July 18th, 2022 – OTTAWA – On July 16-17, CFA held its Summer Board Meeting in Whitehorse, Yukon. This meeting brought together farm leaders from across the country to discuss the priority issues in Canadian agriculture, and to prepare for the Federal-Provincial-Territorial (FPT) Agriculture Ministers Roundtable.

During the meeting, farm leaders from across Canada held discussions on a range of critical policy issues affecting Canadian agriculture, including:

• Mental health and national farmer wellness,
• Challenges and opportunities in growing agriculture in the Yukon,
• The evolving role of the Senate and its role in addressing agricultural issues, and
• Canada’s agri-food innovation ecosystem.

The board also discussed the growing disconnect between the level of investment available to support Canadian farmers given the sector’s contributions to the Canadian economy and global food security, as well as its potential as an environmental solutions provider. To remain competitive, drive continued innovation, and attract investment into the agriculture sector, governments must ambitiously invest in Canadian agriculture at a rate far exceeding what is currently made available.

The board also discussed CFA’s role on the international stage through leadership at the World Farmers’ Organization (WFO), ongoing engagement with the World Trade Organization (WTO), and a strong presence at United Nations climate negotiations. Discussion focused on the need for continued focus on maintaining both a resilient domestic agricultural sector and a dynamic export-focused sector. Board members agreed on the importance of collaboration and maintaining a united front on key trade-related issues facing the Canadian agriculture sector, such as the upcoming CUSMA review.

On July 17^th, CFA hosted the Annual FPT Agriculture Ministers Roundtable, where Canada’s Agriculture Ministers met with farm leaders to discuss the pressing challenges confronting Canadian agriculture, and how data would serve as the foundation for future growth in the sector. Heading into the Roundtable, and to reinforce its commitment to data transparency, the CFA Board agreed to formally join Ag Data Transparent, as an industry member.

During this meeting, CFA highlighted how data and innovation are the key to unlocking further productivity in Canadian agriculture, through better economic outcomes, more responsive risk management, improved sustainability benchmarking and reporting as well as greater protection of animals and crops from diseases.

CFA made the following recommendations to Ministers to unlock the potential of data in agriculture:

• Develop a Pan-Canadian Data Strategy that supports public and private investment in research, programming, digital skills and outcome-based measurement and reporting.
• Expand investment in rural connectivity to ensure sufficient in-field network access to support the range of agtech opportunities emerging for farmers.
• Establish programming to support the adoption of connectivity solutions and make a legislative commitment to support farm equipment interoperability.
• Support capacity building for farm groups that are best positioned to protect farmers’ data, as well as investments in standards and new agricultural extension services to support ag tech adoption.

Following the Roundtable, the Ministers met on July 17^th for the Annual FPT Minister’s Meeting. The Ministers will issue a statement following that meeting in the coming days.

“The FPT Roundtable is a unique opportunity for the agriculture sector to meet with the Ministers and come together to iron out our collective vision for the sector,” said Keith Currie, CFA President.

“Data is critical as farmers continue to explore opportunities to increase efficiencies and measure their sustainability. Creating the conditions to optimize access to and use of on-farm data is needed to harness the sector’s astounding potential as a driver of environmental solutions, economic development opportunities, and a significant contributor to food security in Canada and abroad. At CFA we truly believe that Canadian agriculture is uniquely positioned to feed Canadians and the world while delivering climate solutions. Investing in data and data-driven solutions is the critical lynch-pin to achieving that goal.”

CFA Raises Concerns on Food Security, Socio-Economic Impacts and the Future of Canadian Farming

June 20, Ottawa, ON – The Canadian Federation of Agriculture (CFA), who represents 190,000 farm families across Canada has raised significant concerns over today’s decision by the Canadian federal government to ban open net pen salmon farms from BC coastal waters by 2029. The CFA believes this action will undermine the future of the critical Canadian agricultural industry and have ripple effects on food security and the economic prospects for farmers and communities across Canada’s West coast, as well as the rest of the country.

CFA finds this decision to be an alarming signal from the Canadian government to aquaculture and the agriculture sector.

