Off-farm employment for Canadian agriculture producers has reached a new high -- and it’s not confined to small, part-time producers anymore.

A new report from Statistics Canada says nearly half of the 327,055 producers who took part in its 2006 census reported working off their farm. That’s a four per cent increase since the 2001 census.

The biggest change was in operators of farms with gross revenues of more than $250,000. A full one-quarter of them now report off-farm income, compared to less than 20 per cent in 2001.

Working off-farm remains particularly prevalent in the small-farm sector (with gross revenues under $10,000), where 60 per cent say they held down other jobs. That figure has stayed the same over the past five years.

But the future of off-farm work is highly uncertain.

Given the drastic economic downturn since the 2006 census and the failure of the manufacturing sector, questions are emerging about where off-farm jobs will be found. And will the nature of those jobs match the profile of the traditional job seeker? Producers with university degrees, young growers and male producers are the most likely to work off farm -- if they can find anyone willing to hire them.

“The performance of rural labour markets is an important factor in the economic well-being of farm operators,” says Statistics Canada. “The proximity to urban centres was not associated with the probability of off-farm work participation.”

Indeed, rural prosperity has been a key to keeping producers employed off-farm. The report says growers who lived in communities experiencing rapid employment growth between 1991 and 2001 were more likely to be engaged in off-farm work. Producers who lived in communities with low employment growth were appreciably less likely to work off-farm than similar operators living in a high employment-growth community.

Least likely to work off-farm were dairy producers, those with incorporated farms and sole farm owners.

American exports of agricultural-related machinery to Canada jumped 31 per cent in 2008, a banner year for U.S. manufacturers that saw Canadian purchases of American equipment total $2.8 billion.

In a report last week that appeared to fly in the face of equipment company layoffs and the sour economy, the U.S.-based Association of Equipment Manufacturers reported global farm machinery exports from the United States totalled $10.4 billion in 2008.

That was up 26 per cent overall from the previous year.

However, Charlie O’Brien, AEM vice president of agricultural services, says the cheery report doesn’t reflect new economic realities.

“Export growth was strongest in the first quarter of the year and then dropped substantially by the third quarter,” he says. “The farming sector has not been immune to the global economic downturn, with continued uncertain conditions around the world, and in some instances staggering economic reversals of recent positive trends in certain world regions.”

Nonetheless, sales were huge in 2008, as companies such as Deere and Company -- which axed 800 jobs in Welland, Ont., when it closed its manufacturing facility there last year -- continued to blaze ahead. In Deere’s case, earnings records were realized for the fifth year in a row, with sales nearly doubling and net income topping $2 billion for the first time.

Canada contributed its fair share to American equipment manufacturers’ bottom line. It was the second biggest market, following Europe, where U.S. exports increased 23 per cent and totalled $4 billion in 2008.

The biggest jump was in exports to Australia/Oceania, which grew almost 60 per cent to total $794 million.

South America’s percentage increase wasn’t as large -- a nearly 30 per cent gain. But its overall total delivery of $888 million worth of equipment was significant.

Other gains were realized in Asia (21 per cent, $793 million), Central America (13 per cent, $813 million) and Africa (21 per cent, $299 million).

So far in 2009, AEM’s O’Brien warnings are holding true in Canada, for the most part. In January, overall tractor sales were down about four per cent. Two-wheel drive tractor sales led the way down with declines of more than eight per cent over a year ago, with under 100-horsepower tractors showing the worst performance.

However, there were some bright spots as well. Canadian dealers sold 75 four-wheel-drive tractors this January, compared to just 25 during the same month last year. As well, they sold 48 self-propelled combines, six more than January 2008. Reports for February will be out shortly.

The AEM trade group consolidates U.S. Commerce Department data for off-road equipment with other sources into quarterly export trend reports.

A new report released in British Columbia shows the community of Abbotsford is sustained by a stable local economy based on agriculture.

The report shows agriculture in the town provides 11,300 full-time jobs with one in every four private sector jobs being supported by the agriculture sector. The farming community also generates $1.8 billion in annual expenditures within the local economy.

Farm-based jobs, including wages paid to family members, average over $28,000 per year and agri-business jobs average $49,000 per year. The farm workforce has changed from what is often perceived as low paid seasonal work to more full-time work at competitive wage rates, the study found.

