High interest rates, skyrocketing input costs, labour shortages, climate change … the exact mix varies from country to country but farmers around the world are facing threats to their ability to grow more food, which means farmers everywhere are looking for opportunities to improve production, preserve profits and protect the environment.
What does it all mean for Canadian farmers? Well, it might mean they should consider jumping on board with these fast-growing trends.
1 Going collaborative:
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Collaborating through partnerships, joint ventures and even co-ops may seem like an idea that ran out of steam a long time ago on a lot of Canadian farms. Now, it’s making a comeback. Research shows that collaboratives have greater negotiating power, better access to farm technology, and more efficient operations.
They’re also able to access more funding.
Dalhousie’s Jolene MacEachern believes high interest rates and input costs have led to renewed interest in collaboration with arrangements ranging from farm amalgamation and equipment shares to hiring out more custom work.
“We have to think about … doing things a little differently due to the fact that the price per unit just keeps increasing and the price we receive isn’t keeping pace,” MacEachern says.
Collaborative farming works best when farmers have complementary skills, similar management styles, and a shared need for infrastructure or equipment. It can be a challenge on any farm, and may prove especially tough for producers under supply management who face additional red tape.
“You have to be pretty progressive in order to make that work when you’re used to generations of being your own boss,” says MacEachern. “But I think it’s possible.”
2 Prioritizing climate adaptation:
Record drought, flooding, wildfires and warmer temperatures have forced farmers to adapt their practices, making climate adaptation a top trend in agriculture.
“We have to keep our farms resilient,” the RBC’s Mohamad Yaghi says.
Earlier this year, Canada published a National Adaptation Strategy that established goals to adapt to a changing climate, noting that agriculture was one of the industries facing the greatest risks from climate change.
Planting genetically modified (GM) crops has already been shown to generate higher yields and require less pesticide; GM may also reduce tillage, sequestering more greenhouse gases in the soil and boosting carbon sequestration.
The need for crops that can withstand the changing climate led Canada to issue new 2023 guidelines that relaxed the rules around gene-edited seeds. Researchers in several Canadian universities have received grants to study more climate-resistant seed varieties. For example, the University of Calgary received $6 million to use genomic technologies to produce hardier pea varieties; researchers at Dalhousie University are testing Kernza, a variety of wheatgrass that grows deep roots, making it more resilient to climate change.
“At the moment, investors and stakeholders across the supply chain are demanding more science-based evidence about the different practices … and how they are performing (on farms) across the country,” says Yaghi. “This isn’t a threat, it’s an opportunity … a moment to get ahead and define what are the opportunities for the industry.”
3 Recruiting the next generation:
It’s no secret Canadian farmers are getting older with the latest data showing 40 per cent of farmers are set to retire by 2033, and it’s already being pointed to as “one of the biggest labour and leadership transitions” in Canadian history.
The next generation of farmers needs high-tech skills in data analytics, automation and climate smart practices, which requires building a new pipeline of farmers, according to a 2023 RBC report. Canadian colleges and universities are working hard to fill the gap.
“The use of technology and data management and all these cool things that will enable farms to be less labour-intensive may inspire a different generation to come back and be part of (the industry),” MacEachern says. “A lot of work is being done to bring those who have traditionally not been part of the story, like our Indigenous communities … to ensure that there’s a pathway for them in agriculture.”
University Affairs magazine notes that full-time enrolment in agricultural programs at Canadian post-secondary institutions declined from 1999 to 2007 but rebounded, hitting an “all-time high” of 6,700 students in 2016. Now, RBC reports, “a fourth agricultural revolution is underway” as schools emphasize agriculture technology.
4 Transition to regenerative agriculture:
In some circles, regenerative agriculture is a buzz phrase. In others, it’s the future. McCain Foods, Maple Leaf Foods and McDonald’s Canada have each adopted regenerative agriculture practices on their land and so have a growing number of our farmers — especially smaller farmers.
