidential election. a pot of chili simmering on the stove for their supper and Why does the word apocalypse, usually used in a religious context, he’d even tidied up the living room. “Nobody needs to know pop up in secular and political discussion? People view significant about that,” he thought, eyeing the front door. historical events as apocalyptic, particularly in years ending in three Over supper, Connor and Jenny told Jeff about their trip zeroes. We were told to expect the end of the world when the calendar to Grandma’s house. “She took us to the bookstore!” Connor turned 1000 AD, thus eliminating invaders, famines and epidemics. announced, pleased. Remember the anxiety when the calendar turned 2000? Airplanes “I got a book too!” Jenny said. were projected to stop flying in the air, but life continued with a few “Yes, but she can’t read,” Connor said, feeling very pleased adjustments to our computers. with himself now that he could pick out a handful of smaller Many saw the tragedy of 9-11, when more than 3,000 people lost words. their lives in one day, as an apocalyptic event. I turned on the TV that Elaine talked about her meeting. “I knew everyone else morning to hear the horrible news. I did not know how to describe on the board was pretty smart,” she told Jeff. “But those guys what was happening. I woke my wife Jacqueline exclaiming, “The were prepared! I’ve got a steep learning curve to climb.” world is coming to an end.” I knew that was not true but the situation Then it was Jeff’s turn. seemed that desperate. “How was your weekend?” Elaine said. “Did you find For some religious folk the word apocalypse means a significant something to do?” turning point. A new job, a divorce, a new relationship, an unexpected “I got through your list. Then I just watched a couple of life change. These could be apocalyptic in personal terms. movies.” Hindsight sheds light on apocalyptic projections. In 1969 Dr. Paul “Oh?” Elaine said. Ehrlich wrote a book called The Population Bomb. Ehrlich attempted “Yeah,” said Jeff. “Fixing that dishwasher leak didn’t take to demonstrate that the human species was reproducing faster than as long as I thought it would.” our ability to feed ourselves. He confidently predicted that by 1980 the “I heard you installed the new door handle.” world would be facing mass starvation unless we took radical steps to “What?” Jeff asked. How could she know? curtail the population. The book painted a bleak either/or scenario: “Thanks,” Elaine said. “We should write the code down stop having babies, or face our doom. But mass starvation and food and put it in the truck and the SUV. riots failed to materialize. “Yeah,” Jeff said, wondering if he was imagining the On the Sunday after the recent American election the Rev. Jeff mocking gleam he thought he saw in her eye. Seaton, minister of Trinity United Church in Vernon, B.C., preached “We wouldn’t want anyone to get stuck outside, not about an apocalyptic week: “This election revealed that there is great knowing the code,” Elaine said. pain, and there are great social divides in the United States, between Now Jeff was sure she knew. those who embrace the possibilities of a rich and diverse and different “How did you find out?” future for the country, and those who hold tightly to an earlier vision “The guy at Peavey Mart called me before he gave you the of the country. And these issues don’t just exist in the United States; default code.” we see the same forces in the Brexit vote in Britain, and in political Jeff shifted from mystified to mad. “He told me he had to developments in Europe. In Canada, our political life draws from put me on hold while he opened another box.” those two sources, and so these are issues for our common life as well.” “He was looking out for me,” Elaine said. “How does he I think of politics as how we organize ourselves to live together, know who should be in my house?” and I see religion as our search for God and meaning. A man came to “He didn’t have to give you the whole story!” Jeff said. my door promoting a get-rich-quick scheme. He assured me it had Elaine just smiled. “I would have known something was nothing to do with politics or religion. I replied, “If it has nothing up when I saw all that cat hair on the back of your shirt any- to do with politics or religion, I am not interested.” He repeated his way. You didn’t take any pictures, did you? For my Twitter claim so I told him, “I am only interested in politics and religion.” He account?” CG replied, “Nobody ever said that to me before.” He closed his briefcase and walked away. Leeann Minogue is the editor of Grainews, a playwright and part of a Suggested Scripture: Joel 2:1-17, Revelation 6 family grain farm in southeastern Saskatchewan. Rod Andrews is a retired Anglican bishop. He lives in Saskatoon.

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