Canada Markets

The most recent informal DTN 360 Poll asked how would you best describe your view of how the year ahead will affect your agriculture operation? This survey comes on the heels of the release of DTN's December Ag Confidence Index, reported at 103.4 based on surveys of U.S. growers. This particular reading came in higher than the 99.8 reported prior to harvest (100 is a neutral index) although the 103.4 is the lowest December reading since the survey began in 2010.

Canadian respondents to the 360 poll suggested 25% of respondents to be optimistic, 38% to be neutral and 37% to be negative given indications of what's to come in the year ahead. More specifically, respondents stated:

-- 25% said they are optimistic and believe opportunities will present themselves to make this a successful year;

-- 38% replied they are neutral; the farm economy could go in either direction;

-- 24% suggested they are negative based on concerns about the potential impact of lower crop prices;

-- 13% said they are negative based on concerns about the impact of higher input prices.

Responses came from the three Prairie provinces as well as Ontario. By province, Manitoba respondents felt the best about the year ahead, with 84% of respondents indicating they were neutral to optimistic. In Ontario, that number was 67%; in Alberta, 58%; and in Saskatchewan, 50%. A total of 50% of Saskatchewan producers were pessimistic with concerns of lower grain prices far outweighing the impact of higher input costs. Next to Saskatchewan, 42% of Alberta respondents provided negative responses, with lower crop prices also the primary concern.

Since the release of this poll, both the CWB and AAFC have forecast that Canadian producers will plant more acres of almost every crop in the upcoming season, a further sign of optimism.

An earlier January informal DTN poll focused on the use of outside data as an operational benchmark. The question asked do you use outside data as a benchmark to gauge your operations performance, (eg. production, financials)? The idea for this poll came from a customer advisory board roundtable discussion at DTN's AG Summit in Chicago in mid-December.

Of the poll respondents:

-- 16% answered yes, they compare their operation's data to projections supplied by government or universities;

-- 16% answered yes, they compare their data with data from other farms;

-- 23% answered yes, they compare their data to information supplied by private consulting firms;

-- 15% answered no, reliable benchmarks are not available for their area and;

-- 30% answered no, this does not interest them.

Thanks to all who have responded to these and other polls. The DTN 360 Poll can be found at the bottom right hand corner of the DTN Home Page. This week's poll focuses on red tape created by all levels of government and how you feel it is affecting your operation.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

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