Farmland for the Few

·6 min read

More than once during the weeks leading up to the provincial election Premier Moe referred to the province as being a supplier of raw materials to the world, but is this where the province should remain? Over 70% of Canada’s farmland is located in the prairies and historically, Saskatchewan was referred to as the “bread-basket of the world”, but with the shift away from primarily wheat production and the growth of the oil and gas sectors, that title has fallen into disuse. Yet, Saskatchewan remains in the realm of a primary producer. The problem with that status became evident earlier this year when COVID-19 arrived on our doorstep. As a province we are heavily reliant on other districts to supply our finished products and when they run into problems, such as the outbreaks of the coronavirus among their employees, the ripples are felt all along the food chain. But the authors of a new report just released by the Canadian Centre for Policy Alternatives highlights another factor that while many across the prairies realize its happening, may not realize the full extent nor the implications of the trend.

For years ‘bigger is better’ has been mantra of our culture, bigger homes, bigger trucks, bigger toys, and this is true of farming as well. Since the 1980’s farmers in Saskatchewan have been encouraged become bigger. Marginal farmland was pulled into production to make for bigger crops. Bigger equipment could complete the farmers work in less time and well, bigger equipment meant that it was possible to work more land, and the cycle continued. The era of broadly distributed land ownership, of food production by small and medium-sized family farms, is fading and the small farm is all but extinct. The number of young farmers in Alberta, Saskatchewan, and Manitoba has, according to the report Concentration Matters: Farmland Inequality on the Prairies, declined by more than 70 percent, in just one generation—since 1991 (Statistics Canada Table 32-10-0169-01). The report authored by Darrin Qualman, Annette Aurélie Desmarais, André Magnan, Mengistu Wendimu for the Canadian Centre for Policy Alternatives (CCPA) states that while it remains the case that local families do operate the vast majority of our farms, there are fewer and fewer of those families every year. Thirty-eight percent of the farmland in Saskatchewan is operated and controlled by just 8 percent of Saskatchewan farms or just over 2,400 operations. These 2400+ farms average 9,382 acres in size, though many are much larger.

The reduction in the number of small farms, the concentration of farmland and farm income into fewer and fewer large operations, and barriers to entry created by rising land prices (See Farm Credit Canada, Farmland Values Report), all make it more difficult for young and new farmers to enter agriculture, the report goes on to say. This difficulty in gaining access to farmland is therefore, effectively stifling the possibility of farming as a career choice for young Canadians (Qualman, Akram-Lodhi, Desmarais, and Srinivasan, 2018). Farms larger than 10,000 acres make up less than 2 percent of total Prairie farms, yet those very large operations captured approximately 15 percent of gross revenues and net income. On average, these very large farms earned net incomes of more than $820,000 before depreciation. At the other end of the size distribution, farms smaller than 1,000 acres, though they make up 53 percent of total farms, captured just 21 percent of revenues and 18 percent of net income. On average, these farms earned net incomes of just over $34,000 each. Because margins are tight and per-acre net income is low on cattle farms and grain and oilseed farms, a young or new farmer on a small farm with few acres paid for has a very limited ability to pay for additional acres, large farms often have greater capacity to borrow money (on better terms than those usually offered to smaller farms), and as a result unless a young farmer can partner with another, either a family member or another farmer looking to start ‘slowing down’, there is no avenue for him or her to get in and fewer and fewer farm children are returning to the farm. In 2014, for instance, 73 percent of farmland transactions involving an ownership change were between arms-length parties (neighbours), whereas 27 percent were among family members (Magnan and Sunley 2017).

The rate of farmland concentration however, is running far ahead of the rate of farm loss. Since 1966, Canada has lost half of its farms, but the number of farmers who control the vast majority of land is far smaller than the numbers above suggest. According to the report, across the Prairie Provinces, farms larger than 5,000 acres, which represents 7 percent of all farms, own 27 percent of all farmland that is owner-operated, also those same 7 percent of Prairie farms that are larger than 5,000 acres, lease 67 percent of government leased farm land and rent or lease 35 percent of all land rented or leased by farmers from non-government farmland owners. So, while it may remain the case that our farmland is owned by local families, it is also the case that most is owned by a very small percentage of families. In 2016, 37,622 farm operations owned about half of all Canadian agricultural land in private hands. Translated into number of people, the authors of the study made a rough assumption that each farming operation included, in some combination of parents, children, spouse/partner, about 2.5 landowners. Thus those 37,622 farm operations become 94,055 people (less than .3% of the Canada’s entire population) own half of the country’s food-producing acreage.

The great exit of young people from rural to urban areas is well documented in report after report in Statistics Canada library, but to bring this into a more local perspective, the 1976 census shows the population of the RM of Fish Creek to be 591, by 1981 that number had dropped to 510. ( Twenty years later, the population was 382 and while that number is now recorded as 345, in the intervening years it did drop as low as 307 at one point. The report concludes that unless government policies or economic shocks alter these trends, 20 years from now, the area of land operated by small farms will be negligible, and farms larger than 5,000 acres may operate 50 to 60 percent of Prairie farmland (up from about 37 percent today).

Carol Baldwin, Local Journalism Initiative Reporter, The Wakaw Recorder