New opportunities for rye cropping up

Western Canada may be on the cusp of a rye renaissance.

New cover cropping programs and changes to single-use agreements could double the number of Canadian rye acres within the next five to 10 years.

It’s all because of a recent tweak in contractual language from seed companies on their hybrid rye varieties. For many years, the grain of hybrid rye had very specific end uses, but cover crops were not one of them. However, that’s where hybrid rye has appeared over the years, specifically in the U.S. cover crop market.

A grey market was established, but is now on its way out because cover crops are a newly designated end-use for farmers. They can now sell to authorized seed dealers, who can then sell to authorized American retailers.

Hybrid rye seed sales continue to outpace traditional, open pollinated varieties by as much as 30 to 40 per cent. They carry better standability with similar ergot risk and winter hardiness.

The cover crop market in the U.S. is centred around the Midwest, although other select states are increasing acres as well.

“It’s an opportunity for someone like us, an independent seed grower and processor,” says Greg Stamp, owner at Stamp Seeds near Taber, Alta. “Now we can legitimately play in that market.”

Stamp says he intends to look into the program and believes there could be a play if he can secure enough product.

“Then we would secure it in the fall or winter with a partner in the States and then we would clean it in May and June when we’re slower,” he says. “That would get us ahead of that cover crop season. The challenge is that cover crop season. Then we’re busy with our own harvest and our own cleaning of fall crops.”

KWS Seeds and FP Genetics sell hybrid rye in Canada. Both companies have launched cover crop programs that go directly into the U.S. KWS’ Cover+ and FP Genetics’ TruCover are both looking to capitalize on a U.S. market that many estimate is more than 20 million acres in size, and growing.

Kenny Piecharka is KWS Seeds’ country manager for Canada. He says the company did a year-long investigation on intellectual property and how to permit its partners to participate.

“We do really support the sustainability initiative of cover crops and we’re highly invested,” says Piecharka. “It gives farmers who are growing the grain an additional marketing opportunity and a valuable one because right now, if the distilling market is full and if feed prices are low, and they didn’t have access to [the] cover crop [market in the U.S.], it was really doing them a disservice.

“So now they’re able to grow hybrid rye, which yields significantly higher than open pollinated, but they’re still able to sell into all the markets.”

Those who grow hybrid rye can expect prices to vary across Western Canada. Export prices of $8 to $9 per bushel were heard as of mid-July, but there have also been reports of prices reaching $9.50, especially because there’s a shortage of the crop. Geographically, discounts in Saskatchewan could be 50 cents from Manitoba and $1 in Alberta.

Piecharka says the company is also interested in hybrid ryes grown as forages for the animal feed market, which he says only happens about 25 per cent of the time in Canada. It’s attractive for irrigated farmers, who can grow forage rye and cut it at flag leaf, while still growing silage barley or oats in the same year.

Rye is inherently less risky and less laborious than corn. On irrigated acres, Piecharka says the yield target is 160 bu./ac., while dryland in central Alberta may be around 100 to 120 bu./ac. and between 60 to 100 bu./ ac. in dryland southern Alberta.

“Farmers should expect 30 per cent more yield than spring wheat,” says Piecharka. “In a drought, it can be quite a bit higher because of the early growth and usage of spring moisture, while spring crops can suffer from the stress. By the time of the drought stress, the rye is well established and with its early maturity, able to beat most of the heat.”

FP Genetics is also eager to do business south of the border into the cover crop market. In 2023, the company piloted its TruCover program, with formal operations beginning this year once harvest takes place. The company has two hybrid rye varieties available.

“It’ll benefit the seed growers that are able to get authorization to be an authorized TruCover dealer and it will benefit the producers of hybrid rye by giving them an additional market outlet,” says Bev Jones, FP’s director of western business and brand.

Given the geography of the cover crop market, Jones thinks the eastern Prairies will benefit more, but everyone can have a slice of the pie.

“Initially we see Manitoba as being a bigger target for it than Alberta, but there might be people in Alberta with relationships [in the U.S.] that have the freight arranged,” she says.

Jones doesn’t anticipate hybrid rye will become the next hybrid canola and dominate acres, but she does believe a slow, steady rise is coming, and this program may play a part.