With $557 million in farm gate sales, Abbotsford has the highest in British Columbia and the largest farm gate sales per hectare in Canada. The added value of processing food grown in Abbotsford is approximately $128 million.

The survey was conducted by the provincial government and the Abbotsford Chamber of Commerce to estimate the economic impact of agriculture on B.C.’s fifth largest community which is the hub of agri-business in the Fraser Valley.

The full report is available on the Ministry of Agriculture and Lands website at http://www.agf.gov.bc.ca/resmgmt/sf/Publications.htm#other or on the Abbotsford Chamber of Commerce website at http://www.abbotsfordchamber.com/.

A large scale, fully-integrated corporate farm is in the works for First Nations farmland in Canada’s Prairie provinces.

Sprott Resource Corp. has launched One Earth Farms Corp. Sprott will invest $27.5 million in One Earth Farms to establish operations, fund working capital and support its initial growth.

"We intend to build a long-term profitable agricultural business in partnership with the First Nations, which will improve the management and environmental sustainability of First Nations farmland as well as benefit their people through increased revenue and job opportunities,” says Kevin Bambrough, Sprott president and CEO.

Farming will be done in a hub-and-spoke system designed to plant crops and ranch lands in annual increments, beginning with an initial minimum target of 50,000 acres in the first year of operations.

One Earth Farms intends to do job training for First Nations people, which they say will help train the next generation of agriculture producers and provide One Earth Farms with a pool of qualified employees for the future. It will also further strengthen the relationship between One Earth Farms and the First Nations.

“One Earth Farms has received enthusiastic support from First Nations as our business model generates significant value for First Nations through the creation of employment for their people, best in class land management practices, and the development of agri-industry joint-venture initiatives," says Blaine Favel, a director with One Earth Farms.

Some farm groups are calling the recent announcement of support for flooded Manitoba livestock producers a blueprint for future disaster assistance.

Through the AgriRecovery pillar of the Growing Forward framework, the federal and provincial governments have agreed to provide three levels of assistance for ranchers who experienced severe flooding in Manitoba's Interlake and Westlake areas. 

In summer 2008, many communities in the region experienced more than 400 millimetres (about 16 inches) of precipitation. The natural disaster drowned out hay and pastureland, leaving producers without feed for their livestock and severely damaged forage crops. 

With the help of the provincial and national cattle industries, the government designed programs to help producers sustain and rebuild their operations after the devastating effects of the 2008 excessive rainfall. The programs will be cost shared on the traditional 60/40 per cent arrangement.

The Manitoba Livestock Feed Assistance Program will provide $70 per head for cattle breeding stock. The money is to offset the additional cost producers faced having to access additional feed for their herds.

The Manitoba Forage Restoration Program will provide $40 per acre for re-seeding pasture and forage lands damaged by the flooding.

The third part of the announcement was the federal government’s decision to allow tax deferrals to producers who were forced to sell animals. Traditionally this has been only offered to drought affected areas where ranchers were forced to sell cattle due to a lack of feed.

“It takes hard work for producers to get back on their feet after a flood and this government is standing with them as they get back on track,” Agriculture Minister Gerry Ritz says in a news release. “We are giving Canadian producers the breathing room they need on their tax bills to help rebuild their herds after flooding.”

Producer groups have expressed their appreciation for the government’s action.

“This reveals the leadership and commitment of our two agriculture ministers towards our industry and our producers who faced these devastating conditions last summer. This will go a long way to help these farm families and their communities recover,” says Joe Bouchard, president of Manitoba Cattle Producers Association.

The Canadian Cattlemen’s Association believes this provides a template for future disasters experienced by the agriculture industry.

Approximately 850 cattle producers were affected by the flooding. The funding delivered through these programs is expected to reach around $22 million.

Efforts of Quebec producers to reduce their environmental impacts are paying off, a major survey shows.

“We’ve taken some giant steps in our use of fertilizers and efforts to protect our waterways,” says Christian Lacasse, president of Quebec’s Union des producteurs agricole.

The survey, conducted in 2007 with funding from the UPA and the federal and provincial governments, canvassed more than 4,000 agricultural producers on their methods and use of various fertilizers, pesticides and other materials.  

One of the most notable findings in the report is producers’ annual reduction of 29,000 tonnes of phosphorous over the last 10 years.

