Alberta
High costs putting farming out of reach for young people, affecting all Canadians
MONTREAL — When Myriam Landry started raising goats for their meat in 2018, she started small — because she had to.
She opened Chèvrerie aux Volets Verts, in St-Esprit, Que., with two goats; she couldn’t afford a large herd and chose animals small enough that she could handle on her own while pregnant with her third child.
“I should have started bigger … but then I would have needed more money, which I didn’t have,” Landry, 33, said in a recent interview from her farm 50 kilometres north of Montreal.
“It’s really hard for young people to start … I don’t even have land, I don’t have tractors, even my goats (I paid for) on loans.”
The rising cost of land is making it harder than ever for young farmers to enter the business. And those barriers come at a time when a growing number of older farmers are planning to leave the industry. Organizations promoting farm succession worry that if young people are unable to enter the industry, only the largest companies will endure, reducing the diversity of crops and livestock and widening the gap between Canadians and their sources of food.
“The main challenge right now is really the cost of agricultural land,” said Benoît Curé, co-ordinator of ARTERRE, a program that pairs aspiring farmers with landowners and farmers planning to retire.
Curé said multiple factors are contributing to rising prices, including real estate speculation — especially near Montreal suburbs — and strong competition for the best soil in a province where only around two per cent of the land is suitable for farming.
Last year, the price of agricultural land rose by 10 per cent, which isn’t unusual, he said in a recent interview. “Over the last 10 years, we’ve had annual increases of about six to 10 per cent.” The average dairy farm in Quebec is now valued at almost $5 million, he said, almost double what it was in 2011.
With 20 per cent down payments usually expected for farm purchases, “you have to almost be a millionaire before starting your agricultural business,” Curé said. If young people can’t afford to get into farming, then most rural communities risk being left with two or three large farms, he lamented.
Landry, like more than half of the aspiring farmers who have worked with ARTERRE, is renting her space. Her small operation is located on a former dairy farm that’s now used for hay and cereal crops. Her farm has now grown to 40 female goats and a handful of males for breeding. There’s enough space in her barn for 60 females, she said, but she has enough demand to support 100.
And while starting small has allowed her to open a farm, it has also come with its own challenges. Goat meat, she said, is uncommon in Quebec, and financial institutions are hesitant to lend to money for an operation they aren’t familiar with.
Lenders, she said, “don’t want to finance it, because they don’t know it, and that makes it really hard.”
Farming has always been a capital-intensive industry — with high costs for land, equipment and inputs — but prices across Canada have risen above the revenue that can be generated from that land, said Jean-Philippe Gervais, the chief economist of Farm Credit Canada, a Crown corporation that lends to farmers.
“The relationship between the price of the land and the revenue that can be expected from the land — that ratio is the highest we’ve ever seen,” Gervais said in a recent interview. “So we’re really at prices that are the highest we’ve ever seen, not just in absolute value in dollars per hectare, but also relative to what can be generated in income.”
It’s now rare for farmers to turn a profit from land they buy just by farming it, he said, adding that most farmers only make their money back when they sell. Large, established farms can fund the purchase of more land from the revenue generated on land that’s already been paid for, he added.
But even large farms are challenged by high costs. A survey of more than 3,600 farmers released last month by Quebec’s farmers association found that 11 per cent are thinking about closing over the coming year. The Union des producteurs agricoles found that costs on Quebec farms rose by an average of 17.3 per cent in 2022 while revenues rose by an average of 14.7 per cent.
A report released in early April by RBC found that 40 per cent of Canadian farm operators planned to retire over the next decade and that 66 per cent didn’t have a succession plan.
Julie Bissonnette, the president of an organization that represents young Quebec farmers and promotes farm succession, says there are many young people interested in agriculture.
“Sometimes you hear there’s no one to take over, but it’s not true, there are a lot, but we need to make sure they’re able to set up,” Bissonnette, with the Fédération de la relève agricole du Québec, said in a recent interview. “It’s so much money.”
Urban sprawl and the influx of people moving to rural areas to work remotely is putting increased pressure on Quebec’s arable land, Bissonnette said.
Landry, meanwhile, said she’d like to see more small-time farmers because they tend to build close relationships with local residents.
“We need to reconnect the public to what they do three times a day, which is eat,” she said. “Know where your food is coming from. If you can’t grow it yourself, find someone who does it the way you would do it.”
This report by The Canadian Press was first published May 7, 2023.
Jacob Serebrin, The Canadian Press
From the Fraser Institute
By Tegan Hill and Nathaniel Li
Albertans contributed $53.6 billion more to CPP then retirees in Alberta received from it from 1981 to 2022
Albertans’ net contribution to the Canada Pension Plan —meaning the amount Albertans paid into the program over and above what retirees in Alberta
received in CPP payments—was more than six times as much as any other province at $53.6 billion from 1981 to 2022, finds a new report published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Albertan workers have been helping to fund the retirement of Canadians from coast to coast for decades, and Canadians ought to know that without Alberta, the Canada Pension Plan would look much different,” said Tegan Hill, director of Alberta policy at the Fraser Institute and co-author of Understanding Alberta’s Role in National Programs, Including the Canada Pension Plan.
