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: 111

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

How Farmers Can Help Keep Wheat Innovation Alive: Listen to Our CrossRoads Panel Discussion

The funding model for plant breeding in Canada is at a crossroads. The impending withdrawal of Agriculture and Agri-Food Canada (AAFC) from commercializing field-ready cultivars has sparked a conversation about how to fill the resulting gap without losing decades of investment in infrastructure and expertise. That was the premise of a panel discussion held today at the CrossRoads Crop Conference in Edmonton and facilitated by Alberta Seed Guide editor Marc Zienkiewicz. Panelists were Todd Hyra, western business manager for SeCan; Stuart Smyth, agricultural economist at the University of Saskatchewan; Canadian Wheat Research Coalition (CWRC) chair and farmer Dean Hubbard; and SeedNet science advisor and retired AAFC wheat breeder Rob Graf. Key points included AAFC’s shift towards upstream research, the need for collaboration with universities and private sectors, and the importance of maintaining a robust innovation pipeline. Metrics showed that 75% of wheat varieties come from AAFC,

U.S. tariffs on Canadian canola industry will have widespread, devastating impacts

Today, U.S. President Donald Trump announced that tariffs of 25 per cent will be applied to imports of a broad range of Canadian goods, including canola seed, oil and meal, effective February 4, 2025. “The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.” The U.S. is Canada’s number one market for canola exports and also a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion, including almost 3 million metric tonnes (MMT) of canola oil valued at $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion. Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country. “The damaging blo

Canadian Centre for Agricultural Wellbeing Launches the National Farmer Crisis Line

The Canadian Centre for Agricultural Wellbeing (CCAW) is proud to announce the launch of the National Farmer Wellness Network (NFWN) Crisis Line, 1-866-FARMS01 (1-866-327-6701), a transformative initiative designed to address the unique mental health challenges faced by Canada’s farmers, farm families, and agricultural workers. This program, made possible through an investment of $1.5 million over three years from Farm Credit Canada (FCC), provides tailored mental health support delivered by licensed professionals trained in the Canadian Agricultural Literacy Program (CALP). Farming is one of the most demanding and high-stress occupations. The financial pressures, isolation, and emotional demands of caring for livestock and crops can take a toll on mental health. The National Farmer Wellness Network Crisis Line bridges the gap by offering accessible, culturally informed, and confidential crisis services, ensuring farmers receive care tailored to their needs in moments of crisis. Quot

New mental health hotline for Cdn. ag industry

The Canadian Centre for Agricultural Wellbeing launched the National Farmer Wellness Network Crisis Line

Statement from Dairy Farmers of Canada regarding the announcement of tariffs on Canadian goods entering the United States

David Wiens, President of Dairy Farmers of Canada, issued the following statement regarding the announcement of tariffs on Canadian goods entering the United States:

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service