GrainsWest Fall 2019

Fall 2019 Grains West 34 input costs can be trimmed by five per cent, the combination can double the returns per acre. “If you can find these efficiencies it can turn a crop that, for example, was netting $50 per acre into a crop that perhaps nets $100 per acre, and all with the same land base,” she said. Kevin Serfas is managing partner in a large family-run grain and oilseed operation near Turin, and Gerrid Gust farms grain, oilseeds and pulses with his family near Davidson, SK. Both look to improve the efficiencies of their existing farming operations. This may mean farming more land as the opportunity arises, changing acres while staying the same size or it may require farming fewer acres. Serfas, his brother Mark and father Herb crop about 50,000 acres of deeded and rented land. With both irrigated and dryland crops, this year’s rotation includes canola, feed barley, corn and quinoa, a new-to-them specialty crop. They also operate a 6,000-head feedlot. “The farm has had bigger periods of growth over the years, but it’s not like you get up one morning and decide the farm needs to be bigger,” said Serfas. “It is more about taking on a few more acres when opportunities arise. You need to be prepared to act when the opportunity does come along, because it may not come back.” While he seldom says no to an opportunity to pick up a few more acres, that doesn’t necessarily mean the farm grows annually. Year to year, rental land may not be available. “We stay fairly consistent, but we are probably farming fewer acres today then we were five years ago,” he said. While they don’t want the farm overstocked with iron, their field equipment lineup allows the flexibility to farmmore acres as needed. “If we do pick up extra acres in a year, we have extra capacity in our machinery without having to buy more equipment,” he said. “Picking up a quarter or full section may mean adjusting our schedule and adding an extra day or two of field time.” Serfas said the focus has also changed over the years. “Perhaps it was easier to expand 20 years ago because land and machinery costs were lower and we could grow the farm to improve economies of scale,” he said. “Now, 20 years later, my brother and I both have young families. We don’t know at this point if our kids will be interested in farming, but we have to plan for that possibility. We have to be thinking about the next generation and planning a farm that’s not just supporting two or three families, but has capacity to support five or six families.” Gust, brother Billy and father Steve crop about 14,000 acres of grains, oilseeds and pulse crops. Gust said while they have a comfortable land base for three families, they are always looking to improve the quality of the land they farm, increase acres as opportunities present themselves, and much like the Serfas family, to plan for the next generation. “We were fortunate because Dad was always fairly aggressive to grow the farming operation and as my brother and I joined the business we expanded further,” said Gust. “Land ownership has always been a priority.” His father often says renters don’t make the rules. When the Gusts expand, they look for land that is flatter, has better soil qualities or is closer to their farm headquarters. In tandem, they may drop rented land that is less productive or more distant. “Our first thought is to net more with about the same amount or fewer acres,” said Gust. “It is a bit like playingMonopoly where you trade up Baltic Avenue for Park Place.” If they do expand, this usually involves picking up a quarter or half section. It may mean buying part of a parcel of land and renting the balance until they are able to buy. To accommodate growth, FEATURE 100 Two farmers GrainsWest spoke with adjust their acreage strategically rather than buying land for its own sake.