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Copyright © 2001 Eastern Ontario Farmers Forum Inc. All Rights Reserved

Young farmers declining
Start-up costs are more than $1 million

OTTAWA — There are fewer farmers across Canada than there were in 1996. But young farmers under 35 are declining faster than any other age group.

A 2001 Census of Agriculture report by Statistics Canada reveals that between 1996 and 2001, farmers as a group, declined by 10 per cent to 346,200 but younger farmers have dropped by nearly one-third. In 2001, there were 39,915 farmers under age 35 in Canada.

However, the number of farmers dropping out is significantly less than between 1991 and 1996.

Quebec seems to be the most appealing province in Canada for young farmers, with 13.7 per cent of operators under 35. This compares with 10.6 per cent in Ontario. And that’s a 35 per cent decrease over the last 10 years.

The median age of a farm operator – the point where half are above and half below – is 49-years of age.

Capital investment is one of the main blockages to young people getting into farming. The Census says capital start-up costs has risen from $800,000 in 1996 to $1.4 million for a hog farm and $1.1 million for a dairy farm. Though farms are decreasing in numbers, production is increasing with increased capitalization.

The young farmers tend to be part of a multi-generational operation or have inherited their farm or worked out family arrangements.

About half the multi-generational farms have capital investments of $1 million or more.

Older farmers appear to be satisfied with less than younger farmers. About 75 per cent of the older farmers have gross receipts under $100,000. This group accounted for about a quarter of all operators.

The multiple generation farm tends to have higher incomes, about a third have gross receipts over $250,000 and the best profit ratio on investment. There is no correlation between a young operator and higher efficiency.

About 45 per cent of all farmers work at non-farm jobs. But on farms where gross receipts are at least $250,000, 23 per cent of operators have non farm jobs.