Ontario Agriculture

The network for agriculture in Ontario, Canada

Farmer salaries up 35%! This Maclean's article should entice some young farmers into the industry..

Do you agree with these salary numbers? Could a new farmer earn as much as an established farmer? What do the earnings look like after you account for your land and equipment?

Would you advise someone to become a farmer as a career?

Nice gig that pays $$? Farmer.

by Erica Alini on Wednesday, May 23, 2012

Looking for a good gig that pays over 60K? Consider farming.

No, seriously. After a long period of stagnation, net farm incomes are rising. Net operating income for the average Canadian farm was over $65,000 in 2011, up a whopping 35 per cent from an average of roughly $42,000 between 2006 and 2010. Only in 1995, that figure was below $30,000:

Agriculture and Agri-Food Canada, based on Statistics Canada figures and projections

“The economics of agriculture are coming back,” says Jeff Grubb, a Regina-based lawyer with expertise in agricultural law. “In the 1980s and 90s farm families needed to have some source of off-farm income,” at least in the prairies, recalls Grubb, who is himself the owner of a 700-acre farm. That’s less and less the case today, though, he says–courtesy of steadily climbing commodity prices and ever-larger farms.

 

Growing demand for food from emerging markets has pushed the prices of crops like rice to unprecedented highs in recent years. Of course, the appetites of a rising middle class in places like China are no guaranteethat commodity prices will keep going up in a straight line, but there’s reason to be optimistic nonetheless. A trend toward farm consolidation and bigger farms, for one, is another factor that’s making for better operating margins, as farm operators exploit economies of scale, notes Grubb.

Not convinced yet? Perhaps you need an update on what “working the land” looks like these days. If you pictured yourself living among the wheat fields, with your days ruled by a well-worn routine and nothing but dial-up Internet to connect you to the outside world, think again. With the average farm size at 778 acres, running a farm nowadays is as much about management and financial planning as it is about tractors and fertilizers. And in many cases, living on the farms is no longer required, says Grubb. In the prairies, many farm operators now live in urban centres and commute to work, he adds.

Add to this that the sector is in dire need of fresh blood. According to the latest Census of Agriculture, nearly half of all Canadian farmers are 55 and older, notes Grubb, who says he increasingly finds himself urging clients to think about succession planning. Though the number of Canadians farms has been decreasing since 1941 and dropped 10 per cent over the last five years alone, the number of young people entering the sector has been dropping even faster–with the result that folks under 35 made up less than 8.2 per cent of farm operators last year. With youth unemployment in Canada hovering around 14 per cent–nearly twice the national average–that alone should be enough to get some youngsters interested.

http://www2.macleans.ca/2012/05/23/nice-gig-that-pays-farmer/#.T75J...

 

 

Views: 1013

Reply to This

Replies to This Discussion

As a 25 year old in the Agriculture sector, I would love to farm.  However, the up front costs to young farmers are overwhelming and impossible.  Farm incomes are rising, because small farms are being pushed out in favor of larger producers.  It takes money to make money.  So, no I am not enticed to become a career farmer and if someone advised me to become a farmer, I would explain how it would be finacially impossible.  Judging by the average annual income, my great great great grand children would be stuck with the burden of my debt.

I have a real problem in the way the article portrays the financial aspects of farm revenues/expenses. (conspicuously absent are capital purchases and the effects on cash flow.)

The eye-catching opening line states "Looking for a good gig that pays over 60K? Consider farming."

OK. Got my attention along with almost everyone else that glances over the article.  That line implies farmers have a good "gig" going that pays lavishly.

The article then jumps quickly to state "net farm incomes are rising."  

But the very next sentence states the net operating income jumped over 35% over a few short years.

The writer masterfully confuses "net farm income" and "net operating income" in a single paragraph leading people to believe there is no difference between the two.

Cash receipts -(minus) operating expenses = NET OPERATING INCOME + Income in kind - (minus) depreciation = Realized Net Income +/- VIC = TOTAL NET FARM INCOME.

The article, in my private opinion, appears to be very misleading..... either that... McLeans believe there are land fairies much in the same category as tooth fairies. ... and that would indeed get "some youngsters interested".

Well put Joann. I'd be curious to read some other farmers comment on their actual net farm income. I meet a lot of non farming folk who think farmers are well off, with all their recreational toys (4 wheelers, snowmobiles, etc). However, others would have us believe that the average farmers have had a negative income for years. So which is it?

I know we are just scraping by, making just enough to live off of; and by living, it is simple and frugal: no toys, no tropical vacations, eating what we grow, wearing second hand clothes, etc.... It's tough, especially given limited cash flow in the early spring, but I can say this, we are debt free. No debt at all!

How about everyone else? What is your reality?

Joann said:

I have a real problem in the way the article portrays the financial aspects of farm revenues/expenses. (conspicuously absent are capital purchases and the effects on cash flow.)

The eye-catching opening line states "Looking for a good gig that pays over 60K? Consider farming."

OK. Got my attention along with almost everyone else that glances over the article.  That line implies farmers have a good "gig" going that pays lavishly.

The article then jumps quickly to state "net farm incomes are rising."  

But the very next sentence states the net operating income jumped over 35% over a few short years.

The writer masterfully confuses "net farm income" and "net operating income" in a single paragraph leading people to believe there is no difference between the two.

Cash receipts -(minus) operating expenses = NET OPERATING INCOME + Income in kind - (minus) depreciation = Realized Net Income +/- VIC = TOTAL NET FARM INCOME.

