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Canada’s
farms are dwindling in number and almost half of those that remain cannot
cover their expenses, according to Statistics Canada. The number of farms declined
by 7% in the past five years, leaving 17,550 fewer farms and 19,140 fewer
farmers, according to a census agriculture report released in May. The
drop was most pronounced in Newfoundland and Labrador, which lost 13% of
its farms, and Saskatchewan,
where the numbers fell by 12%. However, the total farm area in the
country remained virtually unchanged at 67.6 million hectares. The report
attributes that consistency to the “resilience” of farmers finding new
ways to work, and to the growth of larger farms.
The number of farms with more than $250,000 in gross
income increased by nearly 14% over the past half-decade and
“million-dollar farms” grew by 33%. Small farms are still the most common
in Canada by
far, but their numbers are shrinking and they have a much harder time
making ends meet.
The past five years have been “the worst for farm
incomes in Canadian history,” said Terry Pugh, executive director of the
National Farmers’ Union. The Stats Canada report acknowledges that
between mad cow disease,
difficult weather and shifting product demand, prices have been “somewhat
like a roller coaster.” However, the snapshot shows that gross farm
earnings are on the rise — along with expenses.
Canadian farm receipts (including earnings on products
sold and government program payments) totalled $42.2 billion in the most
recent census, up almost 9% over the previous figures. In the same time
period, farm expenses were $36.4 billion. Fertilizer and fuel prices
alone jumped 35% and pesticide costs rose by 19%.
This means Canadian farmers spend an average of 86¢
for every dollar they make, but that figure does not include depreciation
— something Terry Pugh said is a major cost and a significant
oversight. All told, 44% of Canada’s farms
were unable to cover their expenses in 2005 (financial figures for the
previous year were reported on the census), a fact the report attributes
to a large number of very small farms. About 71% of farms with receipts
of less than $25,000 were in the red — slightly less than during the
previous census — and 14% of the million-dollar operations also found
themselves in debt.
The census also shows more farmers are looking for
work off the farm and working longer hours. Nearly half (48%) now have
some employment off the farm, up from 45% in 2001.
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