That’s equal to 2,500 truckloads of fertilizer, notes Laurent Lessard, Quebec agricultural minister. “We’ve come a long way, but we can still do more.”

Lacasse, who is also a dairy producer, credits Quebec producers for accepting and supporting Quebec’s stringent environmental laws.

He says the majority of the province’s 50,000 farming operations have altered their production methods, or adopted new ones, that improve waste management, water run-off and improve protection of waterways running through or near their properties.

Those efforts, Lacasse says, have improved both the quality and quantity of agricultural production in the province.  However, he says pesticide use must be monitored.

“We need to give ourselves a realistic reduction target,” Lacasse says. He notes, for example, that global warming has introduced some new crop pests in Quebec in recent years, such as soy fleas.

“It’s a big challenge to not always think about a chemical solution,” he says. “We need to develop and use products that have less impact on the environment.”

Production at the Maple Leaf plant in Brandon, Man. is back to normal after a slow-down in February.

Freezing rain in the province closed major highways and disrupted scheduled livestock pick-ups from farms and deliveries to processors.

Leonard Esau, a hog producer in southeastern Manitoba and a director for Manitoba Pork, says during the February storm his transport company cancelled a scheduled pick-up.

With tight production times at possessors, where strict delivery schedules rule, a storm can set production back by days.

“We’re not allowed to deliver early or late,” he says. “This type of weather really messes up their schedule.” Once the weather and road conditions improve, an extra shift can usually clear up most of the backlog.

The disruption costs incurred by processors is tempered slightly by ensuring hogs arrive in top condition at the plant. Cancelling transports also falls within the province’s pork handling and transportation guide.

It indicates the maximum transport time for market hogs is 36 hours, but stipulates minimum time between feed, water and rest is five hours. Those stipulations can’t be met when a truck is delayed due to impassable highways.

Esau says his farm, one of the furthest from the Maple Leaf plant, is only three hours away.

That proximity to the processing plant makes it possible for the company that hauls Esau’s hogs to make last-minute decisions on whether or not to pick up his hogs.

“They keep a sharp lookout for highway closures and other weather conditions that could impact the hogs,” Esau says. “The entire load of livestock will suffer if they’re on the road too long, and the trucking company works with us to ensure the hogs are kept safe.”

The Canadian sheep industry is seeing a growing appetite for lamb, but producers aren’t keeping pace.

“There’s a large market for Canadian lamb, whether it be at the fine dining restaurants or for an urban immigrant population,” says Jennifer MacTavish, executive director of the Canadian Sheep Federation.

“Between 2005 and 2007, lamb consumption in Canada grew by 10 per cent, but the number of processed lamb dropped by eight per cent.”

MacTavish says recent Statistics Canada data shows that since 2004, the Canadian sheep herd has lost 100,000 breeding ewes. To fill the void in the market, more Australian and New Zealand lamb is being imported into Canada.

“Some people would view the imports as competition while others tend to view it as a compliment, as it keeps lamb in front of the Canadian producer when we can’t,” MacTavish says. “There’s an awful lot of room to grow.”

She says the industry has room for expansion and growth without hindering another protein group in Canada.

The federation participated in a study by the George Morris Centre on consumers’ meat purchasing habits. The Canadian Pork Council, Ontario Veal Association and the Chicken Farmers of Canada are also involved. Results will be released this summer.

“This is part of a larger mission for the Canadian sheep industry. We are trying to increase the production of Canadian lamb as we are always struggling with our share of the market,” MacTavish says. “So what we hope this will do is tie the consumer and the producer together.”

She says that by understanding Canadians lamb consumption habits, industry can help producers fill the demand.

Barley could be on its way to becoming a functional food.

Dr. Nancy Ames, a research scientist with Agriculture and Agri-Food Canada, has filed a health claim for barley with Health Canada stating that barley contains beta glucan and soluable fibre, helpful for regulating blood cholesterol and possibly reducing the incidents of cardio-vascular disease.

Nikki Jeffrey of the Alberta Barley Commission says if the claim is approved, labels for products containing the required dose of three grams of barley per serving will be able to describe barley as a functional food.

The commission and other industry groups have worked with AAFC during the research. The goal is to open new markets in human food products and take advantage of growing consumer interest in the health benefits of whole grains.

Jeffrey says Alberta currently grows about 50 per cent of Canada’s barley, but less than one per cent of that production is used for human consumption.

