Agroforestry in Saskatchewan: If we grow it, will they come?

Agroforestry is a production system that combines growing woody crops, such as willow, fruit trees, and poplar, with traditional annual crops on farmland or pastureland. Two other related terms are silvopasture, which is the growing of woody crops in conjunction with livestock, and afforestation, which refers to growing trees where none were previously planted.

In the November 2005 throne speech, Premier Lorne Calvert announced a plan to convert ten percent of arable land in Saskatchewan to agroforestry over the next twenty years as a means of reducing Canada’s share of greenhouse gas (GHG) emissions. The province’s agroforestry goals are also an attempt to encourage farmers to adopt alternative strategies to diversify production and increase income.

Several important issues need to be considered for such a program of land-use conversion in Saskatchewan to be successful. First, we need to better understand potential markets, long-term demand, and competition to ensure that such a strategy can be profitable. Second, in conjunction with understanding market potential, we need to develop and test a variety of species suited to growing conditions in Saskatchewan. This might include research into tree improvement for disease, insect and drought resistance, and development of commercially desirable properties. Finally, policy will play an important role in enabling producers to be profitable, and so must be carefully planned and implemented.

Global competition makes positioning of a woody crop industry crucial. Competition is increasing in the forest products industry from developing countries such as Brazil due to inexpensive supply and relatively inexpensive labour. While Saskatchewan has a comparative advantage in land, its distance from final goods markets is a hurdle. These factors will pose significant challenges for growers as they also try to understand how to add value and determine future demands. Considerable market research will be needed to determine demands for a range of products and the processing methods to add value. Moreover, research will be necessary to identify markets in which Saskatchewan growers can compete. Rather than focusing on commodity markets, such as pulp and dimension lumber, where producers have little control over global prices, it will be necessary to identify niche markets, such as those for products derived from willow or fruit and nut bearing species.

The quality and quantity of supply are also important determinants for shaping this industry. Species grown on crown land such as aspen, poplar, and birch will compete with wood produced on private land. Producers must understand the cost differentials between privately produced wood and that which is available on crown land, as well as particular wood properties (e.g., growth rates and other characteristics). Such information will be important so as to determine, from the outset, those species and management practices that will ensure competitive products at the end of harvest rotations.

Research to develop and improve species suited to Saskatchewan’s growing conditions is already well underway. This includes development of varieties better suited to changing climatic conditions (particularly drought) and that are disease and insect resistant. Research is also important for determining crop densities, pruning regimes, and intercropping with traditional plants to maximize long-term profitability.

For example, hybrid poplar is a versatile, fast-growing species that can be easily adopted into traditional farming systems. Research is emerging that identifies alternative species, such as willow, oak, and birch, that might provide other new opportunities to compete in markets for energy, building products, commercial construction, and food products. It is essential to continue research and development to identify new species, particular wood properties, and production processes to provide Saskatchewan growers with greater potential market advantages.

A successful industry must be profitable and cannot rely on government support, but in the interim, policy research is required to determine the strongest strategies for the shift from annual crop production to perennial woody crop production. This includes evaluating the potential for carbon markets, changes to crop insurance for tree species, and tax policies that consider relatively long crop rotations. It will be important to provide incentives for producers to convert to agroforestry systems while simultaneously developing a policy that enables producers to build a competitive and self-sufficient industry.

Ensuring a successful industry based on woody crop production requires a vision based on an understanding of markets and competition, production possibilities, and a policy that enables farmers to be competitive and profitable. It is not enough to begin a wholesale transition from annual to woody crops and expect a profitable industry to emerge. If it is to become a world leader, Saskatchewan must be proactive, forward thinking, and purposefully position itself in the global market.

This blog entry was authored by Hayley Hesseln, an Associate Professor in the Department of Bioresources Policy, Business and Economics at the University of Saskatchewan. To read additional Illative Blog entries or to leave comments on this entry, please visit www.illativeblog.ca. The Illative Blog is an initiative by the Knowledge Impact in Society (KIS) Project based out of the University of Saskatchewan. Email correspondence can be sent to kis.project@usask.ca