Facing Farming’s Biggest Threats Metadata: Facing Farming’s Biggest Threats: OFA’s Drew Spoelstra on Some Top Risks & How Farmers Can Navigate Them Tags: ofa,drew spolestra,market,farmers,costs,weather,land pressure
Farmers have seen several significant threats cast a shadow over the agricultural industry this year.
From the market uncertainties tied to fluctuating trade relations, to rising input costs, urban encroachment on prime farmland, evolving government policies, and the ever-present unpredictability of climate, Ontario producers are facing a challenging environment.
- MARKET UNCERTAINTIES
One of the biggest concerns weighing on many farmers is the uncertainty surrounding trade relations with the United States, particularly the possibility of tariffs.
Spoelstra explains, “60 per cent of our Canadian agriculture exports are destined for the U.S.
“Canadian agriculture also sources a significant amount of livestock feed, veterinary products, farm machinery and agricultural inputs like seed, fertilizer and crop protection products from the U.S., making the agri-food sector tightly connected across our shared border.
“A disruption in trade or tariffs could significantly harm Canadian farmers.”
He adds that in farming, important decisions must be made ahead of time, but it will be challenging to make these decisions if we have no idea what will happen with these market changes.
“This puts us at risk.
“The uncertainty leaves us with many unanswered questions: Will we still have a market to sell into this summer and beyond?
“What will the future of our supply management system look like?”
While we cannot predict the outcome, Spoelstra says, “Farmers must prepare for the worst and hope for the best.”
Spoelstra’s advice for managing uncertain markets
Utilize risk management tools: Ensure your farm is covered with risk management programs like crop insurance;
Maintain communication: Keep strong lines of communication open with buyers and partners;
Seek alternative markets: Seeking alternative markets reduces dependency on a single trading partner.
This allows producers to be adaptable in uncertainty and focus on risk management.
- RISING INPUT COSTS
Another serious threat is the continued rise in the cost of inputs such as fertilizer, seed, machinery, and crop protection products, which have reached unprecedented levels.
As farmers face increasing input prices, the financial strain on farm operations becomes more severe, and maintaining profitability becomes increasingly tricky, Spoelstra points out.
“The pressure from rising input costs is like nothing we’ve seen before.
“When tariffs and price increases hit simultaneously, it creates a perfect storm that farmers struggle to weather.”
He says that few options exist to counter these rising costs, “but we need to do what we must do to survive.”
Spoelstra’s advice for managing rising input costs
Pre-purchase materials: Where possible, purchase materials in advance to lock in prices before costs rise further;
Increase operational efficiency: Focus on streamlining operations, reducing waste, and optimizing resource use to help offset rising input costs.
- INCREASING PRESSURE ON AGRICULTURAL LAND
Ontario’s farmland is under increasing pressure from urban development, with growing demands for housing, infrastructure, and renewable energy.
Spoelstra says, “As population growth and urban expansion continue to push into rural areas, it is essential that we advocate for farmland preservation.
Ontario’s farmland is under pressure from developers and urban expansion. -Mary Loggan photo
“We are fortunate to have some of the best farmland in the world, but it is under threat. If we don’t preserve our land now, we risk losing the foundation of our food production system.”
Spoelstra’s advice for land pressures
Advocate for farmland preservation: Work with municipalities and provincial governments to ensure that farmland is protected for future agricultural use;
Engage in local planning: Participate in planning discussions and stay engaged in local and regional planning discussions to influence decisions regarding land-use policies and the protection of agricultural land;
Build awareness: Help to build awareness. Engage with and through organizations like the OFA to educate the public about the importance of farmland and the risks of losing it.
- GOVERNMENT REGULATIONS
Government policies and regulations continue to present significant challenges to farmers.
Spoelstra explains the increasing burden of carbon taxes, stormwater management requirements, and changes in capital gains taxes are all factors that can negatively impact farm operations.
“As government policies become more complex and taxes rise, it becomes harder to remain competitive while maintaining a profitable operation.
“There are too many layers of bureaucracy that producers are expected to navigate. Policies like carbon taxes and changes to capital gains are particularly damaging.”
Spoelstra’s advice for dealing with policies and regulations
Work with all levels of government: We need to work with all levels of government to ensure that agricultural interests are prioritized and that policies support the industry’s long-term viability;
Strategic tax planning: Utilize tax professionals to minimize the financial burden of taxes such as capital gains tax;
Stay informed: Keep up to date with government policy changes to ensure your business is prepared to adapt. Stay informed, educated and engaged.
- UNPREDICTABLE WEATHER
Weather patterns have always been a source of uncertainty for farmers, with events such as droughts, unexpected temperature fluctuations, or late-season frosts directly affecting crop yields and productivity.
Spoelstra says these events damage crops and disrupt the entire agricultural supply chain, which has a ripple effect on the economy.
“In the face of changing weather patterns, we must remain adaptable.
“We can’t control the weather, but we can control how we prepare for it. As climate change accelerates, it’s more critical than ever that we invest in resilience and sustainability to protect our businesses.”
In addition, minor weather fluctuations, such as late frosts or wet fall conditions, can delay planting and harvest, reducing yields and increasing costs.
He points out that we should always focus on being adaptive and mitigating risk.
Spoelstra’s advice for handling unpredictable weather
Adapt farming practices: Embrace new farming practices that are compatible with changing weather conditions, such as drought-resistant crops and improved water management techniques;
Use insurance and risk management programs: Utilize available insurance and risk management programs to provide a safety net in adverse weather events;
Sustainable farming practices: Invest in sustainable farming methods that improve soil health and mitigate the effects of extreme weather.
Despite the challenges, Spoelstra concludes, “We are some of the best in the world at what we do, and we take great pride in feeding our country, even in the face of adversity.”
He says that farming remains a viable and profitable business for future generations and believes that collaboration, innovation, and perseverance will ensure our farmers continue to feed the nation and the world.
“We can overcome these challenges by staying united as an industry and working together.” BF