Food producers receive fair return for their work.
Small and mid-sized farms are essential for local food security and creating a sustainable food system—one that ensures that people can eat sufficiently and nutritiously for generations to come. Unfortunately, the labour required to maintain these operations has been devalued.
To produce food for both Ontario eaters and for export, the agricultural sector has consistently relied on a combination of unpaid, low-paid, and “unfree” labour. However, we should not treat the labour concerns on all Ontario agricultural operations equally. Among small and mid-sized farms, where profit margins are extremely low to non-existent, operators are themselves low income workers.
It is farmers who provide the food and fibre that sustains people every day. Canadian farmers, with their knowledge, skills, management and work produce billions of dollars of value every year. Yet, farmers continue to struggle for economic dignity.
Sustainable farms, unsustainable incomes.
Most of the revenue farmers receive makes only a short stop in their own bank accounts before bills must be paid. There is a large and growing gap between cash taken in and the income left to live on. In 2019, expense costs consumed over 93% of farm revenue and left farmers with just 7%. When climate-related conditions destroy yields and hamper harvest, farmers have even higher costs and lower revenues. Meanwhile, as farmers adopted a high-input, high-output approach, corporations took nearly $1.5 trillion dollars of the value created by their farms. To make ends meet, farmers have been forced deeply into debt and most farm families rely on off-farm income.
At the same time, the number of farmers continues to fall, while the average farm size increases and farmland prices go up. The next generation of farmers is unable to afford land, while over 90% of farms have no succession plan. As farmers retire or leave farming and their rural communities for more reliable livelihoods, land is increasingly controlled by farmland investment companies and absentee landlords. The fabric of rural life has become frayed and torn as the wealth is extracted by multinational corporations and governments offload costs onto small communities with ever diminishing capacity. Our economic, social and environmental problems are both serious and urgent.
Tackling the farm income crisis.
Our mandate is focused on economic dignity for farmers. For over fifty years we have promoted the betterment of farmers in the attainment of their economic and social goals; the reduction of costs and other measures designed to increase the economic benefits of farming; legislation and other forms of government action for the benefit of farmers; and a higher standard of community life in agriculture.
The NFU-O is your voice at the table advocating on behalf of small and medium sized farms. Too often in Ontario small farms do not meet eligibility requirements for government relief programs and subsidies when, a lot of the time, they are the farmers who need it most. We believe that supporting these smaller-scale farms is not just vital for the agricultural industry's diversity, but also for ensuring local food security and fostering sustainable farming practices. The NFU-O works to bridge this gap, ensuring equitable access to resources and opportunities for every farmer, regardless of their size.
Farm workers are an essential part of our agriculture future and also deserve fair return for their vital work. There is a shortage of living-wage agricultural jobs which has led to a scarcity of skilled and experienced workers. Without living wages/incomes we are unlikely to attract enough workers willing to acquire the skills and dedicate their lives to agricultural production. We believe that Ontario labour laws, including minimum wage laws, the right to form a union, and other key labour protections should be extended to all farm workers – both domestic and migrant .
Consumers need to know that less and less of the money they spend on food actually makes it back to the farmer. Retail food prices are high because meat packers, other large processors, and big retailers are taking ever larger shares. For most food products, the farmers’ share continues to shrink.
– Stewart Wells, Former NFU Vice-President of Operations & Saskatchewan farmer
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Frequently Asked Questions
The farm income crisis refers to a situation where farmers (especially small and medium-sized ones) struggle to generate sufficient income from their agricultural activities to cover their expenses and maintain a decent standard of living. In this crisis, the revenue generated from farming operations often falls significantly short of the costs incurred in production, leaving farmers with limited financial resources. Several factors contribute to the farm income crisis, including rising production costs, unpredictable weather patterns due to climate change affecting crop yields, low commodity prices, and global market fluctuations. This crisis can lead to increased debts, financial instability, and challenges in sustaining farming operations, often forcing farmers to seek off-farm employment or quit farming altogether.