The February principle field crop outlook from Agriculture Canada forecasts a six per cent decrease in national oat acreage this year, attributing this decline to a drop in U.S. oat futures and competitive prices from other crops.

But, when it comes to new crop prices, Prairie Oat Growers Association president Art Enns says markets aren't that bad.

"I'm seeing offers of $3.15 (per bushel) for new crop right now, they were out about a week ago," he says, "so I would say our price of oats — starting anway — is not much lower than it was last year about this time."

Enns says due to market access, Manitoba is seeing better prices than Saskatchewan or Alberta because of our proximity to millers in Minneapolis — which is a factor he thinks could partly help to bump up provincial oat acreage. The other factors working in favour of oats right now is demand and transportation, particularly for oats headed down south.

"We're seeing a very large increase in oats going into Mexico," Enns says, "that has happened this year, it's probably a five-year high for exports into Mexico, and we've taken away from some of the other countries out there, which has been a plus. So the demand is there for oats."

Enns says because southern Manitoba has shorter access to the U.S. and Mexico than other parts of the Prairies, this puts our producers at an advantage. He notes transportation into U.S. corridors has picked up this year, with a lot of available cars creating easier access to millers.