P.E.I. Young Farmers Association Presents:

1
P.E.I. Young Farmers Association Presents
Addressing the future of PEI Agriculture

• Prepared for the Provincial Standing Committee on
  Agriculture, Forestry and Environment.
• January 8th 2008

2
Identifying and providing solutions for the
agriculture crisis in Canada

• Introduction PEI Agriculture/ Canadian
  Agriculture
• Record low farm income/ operating expenses/ cash
  receipts
• Federal Trade Regulation
• Food Safety Regulations
• Declining number of farmers and aging farmers!
• Vision for the future of Agriculture in Canada.
  What do we stand for?
• Federal Programs not working! (CAIS, just one
  example)
• Income Stabilization Program
• Other Programs
• Labeling/ Legislation/ Food Safety/ Trade
  Regulations
• Local Marketing and Awareness Campaign.
• Buying LOCAL, SUPPORTING OUR OWN FARMERS!
• Looking to the FUTURE, NEED TO DO SOMETHING NOW,
  jeopardizing PEIs economy!

3
PEI Agriculture in a Snapshot

• In 2006, there were 517 fewer farms in PEI
  compared to 1996.
• PEIs total gross farm receipts were 388 million
  in 2005, while operating expenses reached 350
  million.
• Producer expenses increased 85 cents for every
  dollar of receipts in 2000 to 90 cents in 2005.
• Realized net farm income for PEI dramatically
  changed.
• 200253,510
• 200630,701.
• After realized net income such as depreciation
  costs, farm net income had been negative since
  2002.
• Operating expenses has steadily increased since
• 2002 310,000
• 2006 350,000
• Of PEIs 2330 operators in 2006, 17 were women,
  an increase of 15 from 2001 and nationally, 28
  of farm operators were women also.
• 43 of all farm operators in 2006 had an off-farm
  income.
• At the national level, 48 of farm operators
  reported had an off-farm income.
• Farm input price index and farm product price
  index (inflation over this period on prices
  farmers had to pay for the inputs they purchased
  rose more quickly than the inflation on the
  prices they received for the products sold -8
  for the inputs versus 2 for products sold.
• At the Canada level, farm input prices rose 8.6
  while farm product rose only 1.7.

4
Number of Farmers on PEI

• Since 1986 the size of farms have increased from
  96 hectares to 148 hectares in 06. While the
  numbers of farms on PEI was 2,833 and in 06
  nearly cut in half to 1,700.
• Farmers were forced to get bigger or get out!
• Average age of farmers on PEI is 52 years old.
• In 1991 total number of farmers 3130
• 630 Young Farmers on PEI (under 35 years old)
• In 2006 total number of farmers 2325
• In 2006 210 Young Farmers on PEI

5
Canadian Agriculture in a snap-shot

• In 2006, Canadas farm capital value increased 3
  to 210 billion, continuing the steady increase
  since 1988.
• Land and building account for 80 of farm
  capital.
• A lot of money to be transferred in the next 10
  years.
• Between 2000-2005 fertilizer and fuel prices were
  up 35.
• Net Farm Income
• Farmers seen their realized net income fall again
  in 2007. Rising interest, wage and fuel costs,
  together with falling hog receipts and program
  payments are huge contributors.
• This drove up operating expenses 4 in 2007
  alone!
• Interest rates rose 17
• Labor Costs rose 3
• Fuel costs rose 6
• Between 3rd quarter 2006 and 2007 hog production
  decreased -4.1 while milk and cream increased
  11.5 and poultry 15.9 in Canada.
• Obliviously supply managed sectors are benefiting
  (Dairy and Poultry). They have an amazing
  marketing campaign that invest in their
  industries.
• Farm Debt in Canada increasing steadily!
• 2006, farm debt reached 53 billion, an increase
  of 14 since 2001, continuing the steady increase
  since 1993.
• For the first time since 1986, mortgaged debt is
  higher than non-mortgaged debt, both around 26
  billion
• Rose 4.5 in the 3rd quarter of 2007 from the
  3rd quarter of 2006 alone.

6
Number of Farmers in Canada

• In 1991 there were 78,000 young farmers in
  Canada.
• In 2006 there were 30,000 young farmers in
  Canada.
• Total number of farmers in 1991, 390,000.
• Total number of farmers in 2006, 327,000.
• Average age
• In 199147 years old
• In 199648 years old
• In 200149 years old
• In 200652 years old

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Vision for Canadian Agriculture

• Invest in a future rather than an exist strategy.
• Farmers are not created over night. Take into
  account that agriculture is a process and
  investment needs to be taken seriously for Canada
  and more importantly PEI for us to participate on
  the world stage.
• Educational awareness to inform the public what
  really happens in the agricultural industry.
  Needs to be done on a federal level.
• Establish a less diverse process in the public
  service. Too much money tied up in bureaucratic
  process.
• If we are going to have food safety requirements
  for food in Canada, other countries must be
  required to do the same.
• Labeling legislation in Canada needs to be
  changed 100 Canadian.
• Canada must take a stand and represent Canadian
  Agriculture Now!

