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: 126

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

Manitoba Planting Advances; Remains Ahead of Average Pace

Manitoba producers made just minor seeding advances this past week, although overall progress remains ahead of last year and the five-year average.  The weekly provincial crop report pegged seeding at 8% complete as of Tuesday, up 5 points from a week earlier and ahead of 4% last year and 6% on average.   Almost half the spring wheat acres in the Central and Interlake regions have been seeded, the report said, with other regions progressing quickly. Seeding of oats and barley has begun in the Southwest, Central, Eastern, and Interlake regions.  Canola planting has started in the Central region. Sunflowers have also started to be seeded in the Central and Interlake regions. Field peas are being seeded in all regions, while soybean crops are being planted in the Central, Eastern, and Interlake regions.   Manitoba received variable amounts of precipitation over the past four days, ranging from 0 mm to 12.7 mm with most regions receiving less than 0.5 mm.  Southwest:  Good weather ov

Canadian Corn Stocks Hit Decade Low, Soybeans Heavier

Canadian corn stocks as of March 31 fell to a decade low, while soybean stockpiles hit the highest in five years.  Thursday’s Statistics Canada grain stocks report showed total national corn stocks at 7.197 million tonnes, down 13% from a year earlier and the lowest since March 31, 2015, at 6.289 million. In contrast, March 31 soybean stocks were pegged at 2.393 million tonnes, a year-over-year increase of nearly 11% and the heaviest since March 31, 2020.  StatsCan said corn stocks fell amid a more than 50% fall in imports to 1 million tonnes, combined with a doubling in exports to 1.4 million.  Soybean stocks were at least partially buoyed by a larger 2024 Canadian crop, up 8.4% on the year to 7.568 million tonnes.   National on-farm corn stocks as of March 31 decreased 8.5% compared with the same date in 2024, to 4.9 million tonnes, while commercial stocks fell 20.9% to 2.3 million.   On-farm soybean stocks rose 11.1% to 1.4 million tonnes, with commercial stocks up 10.6% to 988

Early Saskatchewan Planting Ahead of 5-, 10-Year Averages

Spring planting is off to quick start in Saskatchewan, with almost 20% of the 2025 crop in the ground already.  The first weekly crop report of the season on Thursday pegged provincewide planting at 18% complete as of Monday. That’s 8 points ahead of the five-year average and 6 points better than the 10-year average. Last year, planting was 12% done at this time.  “Despite multiple storms throughout the province in April, producers were able to get into their fields and make rapid progress over the last couple of weeks,” the report said.  Limited moisture fell throughout much of the province over the last week. The highest reported rainfall was in the Alida area at 16 millimetres (mm) followed by the Lafleche area at 12 mm.  Planting progress is the most advanced in the southwest region, where 43% of the crop was in as of Monday and the first seeded crops starting to emerge. The northwest and southeast regions are also making good progress, at 15% and 14% done, respectively. The we

Understanding Yardage Costs in Cow-Calf Operations

Have you ever wondered where your money goes during the winter-feeding period? Feed costs are easy to spot in a beef cattle operation, but what about the other expenses quietly chipping away at your bottom line? This is where yardage comes in—it is a crucial part of managing winter feeding costs in cow-calf operations.  What is Yardage? Yardage refers to the overhead and non-feed costs incurred while maintaining cattle during the winter-feeding period. These costs include day-to-day expenses such as labor, equipment and building maintenance, fuel, utilities, manure handling and other general expenses like farm taxes and accounting fees. They also include non-cash costs such as machinery and facility depreciation, which represent the graduate loss of value in assets over time. Why Does Yardage Matter to a Beef Producer? Yardage may not grab attention like feed costs, but it significantly impacts profitability. These costs, especially non-cash costs like depreciation, often remain unno

Mother’s Day Q&A with Anna McCutcheon

The hardest part about motherhood is balancing everything, Anna McCutcheon says

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service