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: 194

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

Canadian Oilseed Processors Association welcomes Steve Pratte as director of policy

The Canadian Oilseed Processors Association (COPA) is pleased to announce that Steve Pratte will join the organization as director of policy, effective September 2, 2026. “We are pleased to welcome Steve to COPA,” says Mark Walker, executive director of the Canadian Oilseed Processors Association. “Steve brings expertise in transportation policy and regulatory affairs, as well as significant experience in the Canadian grains sector. His work will strengthen COPA’s policy capacity and help advance the priorities of Canada’s oilseed processing industry.” Pratte brings almost 20 years of experience in transportation and biofuels policy across both the public and private sectors. He has held positions with a Class 1 railway, a national grain industry association, as well as the government of Manitoba. Pratte was also the 50th president of the Canadian Transportation Research Forum, serving in that role from 2021 to 2023. Most recently, he has worked as a consultant focusing on transporta

CWRC and CBRC join forces to transform wheat and barley breeding

The Canadian Wheat Research Coalition (CWRC) Canadian Barley Research Coalition (CBRC) have entered a formal, strategic partnership to transform the Canadian wheat and barley breeding system. “Our two organizations have a history of working together on behalf of western Canadian farmers, so this formal partnership was a natural fit,” says CWRC chair Jocelyn Velestuk, who farms near Broadview, SK. “Many farmers grow both wheat and barley, and the breeding systems for both crops face similar challenges that we can now address collaboratively.” This new agreement represents the CBRC’s official entrance into ongoing discussions between the CWRC and Agriculture and Agri-Food Canada (AAFC) that originated from the CWRC’s review of, and subsequent report on, the Canadian wheat breeding innovation system. The review was designed to identify and address potential risks and opportunities in the Canadian system, ensuring it continues to generate elite varieties for farmers across the country.

USDA Forecasts Beef and Wheat Lead Farm-Level Increases

Strong gains in cattle, beef, wheat, and vegetable prices are shaping the USDA Economic outlook, while recovering egg production and lower milk prices are helping ease pressure in some food sectors.

Meet the Mentors – Bringing Real-World Beef Industry Experience to Research

Research is most valuable when it addresses real-world challenges and can be translated into practical solutions. For researchers focused on beef-related topics, understanding the realities of the Canadian beef industry can help ensure their work is relevant to the people who will ultimately use it. The Beef Cattle Research Council (BCRC) Beef Researcher Mentorship Program helps build those connections by pairing early-career researchers with innovative cattle producers and industry professionals. Through conversations, farm tours and industry events, mentors share their knowledge, experience and networks, providing valuable insight about the realities and priorities of Canada’s beef industry. Together, the 2025-26 Beef Researcher Mentorship Program mentors bring a diverse range of experiences from across Canada’s beef industry, from cattle production and veterinary medicine to research, marketing, animal health and industry leadership. By sharing their on-the-ground perspectives, th

CN and CPKC report record grain movement in August

CPKC moved slightly more grain than CN last month

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service