The article, in my private opinion, appears to be very misleading..... either that... McLeans believe there are land fairies much in the same category as tooth fairies. ... and that would indeed get "some youngsters interested".

Hi Colin,

There are alot of specific business factors to consider when you ask a broad question like that.

I think most land owners would be pleased with the growth of their land equity the past few years...but it is not liquid until it is sold.

Grain prices have been above cost of production for most farmers that past few years unless they have a high overhead cost structure.

Many farmers are asset rich and often cash poor as they prefer to pay down debt ahead of throwing money around.

I agree with some of the Macleans article that farming has been more attractive the past 5-6 years than the previous era.

Every situation is different and not everyone has had success the past few years...it is still a tough profession with so much out of your control such as prices and weather.

Have a nice day,

RR

Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Governments Of Canada And Manitoba Celebrate Agriculture By Supporting Royal Manitoba Winter Fair

The governments of Canada and Manitoba are providing financial support to the Royal Manitoba Winter Fair in Brandon, one of Manitoba’s key cultural events, federal Agriculture and Agri-Food Minister Lawrence MacAulay and Manitoba Agriculture Minister Ron Kostyshyn announced here today. Through the Sustainable Canadian Agricultural Partnership, the governments of Canada and Manitoba are providing $20,000 to the Provincial Exhibition of Manitoba for a one-year sponsorship of the Royal Manitoba Winter Fair. The sponsorship supports agriculture as the backbone of the provincial economy as a leader in innovation, research and job creation. The Royal Manitoba Winter Fair in Brandon is organized by the Provincial Exhibition of Manitoba. It is one of Canada’s largest agricultural events, showcasing the Manitoba Cup, livestock shows and sales, more than 300 commercial and agricultural exhibits, the Royal Farm Yard and more. The Manitoba Cup Equestrian Event is Manitoba’s premier horse jumpin

Qualified Alberta Pulse Growers Eligible for 11.9% Tax Credit for Investing in Research

The Alberta Pulse Growers Commission has confirmed that 11.9% of eligible producers’ 2023 check-off payment is eligible for the Scientific Research & Experimental Development (SR&ED) tax credit for their investment in APG-funded research and development projects. Producers who have paid check-off this past year and have not asked for refunds are eligible claimants for this year’s credits. For more detailed information about the SR&ED Tax Credit, APG advises you to contact an accountant or the Canada Revenue Agency. For a history of SR&ED with Alberta Pulse Growers visit https://albertapulse.com/growing-pulses/sred-tax-credit/ . A summary of APG research investments in 2022-23 is available at https://albertapulse.com/research/. The federal SR&ED tax program is administered by the Canada Revenue Agency (CRA) and encourages businesses to invest in and perform research and development in Canada. The SR&ED Tax Credit application forms for individual producers and Canadian controlled pri

Saskatchewan Government Delivers for Agriculture

The Saskatchewan Government delivered for grain farmers in the 2024 – 25 budget. Allocating $570.6 billion towards a variety of programs that support the agriculture industry, grain farmers will have access to a variety of risk management programs, including Crop Insurance and AgriStability. “It is a great assurance to Saskatchewan grain farmers as we plan our 2024 growing season, knowing that these programs will backstop us,” said Daryl Fransoo, Chair. Grain farming is a key part of the provincial economy, exporting over $20 billion in agri-food products and harvesting over 31 million acres across the province. “The Saskatchewan Government understands the value that agriculture brings to our economy and hears the needs of grain farmers. Their stance on the carbon tax is a great step and one that the Wheat Growers supports,” closed Fransoo. About the Wheat Growers: Founded in 1970, the Wheat Growers Association is a voluntary farmer-run advocacy organization dedicated to developing

Do More Ag fills board seats

Five individuals have been selected to serve on the board of directors for the Do More Agriculture Foundation (Do More Ag). Board chair Lauren Martin said the combined expertise of the new board members will drive the Foundation’s strategic objectives forward and each new board member brings unique perspectives and innovative ideas to Do More Ag’s mission of promoting mental health awareness and support within the Canadian agriculture industry. The new board members include Calvin Sonntag, the executive chair of BrettYoung Seeds; fifth generation farmer Robert Hunter; Holstein Canada CEO Sartaj Sarkaria; beef producer Emma Cross; and Angela Geddes, the spouse of a beef farmer on the East Coast and owner of “Soul on Fire Coaching,” Martin said this is a significant step towards a future where all members of the agriculture community are encouraged, supported, and empowered to take care of their mental wellbeing. “We are exceptionally pleased to welcome Angela, Calvin, Emma, Robert,

Research underway to benefit sustainability of swine industry

The Western College of Veterinary Medicine at the University of Saskatchewan is working to develop an on-farm tool for pork production companies to make business decisions to meet animal welfare and sustainability goals. The Natural Sciences and Engineering Research Council of Canada (NSERC) in partnership with 14 industry partners and the university provided funding for the research program in swine welfare. The program is led by Dr. Yolane Seddon. Her team of four research scientists and technicians will study data gathered from interviews with producers who make management decisions, as well as herd vets in Canada and the United States. “The outcome of this work is that we aim to produce a tool that will support decision making on the farm that will influence animal welfare, but also with the knowledge of how it interacts with business, profitability and environmental emissions and therefore, overall business sustainability goals that could influence market access,” Seddon explain

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service