By Ethan Wallace, Director, Ontario Federation of Agriculture

A statistic that is often used in relation to our agriculture sector is the fact that Canada’s farmers are getting older, with the average age nation-wide being 56. That means a lot of farm businesses will be changing hands in the next 10 to 15 years as older farmers retire.

At the same time, we know from Census of Agriculture data and from surveys that the Ontario Federation of Agriculture (OFA) has done that the majority of farm businesses don’t have a written succession or transition plan for their farm.

The results of this survey, and many conversations with OFA members across the province indicate to us that there is both a willingness, and a need, for farm families to have these often- challenging conversations around the future of their farm businesses.

I know from first-hand experience how incredibly important it is to give careful thought and planning to the future of a family farm business. My wife and I and our children are dairy farmers near Seaforth in Huron County.

We’re on a farm that we were lucky enough to able to take over from my parents and I know that without a succession plan and their willingness to use their equity in the business to support us, it simply wouldn’t have been possible for us financially to follow our dream of farming.

There are many aspects to succession planning, from making sure family members are involved and consulted to properly addressing legal, financial and tax implications, so getting the help of outside experts like a lawyer and an accountant is an important part of the process.

It can seem very daunting when you first look at it on your own, but I know from my own experience that when you’re working with professionals who are experienced in transition and know what needs to happen, it is not that difficult a process.

It can be hard to know where to get started, though, and that’s why OFA has partnered with Farm Life Financial through its member benefit program to make succession planning support more accessible to our members.

This includes preferred rates on their succession planning services, as well as a complimentary on-farm consultation, access to a regional workshop and an annual check-in for the first two years once a transition plan has been completed.

This winter, we’ve worked together with Farm Life to prepare and deliver a series of farm transition planning workshops for OFA members across Ontario. The Farm Life team brings specific and extensive expertise and experience in farm transition and financial planning and these workshops are an easy way, no obligation way to become introduced to the topic.

These sessions have in particular focused on tax advantages and reaching the goals of both generations while maintaining family harmony. That’s not always easy to achieve, and it was something that was very important to all of us in my own family as we were going through this process.

Approximately 260 people have participated in our in- person sessions to date and over 300 have enrolled for an online workshop that will be held on March 1. There is also a recorded webinar available on the OFA website at https://ofa.on.ca/benefit/farm-life/ for farmers who wish to learn a bit more about succession planning on their own.
​
For more information, contact:
Tyler Brooks
Director of Communications and Stakeholder Relations Ontario Federation of Agriculture
519-821-8883 ext. 218
tyler.brooks@ofa.on.ca

On Wednesday, March 1st, 2023, the Dundas Federation of Agriculture will be hosting our annual general meeting. The meeting will be hosted this year at the Ag Hall behind the Nelson Laprade Centre in Chesterville. Lunch and refreshments will be provided, followed by a tour of Thurler Farms' GetCorp Digestor.

To attend the farm tour, safety shoes or steel-toed boots are required as a safety precaution by the construction manager.

All members are welcome to the event. For those who can't attend in-person, Zoom is also an option. If you would like to attend by Zoom, please reach out to us through our secretary or through the Contact Form on our site to have the Zoom invitation emailed to you. Extra details can be found below.

We look forward to visiting with our fellow members and guests as we look back on 2022, and look ahead to our 80th anniversary being celebrated later this year.

By Drew Spoelstra, Vice President, Ontario Federation of Agriculture

The Ontario Federation of Agriculture (OFA) is a provincial organization that represents Ontario’s farmers on the issues that matter to them.

Most of those issues are provincial in nature, and we work with governments at the municipal and provincial levels to raise awareness and find solution to matters that impact farmers.

When it comes to issues that are national in nature – such as the federal government’s 35% tariff on fertilizer, access to labour or the new national sustainable agriculture strategy currently in development – the OFA turns to its national counterpart, the Canadian Federation of Agriculture (CFA), to take the lead.

Our organization is an active member in the CFA; in fact, we’ll shortly be sending our representatives to participate in the CFA annual meeting in Ottawa, which this year will focus on the theme of Building a Resilient Future for Canadian Agriculture.
​
We’ll debate resolutions submitted by farmers from coast to coast and look at how we can build further resilience in agriculture and the Canadian food system in the context of a changing climate and large-scale supply chain disruptions.

Even though we work closely with the CFA, the OFA also does its own advocacy work at the national level to make sure the voices of our 38,000 farmers are represented. That’s why, for example, the OFA participates in the federal pre-budget consultation process by making submissions to Finance Canada on what we believe is needed to help strengthen our agri-food sector, rural communities and the Canadian economy.

This year, OFA made five recommendations to the federal government:

1. Financial compensation for farmers negatively impacted by federal fertilizer tariffs
Last March, the Canadian government imposed a 35% tariff on imports from Russia, which includes fertilizer. Farmers in Eastern Canada import 85 to 90% of their nitrogen fertilizer from Russa, and the tariffs have added considerable extra costs to food production in an already inflationary environment. In the short-term, we continue to ask that the fertilizer tariff dollars to be reimbursed back to the farmers who paid them, and if that’s not feasible, to establish a way that the funds are returned to the agriculture sector.