The decision to remove open net pen salmon farms from BC coastal waters not only jeopardizes a critical food supply that provides 400 million meals of salmon each year, but it discourages any future investments in Canadian agriculture and farming, a strategic economic driver across the country. It also threatens the future of thousands of workers, approximately 500 of which are held by Indigenous people, will take away $1.2 billion in economic output, and hinder ongoing investments in improved environmental performance.

In addition to the loss of jobs and economic contributions in a period of challenging economic conditions for all Canadians, this sends a concerning signal for those looking to invest in Canadian agriculture, hurting not only the future prospects of Canada’s farmers but also the coastal communities and local First Nations who have established partnerships within the salmon farming sector.

Furthermore, the CFA is concerned that this decision undermines the federal government’s commitments to science-based decision-making and the support for rural coastal communities. Rather than present a responsible plan that advances incremental protections for wild salmon and supports the sector in their continuous adoption of innovative new protection measures, the plan put forward presents no viable pathway to maintain the sector’s food production and economic contributions.

“Salmon farming in BC is a key contributor to national food security, contributes significantly to the economy and provides a sustainable source of protein,” said Keith Currie, President of the Canadian Federation of Agriculture. “The limited license duration increases uncertainty, threatening the stability of the agricultural sector and the communities that depend on it.”
The Canadian Federation of Agriculture remains committed to collaborating with government, First Nations, and other stakeholders to secure a viable and prosperous future for the salmon farming and agricultural industries. The CFA urges the federal government to reconsider its approach and ensure decisions are grounded in robust scientific evidence, promoting long-term stability and growth for the sector.

“It is essential for the government to provide longer-term stability to enable the salmon farming sector to recover from recent declines and to continue contributing to Canada’s economic growth through innovation and sustainable practices,” added Currie.

CFA Frustrated as Capital Gains Legislation Undermines Family Farm Successions

June 11th, 2024, Ottawa – The Canadian Federation of Agriculture (CFA), who represent over 190,000 farm families across Canada, is disappointed with the Government of Canada’s decision to ignore calls to delay implementation of changes to the recently announced capital gains inclusion rate. By announcing the proposed tax changes in the Federal Budget on April 16th with an effective implementation date of June 25th, the Government of Canada is not providing Canadian farm businesses with enough runway to fully assess the potential implications of these changes for farm succession tax planning purposes and adjust accordingly.

While the Lifetime Capital Gains Exemption (LCGE) was increased to $1.25 million, the capital gains inclusion rate was also increased from one half to two thirds. CFA’s concern is that by increasing the capital gains inclusion rate we are neutralizing the increase to the LCGE threshold and jeopardizing the success of genuine intergenerational farm transfers and the financial health of the next generation of farms across Canada.

“By ramming these very significant tax changes through while farmers are in the field planting, we aren’t giving producers enough time to fully assess the implications for their families and their businesses,” said Keith Currie, CFA President.

With 40% of Canadian farm operators set to retire over the next decade, we need to ensure that the proposed personal income tax measures announced in Budget 2024 do not jeopardize the transfer of assets from one generation of farmer to another, but rather encourage the next generation of farmers to take up the calling, drive much needed rural economic activity and help the agriculture sector reach its growth potential.

CFA Disappointed with Lack of Agriculture in Federal Budget 2024

April 17th, Ottawa, ON – The Canadian Federation of Agriculture (CFA) was disappointed to see a lack of investment in Canadian agriculture in the 2024 budget. In light of sustained high-interest rates, a price on carbon for essential farming activities, for which farmers have no viable alternatives, and an increased risk of extreme weather events that are testing the limits and effectiveness of Canada’s suite of risk management programs, yesterday’s Federal Budget falls short for Canadian farmers.

“While we understand there are competing priorities for government funds, with erratic weather and high prices tremendously increasing the risk profile of Canadian agriculture, the government can ill-afford to ignore food production and Canadian farmers,” said Keith Currie, CFA President.

