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Agriculture

Canadian agriculture’s $30 billion opportunity

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4 minute read

From Farm Credit Canada

Farm Credit Canada’s (FCC) economics team says rekindling productivity growth in Canadian agriculture is a $30 billion opportunity over 10 years according to a new report.

“If the agriculture industry can return productivity growth to where it was two decades ago, FCC estimates it would add as much as $30 billion in net cash income over 10 years,” says J.P. Gervais, FCC’s chief economist. “Developing innovative solutions, adopting new technology and leveraging data and insights can boost productivity growth and pay off in a big way for Canadian farms.”

Canada’s agricultural productivity growth has slowed since 2011 which is consistent with global agricultural productivity trends.

Agricultural productivity evaluates how inputs such as labour, capital, land, fertilizer and feed are efficiently transformed into outputs such as crops, livestock and aquaculture products. Productivity growth happens when producers increase their output using the same or smaller quantities of inputs.

Total factor productivity measures the combined effects of new technologies, efficiency improvements and economies of scale. It is a key metric for assessing trends in agricultural productivity.

“Between 1971 and 2000 there was steady productivity growth on Canadian farms before hitting a plateau,” explains Gervais. “We are now seeing declining growth with a further decline projected for the next 10 years. While that is the current projection, the entire agrifood supply chain can rally around the innovation spirit of farm input manufacturers and suppliers, farm operators, researchers and food processors to restore growth in agricultural productivity towards its peak.”

Average annual total factor productivity growth in Canadian agriculture by decade

Figure 1 showing average annual TFP growth in Canadian agriculture by decade

Sources: USDA database on agricultural productivity and FCC calculations

As a global leader in growing, processing and exporting safe and reliable food, Canadian producers have a long history of adopting new technology and production practices that feed the world and protect the environment.

“The world’s population is expected to reach nearly 10 billion people by 2050. The Canadian agriculture industry is well positioned to be a leader in the technology and innovation that will meet that demand for food,” says Justine Hendricks, FCC president and CEO. “At FCC we offer a full complement of financing services and resources to support the industry in sustainably increasing its productivity and maximizing the resulting economic gains.”

The $30 billion opportunity that exists for the industry by restoring productivity growth to its historical peak is calculated using a framework that takes into account the relationship between total factor productivity,  farm product prices and farm input prices.

“I have confidence in the agriculture industry’s ability to enhance productivity growth,” said Hendricks. “FCC is dedicated to supporting our customers as they meet these new demands and pursue productivity improvements through a variety of operational shifts designed to reduce input costs and maximize efficiencies.”

FCC is Canada’s leading agriculture and food lender, dedicated to the industry that feeds the world. FCC employees are committed to the long-standing success of those who produce and process Canadian food by providing flexible financing, AgExpert business management software, information and knowledge. FCC provides a complement of expertise and services designed to support the complex and evolving needs of food businesses. As a financial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.

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Agriculture

Health Canada indefinitely pauses plan to sell unlabeled cloned meat after massive public backlash

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From LifeSiteNews

By Clare Marie Merkowsky

Health Canada has indefinitely paused its plan to allow unlabeled cloned meat in grocery stores after thousands of Canadians, prominent figures, and industry leaders condemned the move.

Health Canada is pausing its plan to put unlabeled cloned meat in Canadian grocery stores, following public outcry.

In a November 19 update on its website, Health Canada announced an indefinite suspension of the decision to remove labels from cloned meat products after thousands of Canadians condemned the plan online.

“The Government of Canada has received significant input from both consumers and industry about the implications of this potential policy update,” the publication read. “The Department has therefore indefinitely paused the policy update to provide time for further discussions and consideration,” it continued, adding, “Until the policy is updated, foods made from cloned cattle and swine will remain subject to the novel food assessment.”

In late October, Health Canada quietly approved removing labels from foods derived from somatic cell nuclear transfer (SCNT) clones and their offspring. As a result, Canadians buying meat from the grocery store would have had no way of knowing if the product was cloned meat.

Many researchers have documented high rates of cloning failure, large offspring syndrome (LOS), placental abnormalities, early death, and organ defects in cloned animals. The animals are also administered heavy doses of antibiotics due to infections and immune issues.

Typically, the offspring of cloned animals, rather than the cloned animals themselves, are processed for human consumption. As a result, researchers allege that the health defects and high drug use does not affect the final product.

However, there are no comprehensive human studies on the effects of eating cloned meat, meaning that the side-effects for humans are unknown.

News of the plan spread quickly on social media, with thousands of Canadians condemning the plan and promising to switch to local meat providers.

“By authorizing the sale of meat from cloned animals without mandatory labeling or a formal public announcement, Health Canada risks repeating a familiar and costly failure in risk communication. Deeply disappointing,” food policy expert and professor at Dalhousie University Sylvain Charlebois wrote on X.

Likewise, Conservative MP Leslyn Lewis warned, “Health Canada recently decided that meat from cloned animals and their offspring no longer needs a special review or any form of disclosure.”

“That means, soon you could buy beef or pork and have no idea how it was bred,” she continued. “Other countries debate this openly: the EU has considered strict labelling, and even the U.S. has admitted that cloned-offspring meat is circulating.”

“But here in Canada, the public wasn’t even told. This is about informed choice,” Lewis declared. “If government and industry don’t have to tell us when meat comes from cloned animals, then Canadians need to ask a simple, honest question: What else are we not being told?”

Likewise, duBreton, a leading North American supplier of organic pork based out of Quebec, denounced the move, saying, “Canadians expect clarity, transparency, and meaningful consultation on issues that directly touch their food supply. As producers, we consider it our responsibility and believe our governing food authorities should too.”

According to a survey conducted by duBreton, 74 percent of Canadians believe that “cloned meat and genetic editing practices have no place in farm and food systems.”

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Agriculture

Federal cabinet calls for Canadian bank used primarily by white farmers to be more diverse

Published on

From LifeSiteNews

By Anthony Murdoch

A finance department review suggested women, youth, Indigenous, LGBTQ, Black and racialized entrepreneurs are underserved by Farm Credit Canada.

The Cabinet of Prime Minister Mark Carney said in a note that a Canadian Crown bank mostly used by farmers is too “white” and not diverse enough in its lending to “traditionally underrepresented groups” such as LGBT minorities.

Farm Credit Canada Regina, in Saskatchewan, is used by thousands of farmers, yet federal cabinet overseers claim its loan portfolio needs greater diversity.

The finance department note, which aims to make amendments to the Farm Credit Canada Act, claims that agriculture is “predominantly older white men.”

Proposed changes to the Act mean the government will mandate “regular legislative reviews to ensure alignment with the needs of the agriculture and agri-food sector.”

“Farm operators are predominantly older white men and farm families tend to have higher average incomes compared to all Canadians,” the note reads.

“Traditionally underrepresented groups such as women, youth, Indigenous, LGBTQ, and Black and racialized entrepreneurs may particularly benefit from regular legislative reviews to better enable Farm Credit Canada to align its activities with their specific needs.”

The text includes no legal amendment, and the finance department did not say why it was brought forward or who asked for the changes.

Canadian census data shows that there are only 590,710 farmers and their families, a number that keeps going down. The average farmer is a 55-year-old male and predominantly Christian, either Catholic or from the United Church.

Data shows that 6.9 percent of farmers are immigrants, with about 3.7 percent being “from racialized groups.”

Historically, most farmers in Canada are multi-generational descendants of Christian/Catholic Europeans who came to Canada in the mid to late 1800s, mainly from the United Kingdom, Ireland, Ukraine, Russia, Italy, Poland, the Netherlands, Germany, and France.

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