The plight of Nova Scotia farmers: Some facts

(EDITOR'S NOTE: Canning farmer Richard Melvin, executive member of the Nova Scotia Federation of Agriculture, spoke March 8 at a Bridgetown rally in support of Annapolis Valley pork producers. Following are excerpts of his remarks.) -- Nova Scotia Federation of Agriculture mission: "To ensure a competitive and sustanable future for agriculture and a high quality of rural life in Nova Scotia." -- Our goal is to assist in building farm businesses that are financially viable, ecologically sound, and socially responsible.

I am here this evening to share some grave concerns about the present situation of the ag industry. As well, I want to acknowledge the significant role agriculture plays in our province, both now and hopefully if we take the right steps, in the future.

As of 2001, 2,000 Nova Scotians worked on farms. Thirteen-thousand Nova Scotians are employed in jobs directly related to agriculture (ie: processing, distribution, and other support sectors).

Farm gate sales in Nova Scotia, spread through every county in NS equal $450 million. Sixty per cent spent by farmers in their immediate communities. $20 million in Annapolis County, $132 million in Kings County, $34 million in Hants County. Those three counties represent 250 farms.

As well this farm activity results in $129 million per year in federal and provincial direct and indirect taxation.

A recent survey indicates that farmers and employees are active participants in their community: -- 39 per cent in church. -- 19 per cent in charity work. -- 15 per cent in volunteer fire departments. -- 12 per cent in sports groups. -- 10 per cent in groups like 4-H.

These facts show the important role farm people play in their communities. They very clearly understand the importance of maintaining community organization and more importantly are prepared to work to get positive things done in their communities.

In the past five to 10 years, agriculture in Nova Scotia has been under constant pressure financially.

This pressure affects all parts of the ag sector.

The closure of Avon Foods in Berwick five years ago; recent closure of Shur-Gain Feed Mill in Port Williams; recent announcement of Maple Poultry in Canard; grave concerns related to Larsen's Packers in Berwick and the primary hog producers.

As well, the number of farmers continues to drop at an alarming rate of five per cent a year. The average age of primary farmers is 55 years of age.

Farm debt has risen at a very alarming rate over the past 10 years, rapidly accelerating over the past three years. In 1995 $300 million debt on farm sales of $350 million. In 2005 that had risen to $700 million on farm sales of $450 million.

On a good year, farm net income is in the three per cent range, or $13 million. $13 million compared to $700 million in debt is a terrifying comparison, and shows the high degree of financial burden farmers are carrying.

If interest rates on farm debt were to climb even two per cent this would totally absorb the profit margin our farms make.

The past several years have been particularly challenging for farmers. The NSFA, on behalf of its 2,600 farm members, has been attempting to develop ways to help farmers move into a better future. In this regard, in the fall of 2006 in collaboration with the Nova Scotia Department of Agriculture, we formed a working group to develop a transition plan for agriculture. The premise behind this exercise is that markets currently do not provide NS farmers with a reasonable return for their productive activities. Also it is recognized that in most cases, NS farmers cannot compete in the production of commodities that are priced on a global basis -- especially with vastly differing levels of government support to agriculture. For every dollar of Canadian (subsidy) support, the US offers $2.35 and the European Union $2.65.

It is recognized that agriculture in NS will have to evolve from producing commodities to selling 'differentiated food products' such as value-added/packaged products (the average household spent 2.5 hours preparing food in 1950 --today that figure is 15 minutes and is decreasing), organic, and clearly distinguishable local foodstuffs.

This type of transition cannot happen quickly. Estimate five to 10 years.

In the current situation of farm debt, it is clear that farmers have mostly exhausted their ability to inject capital to facilitate such a dramatic transition.

The transition group is meeting weekly and working three different ideas and models of how to stimulate this transition. The transition group is due to release its findings on April 1, 2007.

As farmers, we eagerly await this report, and are hopeful it will provide some immediate assistance to farmers as well as a longer-term vision.

In Canada/NS we are very fortunate to have access to a continuous supply of high quality, safe food. At the same time, an average household spends only 10.2 per cent of income on food (this is 64 per cent in some developing countries). Food freedom day is February 16 (in Canada).

We atke the security of a constant food supply for granted. Several years ago, when truckers were faced with high fuel prices, they closed the NS/NB border for several days. Even in that short period of time, empty spots started to show on retail shelves.

If something more significant was to occur, and international borders were closed (Nova Scotians would be in a) more critical situation.

The farm community is 1.5 per cent of the total population. Politically our votes are not considered significant in the broad context. It is very important that non-farm people become aware and involved in the issues that face agriculture.

With your assistance we can make a difference and help ensure a stable food supply and a healthy rural Nova Scotia economy.