Last Updated On 20 April 2023, 9:48 AM EDT (Toronto Time)
Approximately 40 percent farmers in Canada are expected to retire within the next 10 years, with 66 percent of them not having a succession plan.
To address the farmer shortage is to update Canada’s immigration programs to allow for 30,000 farm-focused new immigrants.
At the same time, the agriculture industry is expected to see a reduction of 24,000 workers who are engaged in farming, nursery, and greenhouse activities.
This would result in a major farmer shortage in Canada.
The new RBC report suggests creating a federal process for experienced temporary foreign workers to obtain permanent residency status.
However, the report indicates that the Temporary Foreign Worker Program only “scratches the surface of the labor shortage”.
“We’re also talking about radically new forms of agriculture like the explosion of the greenhouse industry … and the emergence of the vertical farming sector,” said Evan Fraser, co-author of the report and director of the Arrell Food Institute at the University of Guelph, where he is a professor of geography.
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Immigration pilot program for agriculture sector set to expire in May
In 2020, a pilot program was launched in Canada to provide a pathway to permanent residency for experienced non-seasonal agricultural workers.
The program was aimed at accommodating up to 2,750 individuals, but it will come to an end in May of this year.
According to the government, over 1,500 individuals have already been admitted to the program as of February 2023.
The government is presently assessing the program and the potential for extending it beyond its expiration date.
However, a spokesperson from the department stated that granting permanent residency to migrants was not the answer to the labor shortage.
In addition, the spokesperson emphasized that newcomers would only remain in the industry if it offered competitive wages, good working conditions, and long-term prospects for them and their families.
The report also proposes that Canada seek out farmers from countries like the Netherlands and New Zealand who may be compelled to downsize or shut down if they do not satisfy stringent climate change regulations governing emissions.
Cause of the farmer shortage
Lack of proper succession plan
Lorne and Chris Hamblin, farmers from Morris, have 4,000 acres of farmland near Winnipeg, and they are worried about the future of farming due to the lack of proper succession planning.
Chris believes that farmers should start thinking about this as early as their 30s and 40s and not wait until their 60s or 70s to figure out how to pass on their farm to the next generation.
He emphasizes the need for the agriculture industry to change with the changing times.
Lorne adds that there are many jobs in the farming industry, and food safety is the top priority, which makes it a positive field to work in.
Big business
Keith Currie, the head of the Canadian Federation of Agriculture, emphasizes the importance of attracting younger people to the agricultural sector and educating them about the diverse career opportunities it offers, ranging from advisory and financial services to various scientific fields such as crop and livestock genetics, soil science, equipment design, software development, and veterinary science.
The report recommends that Canada must welcome more than 30,000 permanent immigrants by 2033 to take over existing farms to avoid a labor shortage.
This is a critical issue that requires urgent attention, according to Fraser, who authored the report.
Effects of farmer shortage
The predicted labor crisis could cause Canadians to spend more on groceries, according to Heather Bruce, chair of the Department of Agriculture Food Nutritional Science at the University of Alberta.
Bruce said that the COVID-19 pandemic gave a glimpse of the possible future, with meat processing slowdowns and ingredient shortages causing food insecurity, price hikes, and empty shelves at retail stores.
She emphasized that Canada’s immigration policies are critical to supporting food security and ensuring the competitiveness of the country’s food companies, not just in terms of supply, but also in keeping prices reasonable
Solutions
Better support
Experienced farmers who wish to start their farms in Canada face several challenges. One of them is the soaring prices of farmland, which have increased by over 20 percent in five years.
In some areas, even a budget of $1 million may not suffice to buy a small farm, according to Rajin Gill, who specializes in farm realty in Abbotsford, B.C. “I think there’s a big discrepancy between pricing and what [newcomers] can afford,” said Gill.
Saskatchewan has the lowest price per acre in Canada, but there is a lack of support for newcomers beyond just money.
Rehan Khan, a newcomer, faced challenges in finding affordable, fertile land in his price range near Regina, where his family had settled.
He finally purchased land near Yorkton and rents a place nearby so he can stay near the farm.
However, his 160-acre farm is relatively small compared to other operations in Saskatchewan, which made it difficult for him to find a company willing to rent out machinery.
Fortunately, a neighboring family offered to rent their machines and even taught him how to use them.
Khan believes that government employees should provide support to newcomers by giving them upfront information on topics ranging from renting machines to selling products.
He believes that these things should not only be considered for immigrants but also for government agencies that want to bring in farmers to occupy and take over the lands.
Investing in tech and people
To avoid the labor crisis, farmers should invest in technology to automate operations, says the report. Steven Donald, a 43-year-old grain and livestock farmer near Moosomin, Saskatchewan, has already spent a lot of money on technology to make his farm more efficient.
He has also hired a temporary foreign worker for the first time in his family farm’s history as he cannot find local, consistent help.
“When the crunch comes on and we have to put so many acres in a short time, that’s when we need the extra help. And that help is harder and harder to get,” Donald said.
Despite the technology, managing a farm still requires a certain number of people per acre to properly carry out operations such as weed scouting and seed timing.
What is the cause of the farmer shortage in Canada?
One of the major causes of the farmer shortage in Canada is the lack of proper succession planning.
According to a recent report by RBC, approximately 40 percent of Canadian farmers are expected to retire within the next 10 years, with 66 percent of them not having a succession plan.
What is the proposed solution to the farmer shortage in Canada?
The proposed solution to the farmer shortage in Canada is to update Canada’s immigration programs to allow for 30,000 farm-focused newcomers.
The report suggests creating a federal process for experienced temporary foreign workers to obtain permanent residency status.
However, the report indicates that the Temporary Foreign Worker Program only “scratches the surface of the labor shortage”.
What are the effects of the farmer shortage in Canada?
The predicted labor crisis could cause Canadians to spend more on groceries, according to Heather Bruce, chair of the Department of Agriculture Food Nutritional Science at the University of Alberta.
Bruce said that the COVID-19 pandemic gave a glimpse of the possible future, with meat processing slowdowns and ingredient shortages causing food insecurity, price hikes, and empty shelves at retail stores.
Source: RBC
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