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4 Mind your business BC agriculture minister Norm Letnick reeled off a string of numbers that should


have stirred pride in the heart of any farmer listening to him at this year’s BC Agriculture Gala in Abbotsford. He even encouraged listeners to give themselves a hand for the great work they do and the contribution they make to BC’s economy.


But when asked how many of them were posting a profit in such robust times,


few if any hands showed. The fact is, farmers are a modest lot. We also know too well how a turn in the


weather can snatch defeat from the jaws of victory. Profit is something no one wants to talk about because it often depends less on the farmer’s effort and just as often slips away when it comes into sight. Boasting of our own good fortune can also seem insensitive to those sideswiped by circumstances beyond their control.


But there’s another side to a modest approach that’s downright practical. When we mind our own business, we can actually avoid foreseeable risks. Sure, farming is often a lifestyle choice. Yet it’s also a way to make a living, with


many family farms now operating as family corporations. Thinking about the family farm as a business enterprise isn’t romantic, but it’s essential to success in a world where society has high expectations of farmers. Moreover, when family farms grow, they need to have the management tools any other growing business needs. This is why having written protocols in place for farm safety and animal welfare


are as important as having a financial plan that you can present to a banker. It’s tough to get credit from the bank if you can’t explain how you’ll use the money and repay it. Similarly, documenting farm safety protocols lets workers know you’re looking out for them and know what to do when accidents happen. A written plan also lets insurance companies know that people did what they could to limit risks. Similarly, an animal welfare plan can earn credit with consumers, who want to


know that farmers are producing food in an ethical manner. Winning and keeping markets depends on treating workers, livestock and the


land well. This is true whether those markets are across the road or across the border.


It’s a tough long, road from start-up to success


In 1941, the population of Canada was 11.5 million and the number of farms peaked at nearly 733,000. There was one farm for every 16 Canadians. By 2010, the population reached more than 32 million and the number of farms had fallen to under 206,000 – roughly one farm for every 156 Canadians. In 70 years, the population increased 280%, the number of farms dropped by 72% and the average farm size


Back Forty BOB COLLINS


grew from 237 acres to 778 acres. Top it off with incredible leaps in productivity and the steadily aging operators who are left and you have to wonder what the future holds. Rapidly advancing technology promises to


re-write the agricultural landscape for the next 30 years. Bio-engineering, robotics, mega data, GPS- enabled precision seeding and input application, sensor monitoring, wireless connectivity and artificial intelligence will be able to monitor and micro-manage every square metre in a 500-hectare field, every plant in a 20-hectare greenhouse and every cow in a I,000-head dairy. This suite of technology, along with components we’ve yet to imagine, will continue to drive the production gains and efficiencies of the past 70 years, and farm


numbers will continue to shrink. Dairy farms are a case in point. There were 6,100 dairy farms in the province in


1941. Rapidly adopted mechanization and AI- enabled genetic improvement ramped up production and by 1995, the number of farms was down to 864. Cows are now commonly computer- fed and monitored and robotic milking is routine. The number of dairy producers in January 2017 was 486 (despite long-standing and ongoing efforts by the industry to facilitate new producers). It is a common trend. Technology not only makes


growth possible, it makes it inevitable. As productivity continues to rise and the number of farms shrinks, there is a growing fiscal dichotomy in agriculture. Specifically, 2% of farms generate 40% of total gross farm receipts at one end of the scale and 40% of the farms generate 2% of gross farm receipts at the other. Overall, two-thirds of farms at the low end of the scale share 10% of gross farm income. Farms on the other end of the spectrum are nearly always highly mechanized and fully involved in whatever innovation or technology will make them more productive and profitable. They are often long established enterprises. It is not unusual to find farms that represent the accumulated assets of four or five generations.


The contrast is the small farm, perhaps heavily


financed, without the scale or fiscal resources to embrace any meaningful mechanization or


Publisher Cathy Glover


604-328-3814 . publisher@countrylifeinbc.com Associate Editor David Schmidt 604-793-9193 . davidschmidt@shaw.ca


The agricultural news source in British Columbia since 1915 Vol. 103 No 3 . MARCH 2017


Published monthly by Country Life 2000 Ltd.


Contributing Editors Peter Mitham . Tamara Leigh news@countrylifeinbc.com


Advertising Sales & Marketing Cathy Glover sales@countrylifeinbc.com


Production Ass’t: Naomi McGeachy . Top o’ the morning, Pete! www.countrylifeinbc.com


technology. Some of these farms fall into the lifestyle


category and are not burdened with the expectation of profit. Many others, however, embody the dreams and aspirations of people seeking a foothold in bonafide, profitable agriculture. It is here that we find the bulk of aspiring young farmers who are paying their own way without the benefit of a family connection to land. It is a long ladder to climb. Land costs are prohibitive; particularly, small


parcels in high demand for residential and rural living use. Five-acre parcels of good bare land near here are selling for $350,000. Whether purchased or leased, the land is only one piece of a difficult puzzle. What can be grown? Where can it be sold? How much can be grown? How much will be sold? Will the sale price cover all of the associated costs? And how many others governed by the same parameters will be trying to do the same thing? Despite the challenges, there are innovative small farmers fitting the pieces together and developing viable businesses. The goal for all of them should be a rung high enough up the ladder to become part of a group that is sharing a bigger slice of the economic pie. The ultimate irony is that as successful small farms innovate and expand, they will shrink the slice for those they leave behind.


Advertising is accepted on the condition that in the event of a typographical


error, that portion of the advertising space occupied by the erroneous item, together with reasonable allowance for signature will not be charged, but the balance of the advertisement will be paid for at the applicable rate. In the event of a typographical error which advertises goods or services at a wrong price, such goods or services need not be sold at the advertised price. Advertising is an offer to sell, and may be withdrawn at any time. All advertising is accepted subject to publisher’s approval. All of Country Life in British Columbia’s content is covered by Canadian copyright law.


Opinions expressed in signed articles are those of the writer and not necessarily those of Country Life in British Columbia. Letters are welcome, though they may be edited in the interest of brevity before publication.


All errors brought to our attention will be corrected. 36 Dale Road, Enderby BC V0E 1V4 . Publication Mail Agreement: 0399159 . GST Reg. No. 86878 7375 . Subscriptions: $2/issue . $18.90/year . $33.60/2 years . $37.80/3 years incl GST


COUNTRY LIFE IN BC • MARCH 2017


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