2022 Grains, oilseeds and pulses sector outlook

FCC Economics helps you make sense of the top economic trends and issues likely to affect your operation in 2022.

The major trends to monitor for grain, oilseed and pulse operations include:

Inflationary pressures on crop inputs
Geopolitical tensions and global trade
It was another extraordinary year in 2021. We witnessed record-breaking drought in parts of Canada and the U.S., unrivalled shipping rate increases and increasingly costly global demand for most crops amid ever-shrinking supplies. In Canada, grains, oilseeds and pulse producers did well, with an estimated 11.9% year-over-year (YoY) growth in farm cash receipts. They took a hit on expenses, as general inflation on goods rose 4.4% YoY, and farm inputs increased, on average, by 12.0% for the first three quarters of 2021.

Commodity prices will continue to boost revenues throughout the 2021-22 and 2022-23 marketing years (MY) (Table 1). We forecast prices for all principal field crops to remain elevated above their five-year averages, even though for all but yellow peas, red lentils and spring wheat, they’re projected 5.1% (canola) to 9.1% (durum) lower YoY in 2022-23... Read More