You don’t control agricultural markets. But you can act to protect your margins.
Statistics Canada’s monthly report on farm product prices shows that slaughter hog prices increased across all provinces in March 2026. The report cites tighter domestic supply and strong slaughter hog exports to the United States as contributors to higher prices.
But when you read the full commentary accompanying the report—which covers grains, oilseeds, specialty crops, cattle, hogs, poultry, eggs and dairy products—you quickly realize that many factors extending far beyond local production considerations are influencing agricultural prices.
This wide range of seemingly distant factors affects our day-to-day decisions and can create a sense of powerlessness.
For example, growing interest in biofuels brings environmental considerations into the equation.
Rising fertilizer prices illustrate the impact of geopolitical developments, with 20% of the fertilizers used in Canada transiting through the Strait of Hormuz.
Growing conditions during the new crop season in key producing countries highlight how interconnected agricultural markets are with international production conditions.
In the case of slaughter hogs, exports to the United States, the main driver behind March’s price increase, underscore the sector’s dependence on foreign demand, particularly from the U.S. market.
The role of budget planification
This does not mean producers must simply absorb these risks. It means they need to use the tools available to better protect their margins. This is where budget planning becomes essential.
To counter these uncertainties and safeguard margins, a structured budget plan becomes critical. A budget plan is far more than a simple budget: it is a strategic process developed a year in advance and grounded in a long-term vision.
Having strong risk management and hedging tools in futures markets is useful, but the best outcomes depend on the quality of the budget plan supporting them. It is this plan that enables better positioning at multiple levels, including decisions regarding the timing and selection of futures market hedges.
