Nearly 70% of Canada’s farmers plan to retire in 10 years, says the Canadian Federation of Independent Business (CFIB), which is urging the federal government to adopt tax and regulatory policies designed to attract the next generation of farmers.
Richmond farmer Bill Zylmans, 55, is one of the Canadian farmers set to retire in 10 years. None of his children plan to take over the family farm.
“We’re in the last 10 years of farming and no followers,” he told Business in Vancouver. “It’s just too expensive for a young farmer to get going in this business.”
Federal and provincial governments are finalizing Growing Forward 2, an agriculture policy for Canada that is set to take effect in April, 2013.
The CFIB has drafted its own set of recommendations, called Fostering Ag Competitiveness, and is hoping the new policies will include tax incentives and regulatory polices that will encourage a new crop of farmers to take the place of those set to retire.
“As this succession train is coming down the track, fostering agricultural competitiveness has never been more important,” said Marilyn Braun-Pollon, CFIB’s vice-president for agri-business. “And while we recognize there is little governments can do to solve many of the global market issues facing farmers, they can certainly take steps to improve the regulatory and tax environment to attract new entrepreneurs to the [agricultural] sector.
“CFIB hopes Growing Forward 2 results in farmer-friendly policies that foster entrepreneurship, growth, diversification and continued production of high-quality food for consumers.”
Zylmans said he’s not sure what governments can do to encourage young people to take up farming, as there are so many disincentives.
However, he said one thing the federal government can do is stop whittling away at existing programs, like an agricultural stability fund that tops up farmers’ income to 75% of their five-year average in years when their income drops dramatically, either due to drastic commodity price drops or natural disasters that wipe out crops.
“Now they’re thinking about going down to 50% – that’s totally unacceptable,” Zylmans said. “Then I might as well pack it in.”
