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Canadian farmers reap record profits as crop prices soar

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Canadian farmers

WINNIPEG, Manitoba (Reuters) – Canadian farmers reaped record profits last year and are on track to do the same this year, the federal agriculture ministry said on Thursday, as prices for its top crops soared.

Prices of canola hit all-time highs this month, rallying with oilseed rival soybeans, on brisk Chinese buying to produce feed for that country’s rebuilding hog herd. Farm exports in general were stronger last year, the ministry said in a statement.

The record profits come despite disruptions to beef and pork production, as COVID-19 infections forced plants to suspend processing, leading to a backlog of livestock and lower prices. Olymel lp, one of Canada‘s biggest hog packers, has temporarily closed an Alberta plant, forcing it to send some pigs to the United States.

Farmers’ net cash income, a measure of profitability, jumped 21.8% in 2020 from the previous year to C$16.5 billion, driven by increased sales value of the main field crops, Agriculture and Agri-Food Canada said. Net cash income looks to climb another 6.8% this year to C$17.6 billion ($14.06 billion), the ministry said.

Livestock sales dipped 1.9% last year and the horticulture industry also struggled, the farm ministry said.

Demand for Canadian barley has surged, with key buyer China in a trade dispute with usual supplier Australia. Spring wheat, another principal Canadian crop, are trading near more than three-year highs.

($1 = 1.2521 Canadian dollars)

 

(Reporting by Rod Nickel in Winnipeg; editing by David Evans)

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Iran indicts 10 over Ukraine plane crash, prosecutor says; Canada demands justice

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DUBAI (Reuters) – Iran has indicted 10 officials over the shooting-down of a Ukrainian passenger plane in January 2020 that killed all 176 people on board, a military prosecutor said on Tuesday.

In a report published last month, Iran’s civil aviation body blamed the crash on a misaligned radar and an error by an air defence operator. Ukraine and Canada, home to many of those who died, criticised the report as insufficient.

“Indictments have been issued for 10 officials involved in the crash of the Ukrainian plane…and necessary decisions will be taken in court,” Gholam Abbas Torki, the outgoing military prosecutor for Tehran province, was quoted as saying by the semi-official news agency ISNA. He did not elaborate.

In Ottawa, Canadian Prime Minister Justin Trudeau said he was “tremendously concerned about the lack of accountability” from Iran about the disaster.

Canada, along with its partners, will continue to press Tehran to deliver justice and compensation for families of the victims, he told a briefing when asked about the indictments.

Iran’s Revolutionary Guards shot down the Ukraine International Airlines flight on Jan. 8, 2020, shortly after it took off from Tehran Airport.

The Iranian government later said the shooting-down was a “disastrous mistake” by its forces at a time when they were on high alert in a regional confrontation with the United States.

Iran was on edge about possible attacks after it fired missiles at Iraqi bases housing U.S. forces in retaliation for the killing days before of its most powerful military commander, Qassem Soleimani, in a U.S. missile strike at Baghdad airport.

 

(Reporting by Dubai newsroom and David Ljunggren in Ottawa; Editing by Gareth Jones and Mark Heinrich)

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Canadian oil producers CNRL, Cenovus plan new emissions targets, no pivot to renewables

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By Rod Nickel and Nia Williams

WINNIPEG, Manitoba (Reuters) -Canadian Natural Resources Ltd (CNRL) and Cenovus Energy Inc, two of Canada‘s biggest oil producers, said on Tuesday they would set new goals to reduce greenhouse gas emissions but not pivot away from their core businesses.

Oil sands producers, which extract some of the world’s most carbon-intense crude, face investor pressure to reduce their environmental impact. Prime Minister Justin Trudeau plans to raise Canada‘s carbon price steeply over time to position the country for carbon-neutral status by 2050.

CNRL’s corporate emissions-cutting goal will be announced in the second quarter, President Tim McKay said at the Scotiabank CAPP Energy Symposium, which is being held remotely.

The company cut carbon intensity per barrel by 18% between 2016 and 2020 and sees carbon capture as a way to further reduce its environmental toll, McKay said.

It does not plan major investments in renewable energy as European oil majors have done.

“The preference is to stick with what we know and what we’re good at,” McKay said. “There’s going to be a need for oil long-term.”

Cenovus is also planning new emissions-cutting targets and might invest in renewable power partnerships.

“Where we’re likely to remain is focused on oil and gas production,” Cenovus Chief Executive Officer Alex Pourbaix told the symposium. “But don’t look for us to become a late-entrant renewable-power developer.”

Suncor Energy Inc is on track to achieve its goal of cutting the emissions intensity of production by 30% versus 2014 levels by 2030, said Chief Financial Officer Alister Cowan, and is now talking about updating its target beyond 2030.

Imperial Oil Ltd could adopt technologies of parent company Exxon Mobil Corp like carbon capture and biofuel blending, Senior Vice President of Finance Dan Lyons said.

“When it comes to wind farms and solar farms, that’s not really in our wheelhouse.”

Sticking to fossil fuels will jeopardize the businesses long-term, said Keith Stewart, senior energy strategist at Greenpeace Canada.

“They will go the way of Blockbuster Video once Netflix arrived,” Stewart said.

Canada‘s transition to a low-carbon economy could displace up to 450,000 oil and gas workers over the next three decades, TD Economics said.

(Reporting by Rod Nickel in Winnipeg and Nia Williams in Calgary; Editing by Marguerita Choy and Peter Cooney)

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Saskatchewan sees bigger, C$2.6-billion deficit to fight pandemic

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By Rod Nickel

WINNIPEG, Manitoba (Reuters) – The Canadian province of Saskatchewan forecast on Tuesday a C$2.6-billion ($2.07 billion)deficit in the current 2021-22 fiscal year, up from last year’s C$1.9 billion, as the pandemic drives up costs.

The province, whose economy relies on farming, oil production and mining, is running a larger deficit so it can effectively respond to the COVID-19 crisis, Finance Minister Donna Harpauer said.

Canadian provincial governments, like the national government, have run bigger deficits since the pandemic began, trying to slow its spread and buttress economies that lockdowns have hit hard.

With government debt rising, credit rating agencies are watching closely for provincial strategies to tame deficits, TD Economics said in a report last month.

Saskatchewan expects to continue running deficits until balancing the books in 2026-27, the provincial government said while introducing its new budget.

The Saskatchewan Party government, led by Premier Scott Moe, forecast spending to increase by 7% to C$17.1 billion from last year, including costs such as vaccinations, tests for infection and purchases of protective equipment.

It forecast provincial revenues for the 2021-22 fiscal year at C$14.5 billion, up nearly 3% from last year.

Saskatchewan’s real gross domestic product looks to grow 3.4% in 2021 after contracting 4.2% last year, the government said.

The budget assumes an average North American oil futures price of $54.33 per barrel during its fiscal year, generating C$505.1 million in royalties.

Neighboring Alberta estimated in February that its 2021-22 budget deficit would shrink to C$18.2 billion, as its economy starts to recover from the coronavirus pandemic.

 

 

(Reporting by Rod Nickel in Winnipeg; Editing by Marguerita Choy)

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