Statistics Canada says that farm households are doing much better than they did a generation or two ago. That’s something to celebrate.
Median farm income was almost half of the income of the rest of the population in the early 1970s. As of 2016, it was 20 percent above the median income of the rest of the population.
Statistics Canada numbers on farms are notoriously fuzzy because they take in a broader sample than most of the rest of us in the industry consider when looking at farmers.
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But the national numbers are good for identifying trends, and this marks a definite change.
Yes, better farm management, more stable markets due to domestic programs (like ethanol) and growing exports help. So does technology that allows more agriculture production per person. More valuable farm assets mean more borrowing ability and more chances to grow businesses.
But much of the increase has to come from non-farm income. That means rural Canadians are earning more. That’s not something we hear every day, but it doesn’t surprise me, especially in rural southern Ontario.
Many previously empty industrial buildings now have tenants. Sometimes they have multiple tenants using chopped-up space. They usually employ fewer people than the car parts and bathroom fixture plants did in their heyday, but those buildings are seeing use and generating spinoffs.
The demand for workers in trades in rural areas is also a factor because farmers and others in their households can make a decent living with a bit of work ethic, some technical ability and some time spent apprenticing. The school and health-care systems also provide well-paying jobs in rural areas.
It depends on whether you ask Statistics Canada or Agriculture Canada, but farm household income runs from $80,000 to close to $140,000.
No one should be ashamed of that. In fact, we should be shouting from the rooftops that farms are a great place to live, raise a family and there’s the potential to make a nice living doing so. It’s not going to make you rich, but you can be comfortable. As well, with some expenses lower in rural areas, especially housing, there’s extra value to be gained.
The trend could also explain why more young people are being attracted back to the farm. They see that they can make a living and their parents can have a discussion about growth and potential.
That wasn’t the case for those in the 1970s and 1980s. There was little encouragement that a farm life made sense or was even desirable.
There’s a greater need than ever for policy that supports agriculture growth, but not necessarily income — and maybe as important is the need for rural policy and infrastructure.
Dairy Farmers of Canada’s recent policy conference was closed to media.
The policy conference was one of the most valuable events on the yearly dairy coverage calendar. It drew speakers with insight and producers interested in the issues and in leadership.
DFC has had a tough couple years, with multiple losses on trade, the withdrawal of much of its marketing funds by dairy farmers in Ontario and significant staff restructuring.
This isn’t the time to close the doors, when support from the public and other farmers and rank-and-file dairy farmers will be critical to the future.
John Greig is editor of Farmtario.
Kelsey Johnson’s Capital Letters column will return.
