The B.C. Agriculture Plan

III. Building Innovative and Profitable Family Farm Businesses

Government will help to strengthen the industry by placing a greater emphasis on extension, training, research and advisory services, allowing for a reduced reliance on direct government support programs.

Farming was once a way of life for a large percentage of B.C. families, but increased urbanization and shifting economic realities have changed how farming is regarded. While families continue to choose agriculture as a way of life, it is also clearly a business choice.

Agriculture can be a profitable, fulfilling career for both big and small producers. It’s not just about creating large corporations or small family enterprises – it’s about basic business principles. This is the reality today and the way of the future for a profitable and innovative agriculture sector in a global marketplace, and B.C. farms and agri-food processors can be at the forefront.

Keeping B.C.’s agriculture sector economically viable and sustainable is a key goal of the B.C. Agriculture Plan. We will work closely with all sectors of the B.C. agriculture industry to provide ongoing opportunities for the development of new markets identified at the production, marketing and processing levels.

I’d like to see farming that’s profitable, so that it affords quality of life for the people involved in it. We need to be producing healthy foods and we need to be environmentally friendly and sustainable.

Del Myers
Vice President of the B.C. Association of Farmers’ Markets and President of the B.C. Bison Association

We enjoy farming and feel that it is a worthwhile adventure. We would like to see more people profit in agriculture, and not by way of developing lands and selling quotas. If there was greater profitability in farming itself, possibly less people would be inclined to turn farmland into residential or commercial buildings.

Alex, Kris, David and Chrystal Thomasson, Surrey, B.C.

Management of Business Risk

Strategy 11: Ensure that programs intended to mitigate business risks meet the needs of B.C.’s diverse agriculture sector.

Agricultural production carries inherent risks and uncertainty, which can dramatically affect business viability. B.C. has been actively working with other provinces and the federal government to develop and implement a suite of Business Risk Management (BRM) programs to provide greater ability for farmers to stabilize their incomes. The new programs, including AgriInvest and AgriStability, are simpler and more responsive, predictable and bankable.

The province’s marketing boards and commissions offer an effective means of managing business risk at both the family farm and processing levels by providing for increased market stability. We will continue to support these systems and to work with the supply-managed sectors in their efforts to ensure that provisions are in place at the national level to meet our industry’s needs.

The livestock sectors are currently facing extreme financial pressures due to a combination of unusual market forces (high Canadian dollar, high grain costs, over-supply). While there is no quick fix for these situations, government will work with industry to determine solutions on a sector-by-sector basis.

Sector Strategic Plans

Strategy 12: Implement sector-based strategic plans.

Several commodity organizations have begun developing and implementing sector strategic plans for future growth and development. We will work in partnership with these organizations to implement strategies such as the recently completed B.C. Tree Fruit Strategy. To encourage more sector planning, we will work with the B.C. Agriculture Council and the Investment Agriculture Foundation to identify sectors to be offered funding to develop and implement their own strategic plan in order to work towards sustained profitability for the entire value chain.

B.C. Tree Fruit Industry Strategy

With support from the Ministry of Agriculture and Lands, the B.C. Fruit Growers’ Association initiated a long-term strategic planning process in 2006. The objective was to develop a plan that would help the tree fruit sector to be competitive both in B.C. and in the global marketplace. The industry strategy has resulted in packinghouse restructuring, better quality control of packed product, new labour initiatives, industry participation in the school fruit and vegetable program and Eat BC!, expanded promotion of ambrosia in U.S. markets, continuing replant efforts, the launching of new cherry and apple varieties, and the creation of an industry innovation fund.

Taxation

Strategy 13: Review farm property assessment and Provincial Sales Tax (PST) policy as it applies to agriculture.

A Farm Assessment Review panel will be established to undertake a comprehensive review and analysis of the farm assessment regulations. The review is to ensure the property assessment system is fair, equitable and supports farming in B.C. The process will include consultations with the agriculture community and local government throughout the province. We will continue to review the PST policy on an ongoing basis with a focus on streamlining and simplification.

Action Plan for Small Business

Agriculture producers and food processors are faced with a multitude of regulations from all levels of government. The Government of B.C. has been concerned that small business owners, of which many farmers count themselves, are overburdened by regulations that take time and money away from their businesses. Since 2001, the Government of B.C. has reduced the regulatory burden on small business substantially.

In 2006, the Small Business Roundtable recommended a range of further regulatory reforms, including the creation of the Small Business Lens, to minimize the impact on small businesses when introducing a new regulation or changing an existing regulation. The Province adopted this regulatory reform in February 2007, and now applies the lens to all new or amended regulations to ensure that the impacts on small business are known and addressed. The Canadian Federation of Small Business has recognized B.C. as a leader for these initiatives. At the annual general meeting of the Union of B.C. Municipalities in September 2007, local governments also endorsed a resolution to adopt this lens.

