That’s slightly higher than the United States but less than the average agricultural subsidies of 13.2 per cent in the OECD, a group with 38 member countries.

Why it Matters: Government support for producers can distort global markets and create an unlevel playing field.

“Risk-management tools constitute the main part of budgetary support to (Canadian) producers,” says the OECD report on agricultural policy, which was published at the end of October.

“These include income stabilization, subsidised savings and crop insurance programes.”

The OECD report includes detailed information on subsidies for farmers in 26 countries and the European Union from 2022-24. The data shows a wide range of supports for producers and consumers, which the OECD calls producer support estimates:

• Canada – 8.2 per cent of gross farm receipts come from government programs and policies
• U.S. – 7.0 per cent
• Japan – 32 per cent
• Mexico – 11.9
• Europe – 16.4
• Australia – 2.7
• Norway – 47 per cent

Some farmers and certain countries might take issue with the OECD numbers, but the data comes from a standardized formula, said Al Mussell, an agricultural economist in Ontario.

“The OECD is a very credible organization with some excellent experts.”

In terms of U.S. dollars, Canadian farmers received an estimated $5.88 billion in annual support from 2022-24, the OECD said.

In comparison, annual producer support in the U.S. was about $39 billion.

Canada’s $5.88 billion would have been lower, but the amount of public money going to Canadian producers jumped from 2023 to 2024, increasing by about $900 million, say OECD estimates.

In the early 2020s, the federal government committed $1.5 billion to numerous programs to reduce greenhouse gas emissions from farming, which partially explains the increase.

Still, the share of farmer gross revenue that comes from government has dropped significantly in the last 40 years in Canada.

It’s gone from 30 to 35 per cent of farmers’ revenues in the 1980s to about 18 per cent in the early 2000s and 7.9 to 9.1 percent in recent years, the OECD said.

With the exception of a drought year such as 2021, government support has represented less than 10 per cent of farmer revenue since 2014.

“The farmer has to lose money, before they get money (from business risk management programs),” Mussell said.

“The fewer the losses, the less the payments.”

Looking beyond Canada, many countries take a different approach to farm subsidies, where they provide market price support.

The United Kingdom, for instance, provides market price support for beef and veal producers of 28.8 per cent of gross farm receipts through tariffs and tariff rate quotas.

Canada provides similar market price support for milk production, “amounting to 28 per cent of commodity gross farm receipts,” the OECD says.

Most countries play this game, where specific sectors of agriculture are protected from market forces, Mussell said.

“It’s one thing to keep in the back of your mind.… Just about every country has their sacred cow.”

Prices for most grains, oilseeds and specialty crops are down from recent years, some more than others. The most notable is canola which dropped precipitously after the announcement of Chinese tariffs on oil and meal.

American tariff threats have no doubt hurt prices as well, but how much this has contributed is anyone’s guess. It’s interesting to note that canola prices clawed their way back up again as the shock from the Chinese action subsided.

The 2024 crop is mostly sold. The bigger question becomes prices for the 2025 crop. Goodness knows what the world trading environment will look like in another five or six months. The storm clouds may not look as bad by then or maybe we’ll truly be in a battle for economic survival.

Farm leaders wouldn’t be doing their job if they weren’t voicing concerns and trying to raise the profile of potential agricultural issues with elected leaders and soon-to-be elected leaders. However, expecting governments to solve everyone’s problems is naïve.

As the election campaign drones on, the Liberals and Conservatives are both promising to reduce taxes, dramatically increase defense spending and spur a massive increase in new house building, all the while protecting Canadians from the fallout of American trade action.

Money grows on trees during election campaigns.

During the pandemic, the federal government indiscriminately shovelled money out the door. Support was certainly needed, but billions were wasted. Many individuals learned the lesson that it’s easier to collect government money than actually make your own way in life.

Support programs will again be needed if the worst trade war scenarios come to pass. Industries, including agriculture, are positioning themselves to be at or near the front of the line for government largess.

However, farming is a business. Outside of the supply managed sector, commodity prices go up and down. Costs always seem too high. Profits are not guaranteed.

While we like to feel hard done by, we have more government support programs than other businesses across the country. This is particularly true for the grain sector with crop insurance, AgriInvest, AgriStability and some interest free financing from the Advance Payments Program.

Why do farmland prices continue to increase year over year? Two main reasons – the expectation that land prices will keep rising and uncharacteristically good returns for grain farmers for most of the last 20 years.

For farmers already feeling a financial pinch and who are worried about having enough money and credit to seed a crop, high land payments and/or cash rental rates are typically a big part of the squeeze. In many ways, grain farming is a victim of its own success.

If the country ends up in a full-fledged trade war battling to keep the economy afloat, governments will only be able to provide a limited buffer. Government debt is an almost ignored issue, but paying for that debt is costing a tremendous amount of money that should be spent on important priorities.

It’s easy to wave a flag and stand up for Canada when you think the government can protect us all. Can we stand up for Canada when it involves financial sacrifice in our businesses and personal lives?

Kevin Hursh is an agricultural journalist, consultant and farmer. He can be reached by e-mail at kevin@hursh.ca.