Work soon begins on new farmer entry program

Friday, May 9, 2008

by SUSAN MANN

Farm groups have told the ministry that Ontario needs a program for young farmers. In addition, the Liberals promised in the last election that it would develop one. Ontario Ministry of Agriculture, Food and Rural Affairs is now in the process of setting up public consultations. “As soon as we get that schedule put together it will be out there,” says Kelly Synnott, communications adviser to Agriculture Minister Leona Dombrowsky.

It isn’t known what the program will cost, what specific components it will have, when new farmers can start using it or even what a young farmer is. Those will all be part of the consultations, Synnott says.

In March, the Christian Farmers Federation of Ontario’s provincial council approved its own new entrant program and the ministry will be looking at those recommendations as part of its consultations.

CFFO is hoping the government will like some of its ideas and incorporate them into whatever program it develops, says policy adviser Nathan Stevens.

The two key items CFFO would like to see incorporated into the ministry’s program are the mentoring and business management course requirements for new entrants and reduced loan rates.

Today it costs a minimum of $1 million to get into farming, says Stayner-area broiler chicken and turkey farmer Ted van den Hurk, a director on CFFO’s council. For someone who hasn’t farmed before that’s a daunting figure.

The latest Census figures shows the average age of farmers in Ontario as 53. “During the next 10 years we’ll start losing the most experienced people and we’re not bringing anybody in at the bottom end right now,” he says.

When van den Hurk returned to farming about 10 years ago (he had left farming several years before that to become a church worker in Africa), he figured he could still make a profitable living. But that isn’t the case now.

Quota prices have doubled in 10 years, while the profit per kilogram of poultry meat hasn’t increased in 25 years, he says.

George Brinkman, University of Guelph emeritus professor agrees that the expenses for someone entering the industry are prohibitive. He suggests land prices alone are so expensive that new entrants can’t make money regardless of what type of new entrant program is designed.

CFFO’s recommendations include special loans at reduced rates for 10 years, incentives for retiring farmers to sell their land - excluding the residential lot - at lower prices, quota loans for those getting into supply-managed industries, exemption from the land transfer tax for new entrants plus specific requirements for new entrants to take a business management course and either enter a mentoring program or be in a management group.

The mentoring provisions give new farmers an opportunity to talk to an experienced farmer “who’s been there and can understand the marketplace and can help you through rough times,” he notes.

Despite high costs and low profits, young people are still getting into farming. Dave Devries, 25, runs a 200-sow farrow-to-finish operation near Drayton. Farming is something he’s always wanted to do.

When his dad died 10 years ago his uncle leased their farm for five years and then Devries took it back five years ago. He just finished taking over all the shares from his mother this January.

But without help from his family, Devries says it’s not likely he’d be able to start farming. “It takes way too much money.”

In its recommendations CFFO doesn’t distinguish between someone who hasn’t farmed before and someone coming from a farming family. It also didn’t define a young farmer. The recommendations would apply to any new entrant regardless of their age. BF