OTTAWA – Anyone considering farming as a career in Canada would be wise to keep in mind this piece of advice: Don’t quit your day job.
Statistics compiled by Agriculture Canada provide stark evidence of a trend many farmers have been complaining about for years – the average Canadian farm business is kept afloat by off-farm income.
With most farm families, off-farm income sources provide approximately $2 for every dollar earned on the farm.
“Off-farm income is the most important income source for farm families,” according to a statistical data book compiled by Agriculture Canada and published in August.
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It is an issue that is likely to capture some political attention on Parliament Hill this winter, says the chair of the Commons agriculture committee.
“It is scandalous how little money farmers receive for their investment and labor,” Southern Ontario MP Bob Speller.
The committee, which begins a series of hearings on the future of agriculture later this month when Parliament reconvenes, will be asking that very question, said Speller.
“Obviously, farmers deserve more of the food dollar and consumers should be aware of that.”
However, Speller also noted that with free trade deals and the emphasis on “competitiveness,” the trend is toward lower market prices rather than higher.
Government statistics indicate that in 1991, the latest year for which income data have been analyzed, the average pre-depreciation farm family income on unincorporated farms was $49,394.
On average, $33,313 of that came from off-farm sources and $16,081 came from farm operations, including government support payments.
The larger the income, the more off-farm income was involved.
For families with incomes of more than $100,000, the average was $149,603. More than $100,000 of that was off-farm.
Statistics indicate that the largest group of families were those with incomes between $50,000 and $100,000.
For the group, the average income was $68,909 and $44,230 of that came from off-farm sources.
