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The year 2019 was a challenging one for many farmers. The turbulence of trade wars hurt grain growers in Canada directly, but the impact of a doubling of tariffs on US exports of apples and cherries to China had indirect impact on Canadian apple and cherry markets. This was compounded by rainy weather throughout the season, a sign of the more erratic weather due to climate change.
Another complexity is the disconnect between consumer prices and what growers receive. A large part of this is due to the massive consolidation of retailers. For some reason, retailers (and meat packers in, for example, the hog industry) do not adequately compensate producers of high-quality, high-consumer demand products. The result is, in many cases, producers under financial stress who can no longer afford to invest in the production of quality products. We need retailers who support quality. Costco seems to follow this approach, and it has resulted in tremendous growth while the tradition ‘grinders’ continue to see market share erode. We hope all retailers will wake up and realize that a fair price is an investment in the future. Essentially, retailers need to change their mindset, using new models of valuing our farm products.
The federal and provincial governments have not stepped up to the table during these times of turbulence. All relevant farm associations support an increase in the AgriStability ‘program margin’ support level from 70% to 85%. However, the December meeting of Federal and Provincial Ministers of Agriculture failed to make progress on improving AgriStability to turn around the declining enrolment in the program. “The continued lack of progress towards any significant program reforms leaves farmers without much-needed relief at this critical time, nor any certainty that assistance is on the way," the Canadian Federation of Agriculture said in a statement after the Federal-Provincial-Territorial meeting.
Associations will continue to push hard to get appropriate government change, but it is embarrassing that Canada lags behind all developed countries in agriculture support, and it is a further discredit to the province of BC that it lags behind all Canadian provinces in agriculture program support. Since governments have not risen to the occasion, what can growers do?
- Seek out your MLA and MP - ask them to have coffee so that you can discuss priority agricultural programs that need improvement - now not later.
- Support your association to continue pressing the government for change.
- Take action on your farm to increase (or at least buffer the decrease) in profitability:
- Seek markets that pay for premium products. Since BC is not a low cost, mass producer of farm products, farms here must specialize to survive. This industry strategy has been in place for years, but our progress as an entire industry has not been as responsive to the farm-level challenges as it needs to be. ‘Good’ is not ‘good enough’ - we need to be excellent to survive and profit. Do the math on premium product - is the extra cost of producing a larger, redder apple or a large firm cherry worth it?
- Become more efficient. There are some ways that you can save costs and improve your productivity. For example, enrol in the “Certificate of Recognition” (COR) Program. This program is under utilized - it works for smaller farms as well as larger, consolidated farms. COR provides a reduced WorkSafeBC premium when certain records, standards and training practices are implemented. The reason is that better safety systems are shown to reduce accidents and therefore rates will be reduced for anyone putting in place these systems. Contact your AgSafeBC ‘Regional Consultant’ for free assistance: http://agsafebc.ca/about/our-team/,
You could also make sure your crop protection products are properly timed and that sprayers are calibrated. A product applied at the incorrect time may be useless and therefore a waste of money. Your money is important and it is up to you to get value for that money. Similarly, calibrating your sprayer will maximize effectiveness (benefit) while optimizing cost (and possibly save money by not over-applying products). Contact your horticultural advisor.
Prepare an Environmental Farm Plan with the free assistance of an EFP Plan Advisor. Once the plan is complete, you may apply for funding of your priorities - such applications must be submitted before a Spring deadline, and such funding applications are not guaranteed as funding is limited. Sometimes funding comes through in later years, especially as farm associations seek more funding to be provided to such programs. If you have an EFP in place, it is valid for a 5 year period. Contact ARDCORP at 1-866-522-3447.
One way to add value is to focus on things that you can do or invest in that will improve returns. During times of financial stress, many of the best growers will re-double their horticultural efforts to achieve the best quality product and the best yields. Your horticultural advisor will play a key role in tuning up horticultural practices, while economizing on crop inputs. Do you or your Horticultural Advisory make use of two important on-line tools: the Tree Fruit Production Guide (www.bctfpg.ca) and the Decision Aid System by the Sterile Insect Release Program.
There are other ways to add value, with many of these opportunities very Some growers have added cideries, some have gone organic, others are into agri-tourism and direct marketing. Look around in your neighbourhood and ask a diversified grower for advice.
Improve labour efficiency. This is a complex mix of estimating the right number and timing of hiring employees for your farm, getting the right people on your farm to do the work (and for larger farms, getting the right supervisors), and finally the often-forgotten secret of motivating your employees to do their best for the operation. For small farms relying on a locally-available seasonal worker pool, the Seasonal Agricultural Worker Program is probably not an option Associations are urgently seeking other solutions for smaller farm operations to access workers. For larger farms, the SAWP and Ag Stream Programs are available and supported by governments.
In these challenging financial times, it is not all up to you! You will find support in your family, staff, neighbours, industry and government programs. Communicate, communicate, communicate: that is one way to find strength as a whole industry in withstanding the turbulent, challenging year ahead.
