Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFA advocates on behalf of farmers for increased marketplace power

By Laurent Pellerin, CFA President

One of the concerns faced by Canadian farmers is the continual battle against larger influences within the agri-food value chain. Whether it is dealing with a few very large producers of fertilizers, large multinational organizations purchasing grain, or large government agencies mandating constant changes to a farmer's operating environment, primary agriculture producers are constantly facing an erosion of their profit margins. The margins frequently fall well below the cost of production. The Canadian Federation of Agriculture (CFA) strives to advocate on behalf of farmers to the federal government to create and enable policies regain their marketplace power.

The creation of co-operatives has been an organizational structure that has served farmers for many years in many different production systems. In Canada, there are 1300 agricultural co-operatives, employing 36,000 people, in businesses as varied as input supply and farm insurance to processing and marketing of bio-fuels. These co-ops generate over $19 billion per year in revenue and channel some $1.6 billion producer re-investment in the industry and rural communities. One of the main difficulties in establishing a farmer cooperative is in locating the appropriate capital necessary to fund expansions and develop products and production systems for new markets and opportunities.

The CFA has been working with the Canadian Cooperatives Association on a Cooperative Investment Plan, where a significant portion of a farmer's contribution to a cooperative could be offset with a tax deduction, thereby providing an incentive for continued funding of the institution. This would be structured as a tax-incentive for investing capital into co-operatives, and has proven to be very successful in Quebec. For a relatively low cost to the government, this program would see hundreds of millions of dollars invested into agricultural co-operatives across Canada.

One way in which government has partnered with farmers is in the legislation and support of collective marketing boards. These boards, such as those legislated for dairy and poultry products, have proven to be very resilient to global market upheavals and have consistently returned solid revenue streams to farmers. While such a model is not ideal for every commodity, the supply managed collective marketing system is a vital tool for products that might otherwise be highly volatile. One needs only look at the difficulties experienced within the dairy industry south of the border to gain an understanding of the value of such a farmer empowerment system here.

One of the greatest influences on the operating environment of a farmer, next to the weather and commodity markets, is dealing with the regulatory burden. Agriculture and Agri-food Canada, Health Canada, the Canadian Food Inspection Agency, the Canadian Grain Commission, and numerous commodity-specific, regional, and provincial regulatory bodies affect the ability for a farmer to eke out a profit from his or her operation. By banding together in a powerful farm organization, an organization such as the CFA can provide a united voice for farmers and push back against intrusive government demands on farmers. To accomplish this, farmers much empower their local or commodity-specific farm organization to meet their needs and communicate them to the national audience. The CFA will argue the position of Canadian farmers directly to the responsible departments on your behalf. Individually, regulatory authorities can walk all over the small farmer, but when faced with a united group they are forced to listen.

The use of a membership-based volume-purchasing organzations, such as the Farmers of North America, have emerged in an attempt to help mitigate some of the input cost pressures facing farmers. This model has proven successful in the consumer sector, with the prominence of large membership-based club stores, and many farmers have indicated their appreciation for such an approach applied to input purchases. The uptake of the FNA service has been significant and growing every year, with members in every province except Newfoundland, and is a testament to farmers' desire to continually reduce their operating costs and become more efficient.

While FNA has proven effective for many farmers, it is limited in its ability to address consolidation within large fertilizer producers. The recent attempted merger of Agrium and CF Industries, and discussions of the possible sale of Potash Corp to large foreign interests, is yet another example of multinational consolidation designed to extract further gains from farmers. This challenge can be met with increased use of collective purchasing bodies, such as through cooperatives and companies like FNA, and also through the use of regulation. To that end, the CFA will continue to push the Competition Bureau of Canada investigate cartel-like behaviour within the fertilizer industry and demand the government act in the interests of farmers across the country.

Finally, the domestic consumer is one of Canadian agriculture's most important markets. While competing countries have invested heavily in promoting domestically-produced food and marketing it to their own consumers, Canada has played a much more relaxed position. Even though both the CFA and Agriculture and Agri-Food Canada have released surveys showing that Canadian consumers prefer Canadian products, turning this desire into increased sales of Canadian products has been difficult. One of the reasons is that there is no cohesive marketing campaign supported by a proper labelling system for items that a grown and processed in Canada. While the 'Product of Canada' labelling guidelines had zero requirements for domestically-grown ingredients, the government's changes to a 98% requirement were simply unworkable for virtually all of the agri-food industry. However, the CFA, along with other partners, has been pushing for a change to guidelines that would see a reduction to 85%, allowing many products grown and processed in Canada would be able to proudly carry the label. Additionally, if the government sponsored a domestic branding and marketing campaign, the CFA believes many new and exciting opportunities would emerge for Canadian farmers and agri-food companies.
About the Canadian Federation of Agriculture

Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations, national and inter-provincial commodity organizations, and cooperatives from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

Views: 123

Reply to This

Replies to This Discussion

the story is a bit long, what I like to say is
united we stand divided we fall.
a general problem in our agriculture community is the that we work to much on our our own and lack trust of others.
I do not believe in the collective wisdom of individual ignorance.
Thomas Carlyle


But Agriculture Canada and the Minister of Finance are banking on it. If farmers don't collectively try to research and learn their rights we are doomed to form policies that will negatively impact us all.
Increased marketplace power....is a good concept for producers.

It is easy to talk about but very difficult when it comes to global commodities.

There are some examples in Ontario - Dairy, Poultry Marketing Boards....

Joe

Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Ukraine and Russia Ceasefire's Long-Term Impact on Grain MarketsImpact

Russia and Ukraine have continued to dominate the global grain market, despite infrastructure damage from the war.

Canola Crush Falls in February

The Canadian canola crush declined in February, falling below 1 million tonnes for the first time in five months. A Statistics Canada crush report on Friday pegged the February canola crush at 882,610 tonnes, down 12.6% from January and the first sub-1-million tonne monthly crush since September. Last month’s crush also fell 1.6% below the same month last year. However, the cumulative 2024-25 crush (August-February) is still running 6.2% ahead of the previous year, totalling 6.81 million tonnes. That is 59% of Agriculture Canada’s full-year crush forecast of 11.5 million tonnes, potentially a new record high. Although western Canadian canola crush capacity has expanded in the past couple of years, the canola industry is now facing trade wars on two fronts. On March 20, China officially imposed 100% tariffs on imports of Canadian canola oil and canola meal. According to the Canola Council of Canada, total canola exports to China in 2024 were valued at almost $5 billion and include

MPP for Leamington Trevor Jones named new Ontario agriculture minister

Fresh off re-election in Chatham-Kent—Leamington, the riding’s Progressive Conservative MPP is now heading a cabinet portfolio in the provincial government. Trevor Jones was named minister of agriculture, food and agribusiness on Wednesday, replacing Elgin–Middlesex–London MPP Rob Flack, who moves to municipal affairs and housing. A news release from the office of Premier Doug Ford stated the cabinet is an experienced team that will “deliver on the government’s mandate to do whatever is necessary to protect Ontario in the face of tariffs from the United States,” while building a stronger, more resilient economy. “As Ontario faces one of the greatest challenges in our history, workers and families are counting on us to stand up for their jobs and well-being,” Ford said. “Our government will double down on our plan to build, train and reskill workers for better jobs and bigger paycheques, tear down internal trade barriers, retool companies for new customers in new markets, attract mo

Second avian flu case this month reported in Lambton County

Another confirmed case of H5N1 avian influenza in birds has been reported in Lambton County by Lambton Public Health. The new case isn’t connected to one reported March 14, the agency said in a release. The latest case was reported at a commercial poultry site, according to the Canadian Food Inspection Agency (CFIA) website. The earlier Lambton case was also at a commercial poultry site. Lambton Public Health said it is working with Ontario’s Health and Agriculture ministries and the federal food inspection agency to “contain, monitor, and respond to the situation.” Avian influenza is a viral disease that mostly affects domestic poultry and wildlife such as geese, ducks, and shore birds, the agency said. No human cases of the virus have been reported so far in Ontario or Lambton County, it said. Only individuals who have worked with affected birds are considered at risk and Lambton Public Health said it is following up with those individuals.

John Cranfield named dean of the Ontario Agricultural College

John Cranfield is the new dean of the Ontario Agricultural College at the University of Guelph, removing the “acting” part from his title earlier this month. He had been serving in an interim capacity since July 2023, taking on the role after the university named the previous dean, Dr. Rene Van Acker, as its interim vice-president (research). The five-year term that started March 1 is the latest in a longstanding relationship between Cranfield and the university, where he began as an undergraduate student. Cranfield told The Observer he had spent most of his adult life as part of the University of Guelph, starting as an undergraduate studying biology before transferring to agriculture in his third year. “It really set me on an amazing path, partly because I think I was a little older when I transferred into the program. So, I had some good habits, matured a bit,” said Cranfield. “I just felt incredibly well supported, and a lot of opportunity was created for me, especially as a ma

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service