The Ministry of Small Business and Revenue’s Action Plan for Small Business responds to the 2006 Roundtable recommendations, and sets out a comprehensive strategy to support small business growth and development in British Columbia. The action plan will evolve over time as new issues and opportunities are identified through the ongoing Roundtable process. The October 2007 second annual report of the Roundtable outlines further issues, opportunities, and activities that support small business growth. Through these regulatory reform efforts, farmers and food processors will face reduced regulation and a more streamlined regulatory environment in which to operate.

Human Resources and Succession Planning

Strategy 14: Assist the agriculture industry with human resources, succession planning and new entrants.
Source: Statistics Canada

When it comes to labour and succession planning, the agriculture industry is facing challenges similar to other B.C. businesses. Farmers and ranchers must cope with a labour shortage, an aging workforce and the question of what to do with the business when retirement nears.

An aging farm population shows 41 per cent of farmers are at least 55 years old. Interestingly, we have more women involved in agriculture – 36 per cent – compared to the national average. The next 10 years are crucial for B.C.’s farm labour shortage, and will see us competing globally for skilled talent and seasonal farm labour.

We will examine ways of meeting the demand for workers with the requisite skills needed for the agriculture and food sectors and establishing training programs to fill any gaps. We will review apprenticeship opportunities and explore initiatives to increase productivity and retention.

A long-term lease does not give away society’s investment, rather it places it in someone’s hands for a period of time at a cost that would provide incentive for young people to be able to get into the agriculture business, build up their capital base by farming or ranching, until a point when they are ready to build. The advantage of long-term is the ability to borrow capital on that kind of a lease.

John Anderson, Merritt, B.C.

In collaboration with the Farm and Ranch Safety and Health Association and WorkSafeBC, we will ensure effective farm and farm worker safety initiatives are in place.

B.C. must find new ways to transfer knowledge between generations, to bring new entrants into farming and ranching, and to plan for succession in order to invest in our future and the continued economic success of the industry. We will work with the federal government to provide succession advice to agricultural producers, and develop courses in the area of business management and marketing skills.

Fields for Your Future is a new promotional program to build an awareness of agricultural careers among secondary students in B.C. There is a general lack of awareness within B.C. high schools about the diversity of career opportunities available in the agriculture industry, and career counsellors have few resources to give students who may be interested. At the same time, the agriculture industry confirms that they are already having trouble finding qualified people to fill vacant positions. The program focus is on opportunities in the agricultural fields of food, environment, health and economy.

Today’s students have a keen desire to succeed and make a difference in their careers, so the program builds on this enthusiasm by focusing on the following messages:

  • Agriculture is more than just production (though it all starts with production).
  • Agriculture is all around us and impacts each of us every day.
  • A career in agriculture can be exciting, challenging and rewarding.
  • Careers in agriculture make a difference in the world.
  • You don’t need to grow up on a farm to succeed at a career in agriculture.

The Ministry of Agriculture and Lands, youth and community development programs lead the program with support from B.C. 4-H, the B.C. Agriculture in the Classroom Foundation and the B.C. Youth in Agriculture Foundation.

Innovation, Research and Extension

Strategy 15: Strengthen current extension services.
Strategy 16: Establish an industry-led, self-sustaining agri-food and bioproducts innovation centre.

British Columbia’s agriculture and food processing industry must remain innovative and adaptable to varying conditions brought about by climate change, shifting global markets and other events. We will work with agencies and institutions such as colleges, universities, federal research institutions and the private sector to increase innovation, research and non-formal education services known as extension.

We will strengthen the extension services offered through the Ministry of Agriculture and Lands by increasing staff positions and working with other institutions and industry to offer useful and targeted information tools that address the wide-ranging needs of the agriculture sector, including electronic delivery of information through initiatives such as “InfoBasket.”

Innovation is critically important to the future of agriculture. We need to develop a culture of innovation that will lead to improved sector competitiveness, responsiveness, social accountability and environmental sustainability. We will push our partners to implement new initiatives to build on current research efforts underway and support new product developments. We will also continue to work with industry, academia and other agencies to establish an agri-food and bioproducts innovation centre.

Labelling of Genetically Modified Foods

Health Canada and the Canadian Food Inspection Agency (CFIA) share responsibility for food labelling under the federal Food and Drugs Act. The CFIA is responsible for general food labelling policies and regulations, such as protecting consumers from misrepresentation and prescribing basic food labelling and advertising requirements.

Health Canada’s role relates to its mandate to protect human health and safety. Where safety concerns such as potential allergens and compositional or nutritional changes are identified, special labelling is required to alert the public. Health Canada determines what type of information is needed on the label to inform Canadians about these changes in the food.

Food products derived from genetic modification that are determined to be safe by Health Canada are therefore not required to have any special labels. There is however a national standard in place that provides for labelling of these foods, provided that the labelling is truthful and not misleading. The standard, Voluntary Labelling and Advertising of Foods that are and are not Products of Genetic Engineering, was adopted as a National Standard of Canada in April 2004.

 

There are more than 130 wineries in British Columbia, almost double the number of just six years ago, and over 410 grape growers. The B.C. wine industry employs more than 3,000 full- and part-time workers, and by sales, is Canada’s number one producer of premium wine grapes.

Trade and Inter-Governmental Initiatives

Strategy 17: Partner with the federal government and other jurisdictions.

