Better Farming - October 2016

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16 Farm News First > Better Farming October 2016
For many types of farming, in
addition to land, buildings and
equipment, there is the added
price of marketing quota. The
2011 Census shows over 16,000
of Canada’s 140,000 farms hold
quota and, at a total value of $33
billion, transferring quota to a new
generation represents potentially
huge financial barriers.
“As a new farmer, the cost can
be considerable,” said Michael
Edmonds, Chicken Farmers of
Ontario director, communications
and government relations. Like
most marketing boards, Chicken
Farmers looks for ways to ease the
burden of transition.
To be part of the chicken
marketing system, a farmer must
own 14,000 units of quota, a
value of about $1.75 million.
Chicken Farmers’ new entrant
program aims to offset that cost by
loaning 10,000 units of quota to
beginning farmers who have
already purchased 4,000 units of
quota. Farmers have 15 years to
return the loaned quota and buy
replacement quota on the open
market. Chicken Farmers retires
the surrendered quota.
“We’re reducing barriers to entry
while maintaining the integrity of
the system,” said Edmonds.
The marketing board’s specialty
breed, artisanal and family food
farmer programs don’t require
quota. Instead, Chicken Farmers
limits the number of birds allowed
in each.
Under the family food farmer
program, for example, farmers can
raise up to 300 birds for them-
selves and small local markets. The
artisanal program allows farmers
who supply a local or regional
market to raise 3,000 birds.
“These have been very effective
in drawing people into the com-
mercial side of the business,”
Edmonds said.
He said he is very encouraged
by participation in the artisanal
program and noted more than 100
farmers had enrolled in the little
over a year since its introduction.
He predicts some of these growers
will step up to the commercial side
of the business over time.
“It gives them an entrepreneur-
ial gateway into commercial
farming,” he said.
Quota may be a serious initial
barrier, but, “once a young farmer
becomes part of the supply
management system, they be-
come part of the whole supply
chain,” Edmonds said. “Supply
management leads to a stable
market that some farmers find
very attractive.” BF
Solutions to the cost of quota
GENERATIONALTRANSITION