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COUNTRY LIFE IN BC • NOVEMBER 2016 Agri-food bankruptcies remain on low side by PETER MITHAM


VICTORIA – Strong revenues in the agri-food sector are putting more cash in the pockets of BC farmers, claims the province, and that’s translating into fewer bankruptcies among farm businesses.


Touting record agri-food sector revenues of $13 billion in 2015, BC agriculture minister Norm Letnick says the sector is economically strong.


While an August report from Farm Credit Canada warned that limited liquidity leaves BC farms vulnerable to shifts in markets, Letnick believes differently. The increase in net cash income that the agriculture sector saw in 2015 is a case in point. It rose 21.5% in 2015 to $440.1 million, up from $362.3 million in 2014.


“Our farmers, our ranchers, our producers, our fishers were able to pocket $440 million,” he said. “This record increase of over 20% since 2014 means more jobs, more revenue for BC farmers, ranchers and fishers, more profits and strengthens BC’s


food security.” Good news story


Statistics from the federal Office of the Superintendent of Bankruptcy bear out that good-news story.


Just three businesses in the general grouping of “agriculture, forestry, fishing and hunting” declared bankruptcy in 2015, down from 39 in 2008.


Sector bankruptcies have been in the single digits for the past five years, and below 40 since 2007.


The shift coincides with a decade in which overall net farm income after


depreciation has been largely negative. This isn’t necessarily a sign of greater fiscal discipline on the part of producers, but rather stronger farm cash receipts and steady investments in technology. “There’s been increased investment on equipment and technology so, as a result, costs have shrunk as a result of efficiencies, so the balance sheet is healthier – in general – across the board,” Yan-Yan Lee, an accountant and farm business advisor based in Vancouver, said.


Canada’s strengthening dollar following the financial crisis allowed farmers to import equipment at an advantage; meanwhile, the reversal in the loonie’s fortunes in the past three years has made exports a more lucrative area of


business.


Meanwhile, a consumer preference for local foods has created market opportunities for many growers. Many now add value to their products, helping them secure more value than they used to see. This has helped cash flow


and in turn kept bankruptcies low.


“It comes about two ways – increased revenues or decreased costs,” Lee said of the improved finances that have kept farmers back from the brink. “In this case, it was a combination of both.”


Familiar faces in new roles at ministry by TAMARA LEIGH


DUNCAN – The wait for a new regional agrologist to serve the south island is over. Derek Masselink will fill the position with the BC Ministry of Agriculture, taking regional responsibility for Vancouver Island from Victoria up to Ladysmith and across to Port Renfrew, as well as the southern Gulf Islands. Masselink got his start in agriculture spearheading the UBC Farm initiative and has spent the past 13 years working in the south island area as a consultant on individual farm plans, working with municipalities on agriculture-related planning


issues, as well as a number of agriculture area plans around the province. He brings a


diverse skill set to the position, including a background in wildlife ecology, landscape


architecture and agroecology. Derek has worked in a wide variety of areas including: protected areas planning, First Nations and treaty negotiation, landscape planning and management; agroecology and agricultural design; education for


Professional Services


Quality First in Agriculture Inc.


Helping industry build & implement practical & sustainable programs & publications


To see past projects and potential scope of services visit www.qfirst.ca


For more information or to pursue an idea contact:


Annette Moore B.Sc.(Agr), M.Sc., P.Ag.


Ph: 604-309-3509 E: qfirst@telus.net


sustainability; governance; community development; and organizational and project management. “What I’ve


DAVE MASSELINK


been focused on since leaving UBC is establishing connections between people who aren’t interested and concerned with agriculture and those that are trying to make a living running


farms and farm systems,” says Masselink. “I’m interested in how to bring people together to understand the challenges, and developing an appreciation of what agriculture can be in communities.”


“I feel very fortunate to be able to work with a


community that I really love and respect,” he adds.


New superintendent


Chris Zabek, regional agrologist for Fraser Valley North, has taken on responsibility as


Expert farm taxation advice: • Purchase and sale of farms


• Transfer of farms to children • Government subsidy programs • Preparation of farm tax returns • Use of $1,000,000 Capital Gains Exemptions


Chris


Henderson CPA, CA


Nathalie


Merrill CPA, CMA


Dustin


Stadnyk CPA, CA


Approved consultants for Government funding through BC Farm Business Advisory Services Program


ARMSTRONG 250-546-8665 | LUMBY 250-547-2118 | ENDERBY 250-838-7337 TOLL FREE 1-888-818-FARM | www.farmtax.ca


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Superintendent of Farmers’ Institutes. He took on the additional role in March this year following the retirement of Greg Taggart.


The Superintendent of Farmers’ Institutes is


appointed under the Farmers’ and Womens’ Institutes Act to carry out administrative functions under the act, including incorporation of new farmers’ institutes, changes to bylaws or constitutions and receiving annual reports and financial statements.


“Taking on this role was interesting to me partially because my work as a regional agrologist brings me into contact with people involved in farmers institutes, and they are so passionate,” says Zabek. “These people live and breathe agriculture, and want to do the best for agriculture. You can’t help but bump up against that attitude and be inspired by it.”


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