8
Federal Programs

• Cost share with the provinces should be 80/20.
• All the money spent to fix CAIS should have be
  injected to agriculture industry.
• Money is not spent in the right places!
• LABELING and FOOD SAFTETY REQUIREMETNS OUT OF
  DATE! CHANGE POLICY!
• Programs are not meeting the needs of farmers.
  It is important to develop programs that adapt to
  the changing sectors in agriculture.
• Direct payments to farmers declined 8 in the
  last year.
• Payments of 80 million in 2006 were
  significantly less than the 890 million made in
  2005 (phasing out of NISA was the main
  contributor)
• Crop insurance payments declined 27, mainly due
  that BSE programs were winding down.

9
Local Marketing Campaign

• Our products should be on the shelves in grocery
  stores.
• Consumers should be allowed to choose which
  products they wish to buy. If they knew where
  their beef and pork products came from, they
  would be surprised to find out food safety
  requirements which are present in Canada are not
  taken in other countries, ie some chemicals have
  been band in Canada for 10 years and food
  imported into Canada from other countries are
  still using those same chemicals.
• Consumer Awareness
• Marketing campaign at educating the public and
  school-aged children about the importance of
  where their food comes from.
• Convince the consumer to buy local.
• Help us put more back in the farmers pocket by
  limiting the amount of imported food that large
  grocery stores can have.
• Local PEI Food Depo Establishment
• Launch a website for consumers to buy local,
  start distribution channel.
• Trend of todays society is convenience!

10
What is needed?

• Unified Vision for Canadian Agriculture
• Investment
• Further Investment in Future Farmer Program
• What do Young Farmers face on a daily basis?
• High debt.too much money
• No profit.. Cannot pay back loans and really who
  wants to work for nothing and less than free!
• Consumer Awareness
• An Income Stabilization Program that WORKS!
• Definition for disaster in agriculture to receive
  payments.
• Money would not be needed if it was going back to
  the farm gate. MAKE TRADING FAIR!

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Conclusion

• Help PEI Farmers get a price for our product by
  changing agricultural policy on a national and
  provincial level.
• CHANGE AGRICULTURE POLICY SO WE CAN COMPETE ON
  THE WORLD-STAGE! (policy is outdated 30 years).
  No wonder countries like China and Brazil and US
  are more agriculturally competitive, there
  governments invest in them!
• We just want to get paid!
• Development of new provincial and federal income
  stabilization programs.
• Recognize the fact that this is a federal
  government problem and Canadian should be
  concerned where and whom is going to produce
  their food for further generations.
• National Food Campaign. Make headline news and
  stop worrying what Brittany Spears is doing.
• Must more money into the Future Farmer Program
  and increase diversity within the industry.
• Increase Farm Revenues by limiting the amount of
  imports or implementing tariffs on those that do!
• IT IS JUST NOT FAIR! FARMERS NEED TO BE EMPOWERED
  AND NEED YOUR HELP TO CHANGE POLICY TO ADAPT TO
  THE FUTURE OF AGRICULTURE ON PEI.

12
What do people think of Farmers on PEI?

• Editorials from the Guardian Website in the last
  month
• Its really hard to find local produce. Ive
  been to stores in August and September where all
  the potatoes came from California. There is room
  for enterprising grocers to BUY LOCAL AND
  ADVERTISE IT. If people really care about
  preserving PEI agriculture, they will patronize
  these establishments.
• The big picture here is that the whole Island
  economy will be affected. Its already starting
  too happened and will only get worse. Farm is on
  of three major industries that feeds our economy.
  The spin-off is huge. The public may like to
  see their tax-dollars going to the pork and beef
  industry but would you rather see higher
  unemployment, higher taxes, businesses such as
  farming equipment supplies closing. When such a
  large industry starts to change, there is less
  money being spent on food, clothing, larger
  ticket items such as car, trucks and housing.
  This will affect every other business.
• Our government leaders, both provincially and
  federally need to better manage this crisis. The
  leaders of Atlantic Canada also need to work on
  this collectively. Financial strain on the
  Islands economy will also have an impact on Nova
  Scotia and New Brunswick.

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Editorials from the Guardian Website Cont

• Our Island farmers are going out of business
  because they cannot compete with other in the
  market. Well that is free enterprise. If you
  cant stand the heat get out of the kitchen. It
  is unfortunate but that is free enterprise. I
  dont see the govt giving money to every
  business that is in financial trouble. Why
  should we give agriculture more money than they
  have already received? There will always be food
  on the table.to think would be unlogical.
• I am really disgusted on how many of you are so
  naïve and ignorant when it comes to the
  agriculture industry
• Free enterprise!! One of the main reasons the
  prices to farmers are so low in Canada is foreign
  countries are subsidizing their farmers,
  including the US. If Canada does not fight back
  soon all your pork will come from wither the U.S.
  and the Mega Pork corporations. Most of your
  beef and pork comes from Argentina, Uruguay, or
  Paraguay. Based on viewing the comments above,
  there seems to be a lot of informed people. If
  we let this so-called free enterprise rile the
  market here in Canada, we will be eating more
  crap from China, Mexico, and where ever where
  there is little or no food safety food
  regulations.
• I really feel bad for our younger generation that
  want to farm, enjoy growing quality food for
  everybody, picking up where the family farm took
  off. ..ask a younger farmer why they farm and
  it will surprise you.if you can find any?

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Questions

• Thank-you for your time!