Alberta
Tech, sustainability key to attracting young talent to an evolving agriculture sector
Canada’s farmers are getting older, and most don’t have a clear succession plan, leaving a big question over who will take over the agriculture sector as a wave of retirements loom.
But industry insiders say an increased focus on technology and sustainability is helping attract younger generations to agriculture, including those coming to the field for the first time.
Young people entering farming from other industries will be key to the sector’s evolution as it grapples with challenges like climate change, said Todd Klink, chief marketing officer at Farm Credit Canada.
“We’re going to need technology, we’re going to need innovation, we’re going to need new ideas and new approaches,” he said. “So when you meet young people that have these new ideas and come from different disciplines, it’s super exciting.”
The demographics of farm operators show an industry in clear need of rejuvenation, even as the barriers to entry can be daunting.
The average age of a Canadian farm operator was 56 in 2021, according to Statistics Canada, and the median age 58, with both those figures rising from the previous census. More than 40 per cent of those operators plan to retire over the next decade, according to a report from the Royal Bank of Canada, Boston Consulting Group Centre for Canada’s Future and Arrell Food Institute at the University of Guelph.
While some will pass the business on to their children — 12 per cent of farms told Statistics Canada they had a succession plan in 2021 — it’s no easy feat to buy or sell a farm, nor to start one from scratch, due to the high costs of land and equipment, as well as the fact that over time, farms have consolidated and therefore gotten bigger on average.
“Unless you’re inheriting or you’re part of a succession plan for an existing farm … it’s nearly impossible to get into it from the ground up,” said Joy Agnew, vice president of research at the Olds College of Agriculture and Technology in Alberta.
Money isn’t the only barrier for attracting the younger generations into agriculture, said Agnew. There are perceptions that farming is hard, dirty work that makes no money, she said — even though agriculture contains a wide range of jobs that don’t look like stereotypical farm work, and most of them don’t involve buying or inheriting a farm.
But as farms adopt more technology such as automated steering and drones, the college has seen increased interest, she said.
“We’re seeing more and more young people in those very niche technological areas like software development or coding or instrumentation or robotics,” said Agnew. “They’re now seeing careers for themselves in the (agriculture) sector.”
Alongside the technological shift, farmers are increasingly adopting sustainable practices, Statistics Canada says, using practices like cover crops and no-till agriculture in efforts to mitigate climate change.
Younger generations are showing more interest in sustainable practices, including ways to maximize yields from smaller farms that are more financially accessible.
Georges Boudreau and his partner Béatrice Cloutier-Hébert established Ferme La Chaleureuse in Carleton-sur-mer, Que. last year. Using less than two acres, the pair deploy a technique called bio-intensive farming, which focuses on maximizing the yield of a small piece of land. Boudreau learned the technique at La Ferme des Quatre-Temps in Hemmingford, Que., which trains young farmers in addition to growing and selling produce.
Boudreau said while there will always be a need for large farms, he sees growing interest in smaller farms that feed their nearby communities.
“That’s what I think is the future. Less industrial farming and more community and smaller farms.”
And in an effort to grow more local food year-round, there’s another trend set to help fill the gap: indoor farming, whether in greenhouses or vertical farms. The total area of greenhouses in Canada grew by more than 23 per cent in 2021 compared with 2016.
Barry Murchie founded GoodLeaf Farms in 2011 after working in food for several decades, including at McCain Foods for 25 years. GoodLeaf’s production of leafy greens and micro greens is currently centred in Guelph, with facilities in Calgary and Montreal set to open this summer.
Murchie said the technology underpinning vertical farming is allowing for a new kind of agriculture that can take place in urban centres. GoodLeaf’s employees come from a range of backgrounds, with average ages in the 30s, and tend to be concerned about the environment and the food supply chain, he said.
“We have people who are sort of early in their careers making decisions to come and join GoodLeaf,” said Murchie. “They want to work in an environment that they feel that what they’re doing is beneficial for the planet.”
Growing public scrutiny of where food comes from is generating more interest in the agriculture industry among younger generations, said Dustin Farr, an instructor of agriculture management and precision agriculture at the Werklund School of Agriculture Technology, which is part of Olds College.
As a result, Farr said he’s seeing more and more students coming to agriculture from increasingly diverse backgrounds. He says that while he’s well aware of the challenges facing the industry, his students leave him feeling optimistic.
“We have some brilliant minds that are coming into agriculture.”
This report by The Canadian Press was first published May 22, 2023.
Rosa Saba, The Canadian Press
Alberta
Premier Smith says Auto Insurance reforms mean lower premiums and better services for Alberta drivers
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.
Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.
The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.
Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”
Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:
- $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
- $125 million to address enrollment growth pressures in Alberta schools.
- $847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
- $240 million more for Seniors, Community and Social Services to support social support programs.
Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.
After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.
Revenue
Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:
- $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
- $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.
Expense
Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.
Surplus cash
After calculations and adjustments, $2.9 billion in surplus cash is forecast.
- $1.4 billion or half will pay debt coming due.
- The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.
Contingency
Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.
- The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.
Debt
Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.
- Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.
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