While the budget did have some positive investments in the sector, such as the re-commitment to launch of consultations on interoperability, carbon rebates for small businesses and previously announced funding for temporary improvements to the Advanced Payments Program, there was no mention of pivotal issues for the sector such as investments in environmental programming, chronic labour issues in food production or improvements to transportation and trade infrastructure.

At the same time, CFA was pleased to see the Government of Canada respond to CFA’s recommendation to increase to the Lifetime Capital Gains Exemption, a critical tool in supporting intergenerational farm transfers. However, the increase to the inclusion rate holds the potential to make these same transfers more challenging given the amount of capital required to remain competitive in modern agriculture. CFA will be assessing the full implications of these changes for intergenerational farm transfers in the coming days.

“If Canadian agriculture is to seize its full economic and climate potential, we cannot keep missing opportunities while our international competitors continue to invest in their agriculture industries,” Currie added.

CFA will be working closely with the Government of Canada to ensure that the priorities of farmers are recognized and that essential services such as Canadian agriculture are valued and protected.

CFA Pleased to see Interest-Free Portion of Advanced Payments Program Increased to Help Producer Cash-Flow

March 26th, Ottawa – The Canadian Federation of Agriculture (CFA) welcomed today’s announcement by Agriculture and Agri-Food Canada (AAFC) that the interest-free portion of the Advanced Payments Program (APP) would be increased to $250,000. The APP provides loans that have an interest-free portion to help farmers deal with cash-flow and increased production costs.

In 2022, the government increased the interest-free portion of APP loans to $250,000 to aid with pandemic recovery, and subsequently increased the threshold to $350,000 in 2023 to aid with escalating costs of crucial farm inputs such as fertilizer and fuel. Prior to this announcement, the APP was scheduled to return the interest-free portion to $100,000 in 2024.

CFA has been advocating strongly to retain the increased interest-free portion of the APP loans to reflect the significant inflationary pressures producers have experienced since the interest-free portion was first set at $100,000.

“Increasing the interest-free portion to $250,000 is welcome news to producers across Canada as these loans assist with cash-flow issues without any financial penalty. Farming is extremely time-sensitive and farmers must often make purchases for the next growing season before they have been paid for the last,” said CFA President, Keith Currie.

“Given the costs facing farmers are only expected to increase, we hope this change can set a new permanent baseline for interest-free advances and that the APP will continue to make adjustments that keep pace with rising farm expenses in the coming years.” Currie added.

CFA 2024 Annual General Meeting Recap

OTTAWA, Feb 29th, 2024 — This week’s annual meeting of the Canadian Federation of Agriculture (CFA) brought together farm and food leaders from across Canada under the theme Seizing Opportunities: Canada Growing Role on the World Stage.

“Canadian agriculture is consistently being impacted by events that are outside of our borders and global in nature. When problems and opportunities transcend borders, our actions must be developed with a global context in mind. Canadian agriculture has an incredibly important leadership role in global food security and the fight against climate change, and our AGM looks at how we can leverage that role for the benefit of Canada and the world,” said CFA President Keith Currie.

At the meeting, the CFA membership passed 53 resolutions that will outline much of its advocacy efforts in the coming year. This year’s resolutions cover a range of issues, including: conservation, climate change, labour, rural infrastructure, crop protection, international trade, risk management and much more.

The CFA had a range of high-profile speakers at the AGM, including:

• Lawrence MacAulay, Minister of Agriculture and Agri-Food
• Robert Bonnie, Under Secretary of Farm Production and Conservation, USDA
• John Barlow, Agriculture Critic for the Conservative Party of Canada
• Alistair MacGregor, Agriculture Critic for the NDP
• Yves Perron, Agriculture Critic for the Bloc Québécois
• John Weigelt, National Technology Officer, Microsoft
• Steve Verheul, Principal, GT and Company

At the onset of the AGM, there were four interactive workshops for delegates which explored key agricultural topics that included: Trade & Non-Tariff Barriers, Farm Financial Health, Data & Agriculture and Cybersecurity & AG. Each workshop was led and informed by key subject matter experts, focused on finding tangible and innovative solutions to the challenges of today.

