Survey contrasts big business record profits with farm losses

SASKATOON -- While 2004 was the best year in Canadian history for agri-businesses, it was the second-worst year for farmers in Canada,

A National Farmers Union report called “The Farm Crisis and Corporate Profits” discovered that in 2004 the Canadian farmer had a realized net income from markets – a measure that subtracts out government payments -- of negative $10,000 per farm. The year before, 2003, was the worst year as farmers recorded a negative $16,000 per farm.

The NFU contrasted that data with 75 agri-business corporations in 2004 and found that 41 of those companies posted record profits, while 16 companies had near-record profits (either second or third best year). That translates to 76 per cent of companies surveyed had record or near-record years.

The NFU agrees with Dwayne Andreas, CEO of Archer Daniels Midland Corporation, who is quoted in the report saying: “The free market is a myth. Everybody knows that. Just very few people say it. You can’t have farming on a totally laissez-faire system because the sellers are too week and the buyers are too strong.”