Grainswest - Fall 2021

Steve Kwasny, Invest Alberta director of agriculture and rural initiatives. “Turning the excess straw from Alberta’s farmers into this light and durable fibreboard is an exciting example of the circular economy at work. Giving farmers an additional avenue to sell their wheat straw, growing jobs in the province and continuing innovation around this novel construction product has some very exciting potential for Alberta.” COST-BENEFIT CALCULATION It’s basic economics that supply rises to meet demand, but it’s not yet certain western Canadian straw will capture the market. “In relation to wheat straw, it’s worth noting that wheat is the number one or two crop we grow in the West in terms of acreage,” said McKenzie. “It comes down to how comfortable a farmer will be with selling his wheat straw once every four years. Plants like the one in Regina have a lot of fertile soil in the area, so that may work in their favour, but you need a large land base from which to draw if you’re only getting a farmer’s straw every four to six years.” Farmers will need to weigh the potential revenue from the sale of their straw against the fertilizer cost incurred to replace those nutrients. “Every grower must evaluate the opportunity for themselves, considering the area they are in, yields, crop rotation and soil fertility,” said McKenzie. “They need to do a cost–benefit analysis around the value of soil quality in the long run, and that is hard to put a price on. There is also the cost of baling, trucking and shipping the straw. If the plant is paying them $50 per acre, it might not make sense, whereas $250 per acre is a different story. In the end, it will no doubt be worth it for some and not for others.” Quality of the wheat straw will also play a part in the success or failure of these facilities, as that will vary based on growing conditions. “For this industry to be viable, the product must be consistent,” said Entz. “I’m sure the people behind the plants have done their feasibility studies, but they must pay attention to things like weather patterns. How does a really wet year affect straw quality versus a dry year?” Underscoring the importance of quality is the story of Isobord Enterprises, which built a strawboard manufacturing plant in the village of Elie, MB, in 1998. Two years later, the company declared bankruptcy. Though various reasons were cited for the plant’s demise, failure to meet the quality demands of customers was considered a factor. “Success in the wheat straw business will mean ticking all the boxes,” said McKenzie. “Companies must have access to a steady supply of high-quality straw, and growers must be paid enough to make it worth their while. Given the massive investment in the Elie plant that proved to be for naught, I hope that current and future operations have learned from the past and are positioned for success.” GROW YOUR WHEAT COLLEC T ION Proven® Seed is a registered trademark of Nutrien Ag Solutions (Canada) Inc. Nutrien Ag Solutions® and Design is a registered trademark of Nutrien Ag Solutions, Inc. 09/21-78262-12 Proven ® Seed is committed to providing superior springwheat and durumvarieties that are recognized for their performance and end-use characteristics. Fromworld class feed barley, to cutting edge spring wheat and the first Clearfield ® durum our line-up is one of the most innovative seed portfolios in Western Canada. This season Proven Seed is excited and proud to be launching seven new varieties. No matter your needs, we have a Proven Seed variety to fit your fields. Only available at Nutrien Ag Solutions ® retail. Visit ProvenSeed.ca/cereals to learn more.