The CFA AGM featured two panels. The first, entitled Supply Chain Dynamics in Canadian Agriculture, sponsored by Food, Health and Consumer Products of Canada, examined the complicated links of the global supply chain and how they are positively and negatively impacting Canadian agriculture. The keynote speaker was Deputy Minister of Transport, Mr. Arun Thangaraj.

The second panel of the AGM entitled Live with RealAg Radio hosted & moderated by Shaun Haney: Geopolitical Impacts on Canadian Agriculture, was sponsored by MNP. This panel examined how various geopolitical events in different regions are impacting the Canadian agriculture sector now, along with predictions of how they would evolve in the future.

During the AGM, CFA was proud to publicly endorse Agriculture in the Classroom Canada (AITC-C) as the leader in agriculture education in Canada. AITC-C is the national advocate for agricultural education, educating students and teachers about agriculture and the opportunities in the sector.

Recordings of the panels, political speakers as well as accompanying documentation, including passed resolutions, will be posted on the CFA website, www.cfa-fca.ca, in the coming days.

Food Freedom Day is February 9, 2024

The Canadian Federation of Agriculture (CFA) has calculated that by Friday, February 9th, 2024, a Canadian household of average income will have earned enough to pay for their entire year’s grocery bill.

Each year, CFA examines the proportion of income that Canadians spend on food to explore year-over-year expenditure changes and raise consumers’ understanding of Canada’s food system, from Farm-Gate-to-Plate.

Canadians spent 11.1% of their disposable income on food in 2023, which is slightly higher than the 11% of disposable income spent on food in 2022. As this change is very slight, Food Freedom Day lands on the same day as the previous year, February 9th

With food prices having seen multiple years of significant inflation, it’s important to provide further context on the Food Freedom Day metric, as the average Canadian disposable income is not representative of every Canadian’s experience or the effects that rising food prices have on them. While Canada’s food system continues to provide access to affordable food by global standards, inflation and other global events have negatively impacted food affordability and security greatly over the past few years.

Due to this, CFA continues to analyze Food Freedom Day with an eye to the differential impacts food prices have on Canadian households based on household income levels to show the percentage of disposable income that they spent on food last year. The graph below presents this information.

Source: Distributions of household economic accounts, income, consumption and saving, by characteristic, quarterly

As can be seen in the graph above, there is a large difference between how much disposable income households in the lowest income quintile (28%) and the highest income quintile (5%) spent on food and beverages throughout the year. Adding onto this, rising prices are affecting the lowest quintile disproportionately, with the lowest income quintile’s disposable income spending on food and non-alcoholic beverages rising quickly (23.1% in 2022 to 28% in 2023) while the disposable income spending as a percentage has lowered for the highest quintile (5.2% in 2022 to 5% in 2023).

As can be seen, lower-income Canadian households are facing a heavier burden when it comes to rising food costs, while increases in disposable income for the highest quintile may be outpacing food inflation.

CFA would like to note that while Canadians have seen food prices increase steadily throughout 2023 on the grocery shelves, farmers receive a small percentage of the price that consumers pay for food, and rising retail prices are not normally reflective of what is paid at the farm-gate. As an example, a recent report from the Agricultural Producer of Saskatchewan showed that if the sole driving factor behind the escalating prices of bread were the increasing costs associated with wheat, the inflation rate for 2022 would have registered at 2%. However, the actual observed inflation for 2022 amounted to a considerably higher 18%.

Farmers have seen their costs of production increase tremendously over the past several years, with many of their largest expenses, such as fertilizer and diesel, rising nearly 100% in that period.

With food costs continuing to rise, we know that many Canadians are struggling with food security and affordability. The Food Freedom Day metric shows that while Canada’s food system is a world leader in providing access to affordable food, there is a large difference in impact for Canadians of different income levels, with the lowest facing a huge, increasing burden when it comes to food costs,” said Keith Currie CFA President.

Food inflation is a complex issue, and studies have shown that it comes from far more than fluctuating commodity prices. At CFA, we are working with industry and government on a variety of initiatives to try to both understand and combat food inflation, in order to reverse this alarming trend.”