Regenerative agriculture emphasizes practices that improve soil health and pull greenhouse gas emissions out of the atmosphere so they can be sequestered in the soil. In the process, farms become productive and profitable carbon sinks.
Some estimates say regenerative farming could see Canadian farmers sequester 78 gigatonnes of carbon dioxide equivalent by 2050 — an accomplishment that would shoot the nation beyond net zero. But Antonious Petro, executive director of Regeneration Canada, notes, “there are financial barriers, there are knowledge gaps and there is a whole network of support that needs to be in place … Farmers can’t go green if they’re in the red.”
A growing number of financial incentives could help. In addition to new waves of federal and provincial funding to support regenerative agriculture, private investments from companies with huge public exposure like McCain Foods and McDonald’s Canada are also promoting the transition.
The regenerative agriculture movement also needs a support network to facilitate knowledge transfer. Organizations like Regeneration Canada provide information and technical support to bolster the trend toward more sustainable agriculture.
“We need to raise the bar higher and higher to advance to more regenerative practices,” Petro says. “There are farmers who are doing their part and more who want to follow the course. The momentum is there.”
5 Build carbon markets:
In 2021, the Canadian government published new standards for carbon pollution pricing for 2023 to 2030 as part of a climate plan designed to reduce greenhouse gas emissions. The next step is turning a nascent carbon market into a robust industry, according to a new report from RBC.
The federal government established a national carbon emissions market in 2022, allowing participants, including farmers, to sell credits for carbon dioxide emissions. Registered participants receive one credit for each tonne of emissions reduced or removed from the environment.
Since then, Canada’s market for voluntary carbon offsets, which could top $4 billion by 2050, has experienced momentum with the CBC calling the Cboe Canada exchange the “most public venue” in North America for companies selling carbon offsets.
The RBC report estimates this growing trend could result in “tens of thousands of dollars in fresh revenue streams for some operators.”
6 Embracing technology:
Innovation in agriculture is nothing new. Farmers have innovated as long as there have been farmers, but we also have to recognize that next-generation technologies have expanded the scale and speed of farm equipment, allowing farms to be more productive and profitable than ever.
Here are three good reasons automation is now being called “the future of farming.” First, it covers more farms from start to finish, changing practically every job on the farm; second, it means more non-farm employees are getting hired for on-farm careers; and third, it is injecting serious cash (and expenses) into farm balance sheets.
In fact, full automation may boost Canada’s net crop incomes by $400 per acre a year, according to a report from McKinsey & Company.
The rising cost of inputs and shortage of farm labour are also driving demand for automation, says Jolene MacEachern, dairy farmer and director of strategy and strategic projects at Dalhousie University, who believes there is another advantage to adopting more tech tools on the farm.
“Thirty years ago, the likelihood of hiring (workers) who grew up on farms was higher,” says MacEachern. “Now, farmers are hiring people who have an interest in food and need to be taught the rest.”
However, technology may also change the shape of farming in Canada.
While automation has been shown to provide significant return on investment, including up to 80 per cent reduction in herbicide costs when farmers use precision sprayers, the upfront cost of the equipment is a significant barrier in adopting these trending technologies. This means the trending tools will take longer to adopt in smaller operations.
7 Advancing gene editing:
Concerns about climate change and greenhouse gas emissions have put a focus on innovations that can help livestock (and farmers) adapt. The genome-editing tool CRISPR has emerged as a popular option.
In 2022, the U.S. Food and Drug Administration gave the green light to gene-edited beef. CRISPR created a genetic trait to give cattle short, slick coats to allow them to better tolerate hot weather. More recent research includes a US$70 million initiative at the University of California to explore how CRISPR could alter the gut microbiome of cattle to produce less methane, cutting greenhouse gas emissions from cow belches via an oral medication.
Mohamad Yaghi, agriculture and climate policy lead at the RBC Climate Action Institute, believes that gene editing has enormous potential for adoption because it’s simple to use.
As Yaghi explains, “It doesn’t require a month of education or training; it can be added to their work stream, making it super accessible.”
– This article was originally published in the December 2023 issue of Country Guide.
