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: 75

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

Collaboration builds stronger, flood-resilient Township of Langley

Farmers and families in the Township of Langley will be better prepared for flooding with work underway to improve pump capacity on flood plains and irrigation systems that will strengthen the area’s food security. “The reality of a changing climate means we could see more frequent and intense flooding in the Fraser Valley, and it is vital we work together to keep our communities safe and our food supply stable,” said Pam Alexis, Minister of Agriculture and Food. “This is why we’re supporting collaborative projects that will help keep food on the table, protect the livelihoods of farmers and ensure the health of local ecosystems in the face of future flooding.” The Township of Langley, in partnership with the Kwantlen First Nation and Rivershed Society of BC, is working on a multi-phase project that includes upgrading water infrastructure and adding pumping capacity to manage flooding in the area. These upgrades will improve water flow and storage, increasing the flood resiliency of

Deal to protect ranch from development means family can keep raising cattle there

An agreement to protect a sprawling ranch in southern Alberta from development is the largest of its kind in the country, the Nature Conservancy of Canada says, and will allow the family that owns it to continue raising cattle there. The 22,000-hectare McIntyre Ranch was founded south of Lethbridge, Alta., in 1894 by William McIntyre and it remained in his family until his son, Billy, died in 1947. A longtime family friend and employee, Ralph Thrall, bought the property after Billy’s death and the Thrall family continues to own and operate it today. “We’ve just maintained the legacy of sustainable ranching that the McIntyres began when they came up from Texas and saw the overgrazing that had occurred through the Midwest, and so they learned through others’ mistakes and left the grass rather than taking it all,” Ralph Thrall III said Sunday in a phone interview from Lethbridge. The agreement, formally announced Monday in recognition of Earth Day, is a partnership between the Thrall

B.C. to increase local milk production with $25-million factory investment

The British Columbia government is contributing up to $25 million toward the expansion of a milk production plant aimed at boosting the supply of locally sourced food. The province said the construction expansion to Vitalus Nutrition’s plant in Abbotsford, B.C., will begin this summer and will increase local milk production by 50 per cent, to 1.4 billion litres annually. The project will boost local production for dairy products such as butter, which is currently required to be shipped from Eastern Canada to fill local demand, the government said in a statement. Premier David Eby told a news conference announcing the project Tuesday that it will also create up to 100 more jobs at the site. Eby said the pandemic as well as recent climate disasters, including the atmospheric river that swamped southwestern British Columbia in November 2021, impacted supply chains, elevated grocery prices and showed a need to produce more food locally. “We understand that we still need to ensure that

No-Till Farmer & Farm Equipment Named Finalists for National Writing Awards

Lessiter Media’s No-Till Farmer and Farm Equipment editors were recognized by the American Society of Business Press Editors with regional awards in the association’s 2024 Azbee Awards of Excellence and have been announced as national finalists for the program as well.

Award-Winning Dealers Share Precision Revenue Growth Opportunities & More

A trio of representatives from Precision Farming Dealer’s Most Valuable Dealerships (MVD) shared their keys to success during the 2024 Precision Farming Dealer Summit in Indianapolis.

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service