Gaining access to this untapped market could have direct benefits to producers.

“It opens up whole new markets and demands for barley and would give farmers more choices when selling their crops,” Jeffrey says. She notes producers could have the option of contracting directly with companies looking for a steady supply of barley.

In 2005, the United States Food and Drug Administration approved a health claim for barley products such as whole barley and barley flakes.

Although the U.S. health claim can only be used in that country, it has helped promote the health benefits of barley in Canada where U.S. food products are advertised and sold. Jeffrey says although it is uncommon for health claim submissions to be made in Canada, Health Canada is more likely to approve such a claim if it has been approved in another country.

If the submission is successful, an educational campaign aimed at manufacturers and consumers will follow. For more information on the health claim, check the ABC website at www.albertabarley.com.

Agriculture Canada has revised its January projection downwards for what Canadian producers will seed to all wheat and durum in spring 2009. At the same time, their record canola area forecast in January was bumped even higher.

The following table represents Agriculture and Agri-Food Canada's 2009-10 seeding estimate. Figures are in million acres. Source: Agriculture and Agri-Food Canada.

                     ---Seeded Area -- 

                  Ag Can     Ag Can     StatsCan

                  2009/10    2009/10    2008/09    

Crop              March 6    January    

All Wheat         23.227     23.895     25.009     

Durum              4.942      5.609      6.030     

Barley             9.353      9.674      9.357

Corn               3.084      3.109      2.975

Oats               4.243      4.374      4.345     

Rye                0.410      0.410      0.340     

Canola            17.235     16.803     16.159

Flaxseed           1.693      1.556      1.560 

Soybeans           3.212      3.212      2.954     

Dry Peas           3.707      3.706      3.996     

Lentils            1.915      1.804      1.611     

Mustard Seed       0.519      0.519      0.479     

Sunflower Seed     0.178      0.178      0.170     

Canary Seed        0.445      0.445      0.415     

Chick Peas         0.143      0.210      0.131     

Summerfallow       6.042      6.042      6.069

In its second look at what Canadian producers were planning to put into the ground during the 2009-10 (August to July) crop year, the market analysis branch pegged seeded area to all wheat at 23.237 million acres with durum accounting for 4.942 million acres of the amount.

All wheat area in January was put at 23.895 million acres, while durum was initially estimated at 5.609 million acres. Producers in Canada seeded 25.009 million acres to all wheat in the spring of 2008 with 6.030 million consisting of durum.

Seeded area to canola, meanwhile, is expected to jump to a record 17.235 million acres in spring 2009. This surpasses the January forecast of a record 16.802 million acres and compares with the record 16.159 million seeded in 2008.

Based solely on conversations with growers across the Prairies, I personally get the impression that Ag Canada has the trends in wheat and canola acres backwards.

Return outlooks for new-crop No. 1 Canadian Western Red Spring 13.5 wheat currently suggest $6.20 to $6.50 per bushel delivered to the elevator (depending on location). New-crop canola bids are slipping to only $8.50 a bushel territory. I fail to see the incentive to boost canola acres in 2009, at least based on these pricing incentives.

While the wheat PROs are certainly not screaming profitability to the grower, compared to a deteriorating situation in new crop canola, I think wheat acreage rises at the expense of canola.

Ag Canada projects acreage seeded to barley declining slightly to 9.353 million acres, which would compare with 9.674 million projected in January. In 2008, seeded area to barley totalled 9.357 million acres.

Oats area was also forecast to be lower, with the latest estimate coming in at 4.243 million acres. In January, oats area had been pegged at 4.374 million acres while in 2008 area totalled 4.345 million acres.

The new-crop oat bids of today makes me wonder whether 2009 Canadian oat acres will fall much more drastically than that. Profitability on new-crop oats is lower than almost all other cropping options based on fall-delivered price availability at this time. Growers are discussing rather openly these days some rather dramatic cuts to new-crop oat acres.

The area left as summerfallow in spring 2009 is estimated by Agriculture Canada at 6.042 million acres, which was unchanged from the January forecast but fractionally lower than the 2008 level of 6.069 million.

Mike Jubinville of Pro Farmer Canada offers information on commodity markets and marketing strategies. Call 204-654-4290 or visit http://www.pfcanada.com to find out more about his services.