By Mark Wales, President, Ontario Federation of Agriculture (OFA)
“Ontario agriculture is big business.” It’s a statement the Ontario Federation of Agriculture (OFA) makes often to impart the importance of agriculture to Ontario’s economy. Now, the OFA has solid, current numbers to back it up. In June 2013, the OFA commissioned an update of a study by renowned economist Dr. John Groenewegen of Guelph-based JRG Consulting Group. The study, titled Economic Contribution of the Ontario Farm Sector, uses the most current data about Ontario farming from Statistics Canada – and the numbers are more impressive than ever. They reveal that agriculture truly is a driving force behind provincial job creation, a stable tax base and thriving rural communities. As well, agriculture is a major contributor to Ontario’s food and beverage processing sector. Ontario’s Premier and Minister of Agriculture and Food, Kathleen Wynne has recently issued a challenge to double growth and jobs in Ontario’s agri-food sector. According to this study, Ontario agriculture is well on its way. Agriculture supports nearly 158,000 jobs with $8.1 billion in wages and salaries. More than 75,000 of these jobs are attributed directly to primary agriculture and to suppliers where farm operators purchase goods and services such as feed, equipment and fuel. The remaining 82,000 jobs are produced in the overall provincial economy as suppliers restock supplies and workers spend their earnings on consumer goods and services. With that strength in sustained full-time employment comes a stable tax base. Recent data shows the farm sector generates tax revenues at all three levels of government, with the provincial government collecting $1.4 billion and the municipal level collecting $400 million. The next time OFA members meet with their MPPs, they can also inform them that the farm sector is a significant driving force behind the province’s rural economy, accounting for 10% of the jobs in rural Ontario. The tax dollars generated by Ontario’s farm sector help to create and maintain the government services and infrastructure necessary to support thriving rural communities such as hospitals, schools and transportation. Ontario’s farm sector is proud to provide the foundation for another job-creator – Ontario’s food and beverage processing sector. Processors buy more than 70% of Ontario farm products. They also directly employ more than 91,000 workers across Ontario and support an additional 193,000 secondary jobs in various areas of the economy. OFA encourages our members to proudly boast the sound economic benefits of Ontario agriculture to our provincial and municipal decision-makers. Ontario farmers have a good news story to tell with impressive economic numbers. With meaningful investment in agriculture and rural Ontario, there are additional possibilities for securing profitable and sustainable farms. A detailed copy of the study is available upon request from the OFA at 519-821-8883. -30- For more information contact: Mark Wales President Ontario Federation of Agriculture 519-773-6706 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883 To obtain a copy of the study please contact the OFA at 519-821-8883
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