Agriculture is a shared jurisdiction between the federal and provincial governments, so there are many areas where we work closely with Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency and other federal agencies. B.C. will continue to stand up for this province’s interests at the federal level and work to establish strategic alliances that can benefit our agriculture and agri-food industry.

In cooperation with other provinces and the federal government, we will work to ensure that the new national policy framework for agriculture will have the flexibility necessary to meet B.C.’s needs.

Once a land trust purchases farmland and places a covenant on it to secure it in perpetuity, speculative land prices can be removed as a barrier to sustainable farming. Farmers can lease land at affordable agricultural prices and long-term, flexible tenures for sustainable use.

Larry Bomford
Chair
Keating Farm Community Co-op

Forums such as the Pacific North-West Economic Region and the Tri-national Agricultural Accord will continue to be pursued to collaboratively address agriculture issues of common concern. We will also work within the federal appointment process and with councils that have a mandate on agriculture issues to improve B.C.’s representation at the national level.

As our industry relies on both domestic and export markets, clear rules concerning international and inter-provincial trade and investment are important. We continue to seek a predictable multilateral trade agreement that levels the international playing field and are working to enhance B.C.’s position as the gateway to the Asia Pacific for agriculture and food products.

We have a lot of potential feed stocks here in British Columbia for value-added products, from our tree fruit industry and the berry industry and the vegetable processing industry, and we also have a high concentration of organic production, and we could be doing a lot more value added with that.

Jan Langton
National Research Council

We will also work with the federal government to clarify labelling regulations and with the federal Pest Management Regulatory Agency (PMRA) to address the lack of access to products requiring registration under the Pest Control Products Act, particularly lower risk biological products.

 

 

 

Keating Farm Community Cooperative

In June 2005 The Land Conservancy (TLC) purchased Keating Farm, an 11-hectare (27 acre) property in the Cowichan Valley of Vancouver Island. The land is in the Agricultural Land Reserve and has significant agricultural potential, although it had not been in production for nearly 15 years.

TLC’s goal is to restore and protect, in perpetuity, the site’s heritage, agricultural and ecological values. The 1880s heritage farmhouse is being restored and a commercial kitchen will be constructed so the facility can serve as a community events centre and agri-tourism site.

The farmland is being put back into production and is operated by a Keating Farm Community Cooperative. The Cooperative is a legal entity – a business corporation – restricted to 150 members, 5-10 of whom will be producers on the farm, and the remainder of whom will have first option to purchase the products and services from the farm. Members could be individuals, families, businesses, groups of individuals, community organizations, agencies or schools. Members benefit from the satisfaction of having contributed to the protection of farmland in perpetuity and to the security of local food production in the area.

This initiative could also serve as a model to help provide land for young farmers to have a small, successful business without the barrier of today’s expensive land costs.

 

Investment Agriculture Foundation of B.C.: Securing a Future Legacy

The Investment Agriculture Foundation of British Columbia (IAF) is an industry-led, not-for-profit organization, established in 1996 with a mandate to administer federal and provincial industry development programs. These programs assist British Columbia’s producers, processors, agribusiness and rural communities to adapt, diversify and grow. IAF works collaboratively with industry and government to address issues faced by the entire B.C. agriculture and food value chain, and to act on opportunities.

Ongoing funding opportunities are available primarily through the federal Advancing Canadian Agriculture and Agri-Food (ACAAF) program and joint federal/provincial funding. IAF has also served as the trustee or provided administrative support for a number of significant strategic initiatives in recent years – including the Meat Transition Assistance Program, the Livestock Waste Tissue Initiative, Poultry Industry Biosecurity and the Agriculture Environment Initiative.

Federal and provincial funding to IAF over the past 10 years has exceeded $100 million, the careful management of which has resulted in additional interest revenue. The Foundation has thereby formed the basis of a future legacy for the British Columbia agriculture and food sectors.

MAL is committed to working collaboratively with IAF on the continued effective management of existing IAF resources, and to build a secure long-term fund available for the future benefit of the B.C. agriculture and food sectors. This will include investing in the strategic initiatives outlined in the Focus on the Future project, which have now been reinforced through the B.C. Agriculture Plan.

 

Organics

B.C. was the first province to enact provisions to enable the marketing of certified organic products, and remains a leader in growing and producing organic food products.

Since 1993, the Certified Organic Associations of B.C. has been responsible for overseeing the B.C. Certified Organic Program, which is established under the Agri-Food Choice and Quality Act. The organization accredits specific agencies to inspect and certify organic farms and facilities within B.C.

To meet the needs of B.C.’s wide diversity in agricultural production, there are currently 11 certifying bodies in the province. They provide assurance that products marketed as “B.C. certified organic” are indeed produced under stringent organic standards – regardless of whether they are from an expansive grain farm in the Peace Region or a small southern Vancouver Island vegetable farm.

We will continue to examine opportunities for B.C. to take further advantage of the growing demand for organic food products, at the local, domestic and international level.

 

Source: Statistics Canada Census of Agriculture 2006
Source: BC Stats Trip Data

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