It’s a struggle. Transportation costs, spiralling debt and increased competition from other regions are hitting hard at the birthplace of Canadian agriculture.
Farm numbers are dwindling, few young people let themselves even dream about staying on the farm, and everywhere you go, there’s continuous speculation about what lies ahead.
A 2008 GPI Atlantic report says that farmers in Nova Scotia and Prince Edward Island are sinking deeper into debt with their incomes no longer covering expenses. It talks about the number of people employed on farms dropping by 36 per cent in both provinces since 2001.
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The title of the 338-page report —
Towards a Healthy Farm and Food System — seems to fly in the face of the stark realities that it describes. Only seven per cent of farmers in Nova Scotia and nine per cent in PEI are under 35, numbers which have plunged by more than half since the 1990s.
The GPI Atlantic report, which also examines the economic and social implications for rural communities if the decline continues, notes an increasing reliance on imported food, resulting in a declining share of the consumer food dollar for local farmers.
“From a Nova Scotia perspective, 50 per cent of farmers cannot or are having great difficulty in meeting the costs of production,” says Laurence Nason, CEO, Nova Scotia Federation of Agriculture. “The GPI report confirms what we have been saying to government for years. Farmers are carrying increasing debt loads and there is a need for some kind of stimulus for this industry.”
On farm after farm, the link between the industry outlook and the prospects for individual families is direct, and depressing.
“The hog industry in the entire Maritime Provinces today is smaller than it used to be in Nova Scotia alone,” says Gerald Vermeulen who began raising hogs 28 years ago and is chairman of Pork Nova Scotia.
“I know I don’t want any of my children to take over the farm,” Vermuelen says. “I have too much debt to farm a different product. I am trying to survive for another 10 to 15 years to pay off the debt. Then when the debt is paid off I can walk away, but I still won’t have any money to retire on.”
Nova Scotia’s agriculture is in financial difficulty due to high input costs, limited marketing options for many products, and transportation costs to get product to larger populated markets, says Brian Cameron, general manager of Dairy Farmers of Nova Scotia.
“The face of agriculture has changed and will change into the future,” says
Cameron, looking for hope for the industry. “I think the Maritimes will pull more closely together as producer numbers decrease.”
With trouble in almost every sector, Cameron says, farmers must work for the broadest possible solutions. His dairy farmers, for example, have few diversification options in Nova Scotia since the other livestock and crop commodities are having such a hard time.
Then, the tough times in other sectors depresses land values throughout the region, eroding asset values and equity.
Consolidation of the processing and retail sectors also makes “buy local” a tougher sell, as distributors want one-stop shopping, says Cameron.
“Dairy and poultry sectors are faring better due to supply ply management,” notes Cameron. “Other sectors could benefit from a more collective marketing approach.”
So, could supply management save those producers? That, says Cameron, hinges on whether they could get government support through legislation to enact their own supply management system. Even within supply management, however, there are challenges. Dairy farmers in Nova Scotia are grappling with finding ways to grow the domestic market and survive with high input costs and declining agri-business infrastructure.
“Dairy producers across the Maritimes derive 100 per cent of their milk revenue from the marketplace,” notes Cameron. “There are no government dollars flowing to dairy producers for the milk they produce. As a supply managed sector, dairy producers should be given equal opportunity to participate in risk management government programs for non-dairy products they produce, such as cull cows, calves, forages and crops.”
“We recognize that the status quo isn’t working,” says Wayne MacKinnon, spokesperson for the PEI Department of Agriculture, Fisheries and Aquaculture. “The current commodity model isn’t working. We have established a commission on the future of agriculture and agri-food on Prince Edward Island. The commission will look at a long-term vision for agriculture and agri-food and recommend a strategy.” MacKinnon also says PEI has held some discussions with Nova Scotia and New Brunswick toward a Buy Atlantic brand with a more regional marketing approach. The Atlantic Provinces Economic Council (APEC) report card on agriculture from September 2007 notes that the Atlantic region’s rate of technical change is of particular concern and it states that technical resources need to be more sharply focused to better apply new global knowledge and technologies to the unique conditions condioption affecting Atlantic farms. It says that delivering research and development is key to shaping the future of agriculture in the region. The APEC report cites lagging productivity gains and limited technological advances for the region.
“Farming isn’t a very lucrative option right now,” says Mike Nabuurs of the PEI Federation of Agriculture. “Returns are virtually non-existent. Farming is just no longer a plausible option for young people to consider getting into.”
“How many young people are going to look at a business where you will need to invest millions of dollars and can’t make
