Section 4: Beneficiaries of agricultural ecosystem goods and services

Society is a beneficiary of the final ecosystem goods and services provided by the agricultural environment. Agriculture makes direct and indirect contributions to the Canadian economy. Primary agriculture—crop and animal production—accounted for 1.1% of Canada’s gross domestic product (GDP) and 1.6% of employment in 2010. The overall contribution to the economy and society is much larger, however, as agriculture allows for activity in many other important sectors of the economy including food and beverage manufacturing, wholesale, retail and food services. In 2010, the agriculture and agri-food system’s ¹  GDP accounted for 6.4% of total GDP and 12.1% of total employment. ^{2 , 3 , 4} 

Farmers benefit directly from ecosystem services as an input into agricultural production, allowing them to earn a living and maintain their connection to the land and lifestyle. Consumers, whether they are local, regional or global, benefit from Canadian agriculture. Over 70% of the food Canadians bought in 2010 was produced domestically. ⁵  Canada is particularly self-sufficient for meat, dairy (including eggs), breads and cereals. ⁶ 

People living close to farming communities can also enjoy green space and open vistas provided by agricultural land and enjoy fresh local foods, often sold at local farmers’ markets, farm stands, through community-supported agriculture programs and in stores. In 2011, 90% of Canadian households reported that they purchased locally grown or produced foods when they were available or in season. ⁷  There is a growing interest in local food production, including urban farms, market gardens ⁸  and backyard gardening (See Textbox 5: Homegrown agriculture for more information).

Farmers

Farming communities are changing—farms are getting bigger while the number of farms and farm operators is decreasing and farmers are getting older. These changes influence who benefits directly from agriculture.

Widespread socio-demographic factors have led to consolidation in the farm sector—the number of farms dropped 44% between 1971 and 2011 while the average farm has increased in size from 188 hectares to 315 hectares. ⁹ 

In 2011, the Canadian farm population numbered 650,395 people, 90% of whom lived in rural areas (Table 4.1). Overall, the farm population accounted for 2% of Canadians; however, it represented 10% of the population in rural areas, reaching 28% of the population in rural Saskatchewan and 20% of the population in rural Alberta. The largest farm population was found in Ontario at 174,905 or 27% of the Canadian farm population, followed by Alberta with 129,810 or 20%.

From 1991 to 2011, the number of farm operators decreased from 390,875 to 293,925 or 25%, while the average age rose from 48 to 54 years. ¹⁰  Close to half (48%) of farm operators were aged 55 and older in 2011, up from one-third (32%) in 1991 (Chart 4.1). Only 8% of operators were under the age of 35 in 2011, down from 20% in 1991. In comparison, 16% of the self-employed labour force was under the age of 35 in 2011. ¹¹ 

The high capital costs required to purchase land and machinery, as well as the production quota for dairy and poultry farms can create barriers to entry for young farmers. ¹²  In 2011, 69% of farms reported total farm capital values of $500,000 and over. ^13 , 14 

The Canadian agricultural sector continues to restructure to fewer, larger farms, resulting in economies of scale allowing improved productivity and sales. While 62% of farms reported having gross farm receipts of less than $100,000 in 2010, their numbers have dropped by 34% since 1990. In contrast, the number of farms earning $500,000 and over, more than doubled (166%) during the same period (in 2010 constant dollars). ¹⁵ 

In 2010, the median total income for farm families, including farm and off-farm sources, was $74,604 compared to a median total income of $76,458 for all families (Table 4.2). ¹⁶  By farm type, poultry and egg producers had the highest median incomes in 2010 at $90,250 while dairy cattle and milk producers had the lowest at $65,010 (Table 4.3).

Consumers

Consumers benefit from the many products generated from agricultural ecosystems. The variety of foods available to Canadian consumers has expanded over the years. Increasing consumer demand for things like healthier food choices, local foods and organic products have influenced the foods available in both stores and restaurants.

While the amount Canadians are spending on food is increasing, the proportion it makes up of their total personal spending is decreasing. In 1981, Canadians dedicated 12% of their total personal spending to food and non-alcoholic beverages. In 2011, this amount had decreased to 8%. ¹⁷ 

Not all agricultural products enter the food system. Agricultural biomass is also used to make industrial bioproducts—products made from renewable biological inputs. In 2009, Canadian bioproduct firms ¹⁸  obtained their biomass from farms over any other source. Agricultural biomass accounted for 11 million tonnes of the more than 27 million tonnes of biomass used by these firms in 2009. ¹⁹ 

Once agricultural products have been produced and harvested they are shipped both domestically and globally. In 2013, international exports of farm, fishing and intermediate food products reached $27.9 billion—6% of all merchandise exports—with wheat (24%), food and tobacco intermediate products (21%), other crop products (18%) and canola (15%) accounting for the largest proportions (Table 4.4).

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