It is grievous common knowledge that the vast majority of independent Canadian farm producers earn below average income or they have no income at all after paying farm expenses.
It is equally disconcerting that despite scientific and technological advances in agriculture, the majority of independent Canadian farm producers have not benefitted in terms of sustainable development.
According to George Brinkman, retired professor of agricultural economics from the University of Guelph, Canadian farm debt levels are four times that of our American neighbours. Independent Canadian farm producers are financing their way to produce food, maintain a way of life and retain significant, valuable land holdings.
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Does anyone believe that high Canadian farm debt levels are related to the fact that independent Canadian farm producers do not receive farm income support dollars like their American neighbours and friends? Does anyone believe that high Canadian farm debt levels are related to inordinate dependency and reliance upon certain arbitrary farm inputs?
Based on 2008 statistics, American farm producers sustained great economic losses, despite farm income support payments. Based on the assumption that Canadian and American farm producers employ basically the same farm business practices on average, is it safe to say that the majority of farm business dollars are going into certain arbitrary farm inputs?
According to Statistics Canada, the total value of farm capital in 2008 was $283,673,252,000. Farm business is big business in Canada, so why are the majority of independent Canadian farm producers still earning below average income or are still in the red at the end of the business day?
Independent Canadian farm producers enjoyed a profitable, viable way of life in the good old days of the 1970s. What changed?
Canadians were fed the lie that our system and supports were bad for business and bad for government in Canada. Historic infrastructure systems and supports were removed.
Producers gave up on traditional farming methods and practices. The rural landscape and culture has never been the same. Devastating losses of Canadian farm families over recent decades speak for themselves.
A $1 billion farm economy may exist in Canada, but the fact remains that independent Canadian farm producers are financing food production. This fact alone should give every person cause for concern.
Interest volatility is a major risk factor in everyone’s financial world. A spike in interest rates could force many farm producers out of production. Canadian producers have families. Canadian producers feed families. Canadian producers feed you and your family.
I do not see an invisible hand making necessary market corrections in the midst of the current laissez faire national farm economic strategy coming out of Ottawa. What I do see is economies of scope and scale, borders and currency, and taxpayers and cash registers.
The rules of supply and demand still apply. No one wants to see a monopoly on food production.
Consumers can regulate the moral farm economy with their food choices and wallets to a degree, but they rely upon producers, food corporations and regulators to make wise choices. Producers need more than fair prices for their products at the end of the business day. They need moral profits so they can put in next year’s crop.
We reap what we sow.
We all stand to benefit from good governance and best business practices in Canada. Let it begin on both sides of the farm gate.
It is high time for a few good men to take the lead in Ottawa and agriculture in Canada.
A national farm economic policy and support plan would be good for business and good for government in Canada, if it pertains to mandatory, environmentally friendly farm inputs.
This is one layperson’s solution for sustainable development in agriculture in Canada, the country we all enjoy and call home.
