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: 147

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

*Webinars* Strategies for Reducing Calf Losses: Veterinary Insights from Across Canada

Are calf losses cutting into your beef operation’s productivity and profitability? You are not alone! The BCRC is hosting two 90-minute webinars featuring veterinarians from across Canada who work directly with cow-calf operations like yours. A March 18 webinar will feature veterinarians who work with Eastern Canadian cow-calf operations, sharing insights on practical prevention strategies to implement before, during and after calving to increase calf survivability. During the March 25 webinar, Western Canadian veterinarians will outline regionally relevant approaches for reducing calf losses, highlighting essential pre-calving strategies and practical management techniques to use during calving to help ensure healthier outcomes for both cows and calves.   Both webinars will include an extended Q&A session, giving you plenty of time to ask questions. Each webinar will also be available for?one continuing education (CE) credit for veterinarians and registered veterinary technologists

China halts tariffs on some Canadian ag

Some Canadian ag products will have tariff-free access to China as of March 1

Farmers Face Harsh Truths While Refusing to Abandon Their Way of Life

A recent post on social media by a friend asked to add a line from a movie that fans of it would instantly recognize. One of my contributions was, “You can’t handle the truth.” While that line came in a courtroom scene from one of my favorite movies with Jack Nicholson yelling it at Tom Cruise, it actually got me thinking about farming. Many of us who grew up on a farm have seen both good and tough times. That is the truth. But what are we currently experiencing and can we handle these truths? American Farm Bureau recently said there was a 46% increase in farm bankruptcies in 2025. That’s pretty sobering. Those of us who grew up during the farm crisis in the 1980s, when more than 250,000 farmers filed for bankruptcy, never want to hear about someone losing a farm. For a few years I’ve personally been concerned about what’s happening in our farming communities. Interest rates have been plenty high; input costs don’t seem to come down when market prices do. Farmers have always been pr

As US agriculture flails, farmers see big corn acres as best bet to break even

U.S. farmers, though punished by slumping prices after last year’s monster corn harvest, are expected to cut back only slightly on their plantings of the grain in 2026 as they brace for a fourth straight year of narrow profit margins or even losses. Farmers expect corn, the most widely grown U.S. crop, to hew close to break-even levels this year, supported by strong usage. Some see soybeans as riskier, given rising competition from Brazil and a volatile U.S. trade relationship with top buyer China. “Right now, you absolutely cannot make money on beans,” said Tim Gregerson, who farms in eastern Nebraska. “You can probably break even on corn, but you are going to have to have an extraordinary yield, or a price increase,” Gregerson said. Most growers in America’s Midwest farm belt grow both crops, alternating what gets planted on each field from year to year to boost soil health. Many add wheat, sorghum, cotton or other crops to their rotations. But among farmers who have some flexible

This is Agriculture: Producer, advocate, industry leader

Jill Verwey lives and breathes agriculture. Her roots growing up on a mixed grain and cattle operation in rural Manitoba lend themselves well to her current roles – the office manager for Verwey Farms Ltd., president of Keystone Agricultural Producers (KAP), and first vice president of the Canadian Federation of Agriculture (CFA). Jill’s pride in Canadian agriculture is unmistakable. Learn more about her career and advocacy journey below. Describe your job or product in one sentence. My role includes managing the day-to-day administration and financial operations of our family farm, overseeing food and animal safety and human resources, and representing agricultural producers provincially and nationally through leadership roles with KAP, CFA, and various boards and advisory groups. Where did you grow up? Was it an agriculture or urban environment? I grew up in rural Manitoba on a mixed grain and cattle operation. I have been married for 32 years, and my husband and I are involved in

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service