Better Farming - December 2016

Better Farming

December 2016

The Business of

Ontario Agriculture

HOW

WORKS

expand acreage of family farm units has become increas-

ingly difficult because of land prices. Low interest rates

and urban expansion pressure have inflated land prices

significantly. You should have recently received your

MPAC Property Assessment Notices, used for taxation

from 2017 to 2020.

Many younger farmers enter into share-cropping

agreements with retiring farmers who wish to maintain

their rural lifestyle. In addition, many farms are being

purchased by investors/speculators. However, these farms

also provide at least temporary expansion potential for

younger farmers to rent or share crop.

The realities

Farm machinery, tractors, planters and combines will

continue to increase in size and will have to cover more

acreage in order to reduce the unit cost per acre – a very

important criteria that must be considered before new or

nearly new equipment is purchased or leased.

At the same time, farm equipment operator expertise

requirements can and will continue to increase signifi-

cantly. Young, potential equipment operators are tending

to leave the farm to test the waters in higher paying

off-farm employment. Most of them want full-time

employment, especially if they are planning to start a

family.

I speak from experience. I left the home farm to go to

college/university and break away.

I also taught many young farm students in the two-year

agricultural diploma programs at Ridgetown and Wood-

stock for a total of 12 years. Whenever there were private

discussions of going back to the farm directly after

Note the long unloading augers on these combines

to reach out past the wide header to unload into

the grain buggies.