Long-term, we must reduce our reliance on Russian fertilizer and need federal government investment in domestic nitrogen capacity, particularly in Eastern Canada so that we minimize future risks to Canada’s food security.

2. Exempt farm businesses from filing requirements for the underused housing tax
The new federal Underused Housing Tax Act requires private corporations and partnerships – which includes farms – who own a residential property to file an Underused Housing Tax return even if they don’t have to pay any tax. Farmers don’t play a meaningful role in Canada’s rental housing market and many will be unaware that they have to file such a return.
With the penalties for failing to file set at exorbitantly high levels, we are asking for an exemption from filing requirements for farm businesses to avoid unnecessary financial hardship for farmers.

3. Improve the Advance Payment Program
The Advance Payment Program is a federal loan guarantee program that gives farmers access to low-interest cash advances. With ongoing increases in the cost of fuel, fertilizer and other farm inputs, we are asking for the 2022 temporary increase in the interest-free loan amount from $100,000 to $250,000 to be made permanent.

We’re also asking for administrative improvements to the program to make it simpler and more efficient, and for 60% of the advance to be available in the fall when farmers make many of their planting purchases for the following year, instead of having to wait until spring to receive the full amount.

4. Funding for clean technology adoption
The Agricultural Clean Technology Program announced by the federal government in 2021 was extremely well received by farmers and funding requests greatly outweighed the amount of money available to help farmers purchase technologies that help reduce on-farm greenhouse gas emissions. We’re asking for renewed funding under this program, which will boost uptake of cleantech solutions by farmers and help the government reach its goals of reducing the carbon impact of agriculture.

5. Broadening the fuel tax exemption for farmers
Farmers depend on fuels like natural gas and propane to heat and cool livestock barns and dry grain crops to keep them from spoiling. These aren’t optional activities and as we currently lack workable alternative energy options, the federal fuel surcharges for the price on carbon have placed a significant financial burden on farmers. Research has shown that the costs to Ontario farmers between now and full implementation of federal carbon pricing structures in 2030 are estimated at over $890 million.

That’s why we strongly recommend that all MPs support Bill C-234 which would expand the definition of farm machinery exempt under the Greenhouse Gas Pollution Pricing Act to include heating and cooling of livestock barns and grain drying activities.

We’re prepared to work closely with the federal government to deliver these necessary investments and programs for the benefit of all Canadians and our national economy. More information is available at ofa.on.ca.

For more information, contact:
Tyler Brooks
Director of Communications and Stakeholder Relations Ontario Federation of Agriculture
519-821-8883 ext. 218
tyler.brooks@ofa.on.ca

By Peggy Brekveld, President, Ontario Federation of Agriculture

It’s that time of year again when many of us turn our attention to numbers and columns. For the Ontario government, it means turning its focus to the next provincial budget. As part of that process, they hold consultations to find out what Ontarians feel is important and to get input into where and how different groups and sectors of the economy think budget funding should be allocated.

As President of the Ontario Federation of Agriculture (OFA), I had the chance to give a presentation to the finance and economic affairs committee earlier this month on behalf of the 38,000 farm businesses our organization represents across this province.

There’s no denying that our sector is an economic powerhouse. We produce more than 200 different farm, food and floral products, generate nearly 750,000 jobs, and contribute more than $47 billion annually to the provincial economy. The vast majority of this activity happens in rural areas of the province, which gives us some unique perspectives, opportunities and challenges.

In fact, this past fall, Ontario’s Minister of Agriculture, Food and Rural Affairs, Lisa Thompson, announced the Grow Ontario Strategy where she challenged our sector to increase the production, consumption and manufacturing of Ontario food as well as boost our annual agri-food exports.

The agri-food industry is a major asset to Ontario and it’s one that can be maximized with strategic investment – in other words, we’re up to the challenge, but support from the provincial government is needed in some very key areas to help us get there.

One of those key areas is physical and social infrastructure, a perennial budget topic.

In rural Ontario, the greatest needs are investments to maintain rural roads, bridges and drainage systems, expanding reliable and affordable broadband internet, upgrading and improving the rural energy grid to enable access to affordable energy, and expanding social infrastructure like local schools and health care. All of these are essential to attracting and keeping people and businesses in rural communities.

We appreciate the provincial government’s commitment to 100% internet coverage in Ontario by 2025, and the ongoing investments that are being made to reach this goal. We also encourage the government to continue its expansion of natural gas lines in rural, northern and remote community across Ontario to ensure all residents have access to affordable and reliable energy.

One of the greatest investments made this past year by government is the Farmer Wellness Initiative, a mental health support program designed specifically for farmers and their families that is making a positive difference for those in need. This is an investment we would like to see continue, and we believe that it would benefit all to expand it to farm employees as well.

Beyond that, we recommend a continued robust strategy to tackle human resource issues in health care. This means leveraging technology and health innovations, supporting the next generation of health care professionals and continuing to address immediate workforce shortages, including through innovative scope of practice and patient care approaches.

