Act now to protect the future
News Release
FOR IMMEDIATE RELEASE
November 21, 2002
(OTTAWA) - Data released yesterday and today by the Government of Canada confirms the need for a comprehensive agricultural policy to ensure the future of the agri-food sector. Today Agriculture and Agri-Food Canada (AAFC) released its quarterly farm income forecast showing continuing decline in farm incomes. Meanwhile new numbers from the 2001 Census show the farm population is getting older, with fewer young farmers entering the industry.
"This speaks to the urgent need to develop a very strong, well-funded, long-term agricultural policy," said Bob Friesen, President of the Canadian Federation of Agriculture (CFA). "But even that is not going to be the answer alone. We have to have strong prices with good potential for profitability."
Farming today requires substantial up-front capital investment; the average is $800,000 and can be as high as $1.4 million for some sectors. However, returns on that investment are not guaranteed. The numbers clearly show the variability and inadequacy of farm income. Drought in the Prairie provinces, declining prices in the livestock sector, and continued high operating expenses led to a decline in total net farm income for Canada as a whole declining by 27 per cent between 2001 and 2002. Meanwhile input costs continue to skyrocket.
"A farmer gets on average six cents of every retail dollar. Because there is marginal profitability, farmers are also finding they have to live on either inventory or on depreciation," said Friesen. "How long are people going to stay on the farm in those conditions? What young people are going to decide to farm when that is the only future they can see?"
The agri-food industry is Canada’s third largest employer, accounts for eight per cent of Canada’s GDP, and last year generated a trade surplus of $7.4 billion on $26.6 billion worth of exports. “Farmers and ranchers are the first link in the food chain. The increasing age of producers is a concern for the agri-food industry, and the entire Canadian economy. An investment in agriculture is an investment in Canada,” stated Friesen.
The release of the AAFC and Census data is very timely. In early December the government will begin the last round of consultations on the Agricultural Policy Framework (APF), intended to put details on the framework. It is vital these consultations work to address the issues highlighted by the income forecast and the Census data.
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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.
Contact:
Kieran Green, CFA Communications Coordinator, (613) 236-3633, info@cfafca.ca
Bob Friesen, CFA President, (204) 724-0824 (cell)
Brigid Rivoire, CFA Executive Director, (613) 236-3633 / (613) 715-3113 (cell)