From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of the total CPP premiums paid—Canada’s compulsory, government- operated retirement pension plan—while retirees in the province received only 10.0 per cent of the payments. Alberta’s net contribution over that period was $53.6 billion.
Crucially, only residents in two provinces—Alberta and British Columbia—paid more into the CPP than retirees in those provinces received in benefits, and Alberta’s contribution was six times greater than BC’s.
The reason Albertans have paid such an outsized contribution to federal and national programs, including the CPP, in recent years is because of the province’s relatively high rates of employment, higher average incomes, and younger population.
As such, if Alberta withdrew from the CPP, Alberta workers could expect to receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians, while the payroll tax would likely have to increase for the rest of the country (excluding Quebec) to maintain the same benefits.
“Given current demographic projections, immigration patterns, and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into it than Albertan retirees get back from it,” Hill said.
Understanding Alberta’s Role in National Programs, Including the Canada Pension Plan
- Understanding Alberta’s role in national income transfers and other important programs is crucial to informing the broader debate around Alberta’s possible withdrawal from the Canada Pension Plan (CPP).
- Due to Alberta’s relatively high rates of employment, higher average incomes, and younger population, Albertans contribute significantly more to federal revenues than they receive back in federal spending.
- From 1981 to 2022, Alberta workers contributed 14.4 percent (on average) of the total CPP premiums paid while retirees in the province received only 10.0 percent of the payments. Albertans net contribution was $53.6 billion over the period—approximately six times greater than British Columbia’s net contribution (the only other net contributor).
- Given current demographic projections, immigration patterns, and Alberta’s long history of leading the provinces in economic growth and income levels, Alberta’s central role in funding national programs is unlikely to change in the foreseeable future.
- Due to Albertans’ disproportionate net contribution to the CPP, the current base CPP contribution rate would likely have to increase to remain sustainable if Alberta withdrew from the plan. Similarly, Alberta’s stand-alone rate would be lower than the current CPP rate.
Tegan Hill
Director, Alberta Policy, Fraser Institute
Nathaniel Li
Senior Economist, Fraser Institute
Alberta
Alberta Institute urging Premier Smith to follow Saskatchewan and drop Industrial Carbon Tax
From the Alberta Institute
Axe Alberta’s Industrial Carbon Tax
Aside from tariffs, carbon taxes have been the key topic of the election campaign so far, with Mark Carney announcing that the Liberals would copy the Conservatives’ long-standing policy to axe the tax – but with a big caveat.
You see, it’s misleading to talk about the carbon tax as if it were a single policy.
In fact, that’s what the Liberals would like you to think because it helps them hide all the other carbon taxes they’ve forced on Canadians and on the Provinces.
Broadly speaking, there are actually four types of carbon taxes in place in Canada:
- A federal consumer carbon tax
- A federal industrial carbon tax
- Various provincial consumer carbon taxes
- Various provincial industrial carbon taxes
Alberta was actually the first jurisdiction anywhere in North America to introduce a carbon tax in 2007, when Premier Ed Stelmach introduced a provincial industrial carbon tax.
Then, as we all know, the Alberta NDP introduced a provincial consumer carbon tax in 2017.
The provincial consumer carbon tax was short-lived, as the UCP repealed it in 2019.
But, unfortunately, the UCP failed to repeal the provincial industrial carbon tax at the same time.
Worse, by then, the federal Liberals had introduced a federal consumer carbon tax and a federal industrial carbon tax as well!
Flash forward to 2025, and the political calculus has changed dramatically.
Mark Carney might only be promising to get rid of the federal consumer carbon tax, but Pierre Poilievre is promising to get rid of both the federal consumer carbon tax and the federal industrial carbon tax.
This is a clear opportunity, and yesterday, Scott Moe jumped on it.
He announced that Saskatchewan will also be repealing its provincial industrial carbon tax.
Saskatchewan never had a provincial consumer carbon tax, which means that, within just a few weeks, people in Saskatchewan could be paying ZERO carbon tax of ANY kind.
Alberta needs to follow Saskatchewan’s lead.
The Alberta government should immediately repeal Alberta’s provincial industrial carbon tax.
There’s no excuse for our provincial government to continue burdening our industries with unnecessary costs that hurt competitiveness and deter investment.
These taxes make it harder for businesses to thrive, grow, and create jobs, especially when other provinces are taking action to eliminate similar policies.
Premier Danielle Smith must act now and eliminate the provincial industrial carbon tax in Alberta.
If you agree, please sign our petition calling on the Alberta government to Axe Alberta’s Industrial Carbon Tax today:
After you’ve signed, please send the petition to your friends, family, and wider network, so that every Albertan can have their voice heard!
– The Alberta Institute Team
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