One of the greatest problems facing agriculture right now is the critical shortage of veterinarians – particularly those who specialize in large animals – in rural and northern Ontario. The provincial government has already made some positive investments to address the issue and we encourage continued support for the Collaborative Doctor of Veterinary Medicine in Rural and Northern Community Practice Program, the Livestock Veterinary Innovation Initiative, and the Veterinary Assistance Program. Financial incentives for veterinary students and practitioners to practice in rural and remote areas and financial support for clinics would also be of value and help make a difference.

As well, the agri-food sector currently faces unprecedented levels of risk and uncertainty, from inflation and trade and supply chain disruptions to pandemic-related challenges and extreme weather events. The Risk Management Program is a shared premium insurance program between government and industry and increasing the annual investment from $150 million to $250 million would help manage that risk, strengthen food security and support growth in the sector.

And finally, not every way to support the sector involves new spending by government. It’s great to see the government’s recognition of the economic benefits of increasing made-in-Ontario food consumption, and we see a lot of untapped potential in this area. A 10% Ontario grown food procurement policy for government and the broader public sector wouldn’t increase the budget, but would add positive economic impact across the food chain.

Investments such as these will grow Ontario, while moving us towards Farms and Food Forever.

Read OFA’s full pre-budget submission outlining priorities and recommendations for Ontario’s agriculture industry here.
​
For more information, contact:
Tyler Brooks
Director of Communications and Stakeholder Relations
Ontario Federation of Agriculture
519-821-8883 ext. 218
tyler.brooks@ofa.on.ca

By Crispin Colvin, Vice President, Ontario Federation of Agriculture

Ontarians have long been supporters of local food, buying directly from farmers at on-farm markets, visiting the ever-growing number of farmers’ markets in the province, or encouraging local retailers to stock local products.

In recent years, consumers have also increasingly been attracted to agritourism destinations, seeking out pick-your-own farms, corn mazes, sugar bushes and wineries in an effort to rediscover where their food comes from. During the COVID-19 pandemic, these venues were also popular ways for Ontarians and their families to spend time together in safe, outdoor environments.

At the Ontario Federation of Agriculture (OFA), we believe strongly in supporting our members and in helping to promote agriculture and the important role it plays in our lives, our communities and our economy.

A key part of that is building connections with like-minded partners. Last year, OFA partnered with the Ontario Chamber of Commerce and the Tourism Industry Association of Ontario on the 2022 State of the Ontario Tourism Industry Report.

The report provides several recommendations for all three levels of government, covering topics such as the economy, labour, infrastructure, and the future of tourism.

This partnership between OFA and the Chamber of Commerce also plays out at the local level in various parts of the province. I farm near London, Ontario and represent farmers from the municipalities of Middlesex and Lambton on the OFA board.

The local federations of agriculture in my area have both done projects with the local chambers of commerce to support local business and raise awareness of the key role agriculture plays in the local economy, which is great to see.

For the OFA, supporting our members also means finding out first-hand what matters to them. We know that many farmers engage in some level of direct farm marketing and that this has grown significantly during the pandemic, but we wanted to dig a little deeper to get a true sense of agritourism in Ontario from the farmers’ perspectives.

Last fall, OFA conducted a local food and agritourism survey, which attracted 492 respondents who offer or would like to offer some level of agritourism activities. While 28% had been selling directly to consumers for more than 20 years, 37% had started in the last five years.

Over 40% indicated selling value-added products, ranging from baked goods and wool to preserves and prepared meals, and 38% indicated that although they don’t currently offer agritourism experiences on their farms, they would consider doing so.

Overall, we learned that the Ontario farms engaged in direct-to-consumer sales range in size and scope but offer a diverse range of products – and that agritourism is an industry ripe for growth and economic opportunity.

For OFA, both our own survey and the tourism sector report clearly show that we must continue to encourage all levels of government to provide the positive economic environment to help these farm businesses grow and succeed.

This means removing red tape and unnecessary regulatory and financial burdens for farm businesses, investing into rural infrastructure like transportation and high-speed broadband, and promoting career opportunities and improving recruitment and retainment strategies in the sector.

It also means a responsible approach to land use planning that balances the housing needs of our growing population with the need to protect our farmland – after all, without land, there is no food.

At the end of the day, this will help create jobs and strengthen our rural communities, as well as boost local food production for all Ontarians.

These are messages we will continue to share with provincial decision-makers in particular, but we’ve also been reaching out to municipal governments. Together with Farm Fresh Ontario, we recently presented these results to a meeting of municipal representatives, for example, to help them understand what farmers need and how they can support agriculture and farm-focused businesses.

We know that many of our county and regional federations of agriculture already actively promote agriculture and food production locally, and we encourage them to use these findings to consider new projects, whether through the OFA’s Revive Fund or other opportunities.

Agritourism is an important connector between urban and rural Ontario and for many Ontarians, it represents a key way they can support local food, reconnect with nature and learn about where their food comes from. For farmers, it offers new market opportunities for their businesses and being able to help shape consumer perceptions of farming and food production in the 21st century.
​
For more information, contact:
Tyler Brooks
Director of Communications and Stakeholder Relations
Ontario Federation of Agriculture
519-821-8883 ext. 218
tyler.brooks@ofa.on.ca