Canada is a trade-dependent country across several industries, including agriculture. However, Canadian primary producers have different opinions about the real value of trade.
A recent RealAgristudies survey found that only 52% of Canadian farmers and ranchers perceive trade and market access to have a positive impact on their operations. Although this statistic may seem modest at first glance, it provides a window into the range of experiences and perceptions across agriculture. As we took a closer look at how different producers responded, some of the differences within the industry began to emerge.
RealAgristudies research results is based on a scale from -2 (very negative) to +2 (very positive), with 0 being neutral.
Farmers primarily engaged in crop production perceive higher benefits from trade and market access, with an average positive score of +0.62. This is in contrast to the livestock sector, which has a lower score of +0.22. This low score for livestock is based on the impact of supply management, which will be discussed later.
The discussion becomes even more complex when we look more closely at farm size and income levels. Surprisingly, the largest farms with revenues over $5 million earned the least from trade, rating their advantage at just +0.24. This finding challenges the assumption that large farms are always in a better position to take advantage of global markets. In contrast, farms with revenues between $2.5 million and $5 million had higher positive attitudes at +0.68. It is currently unclear why the largest farms are less positively affected by trade agreements, but this is an issue that will be explored in the future.
A generational perspective provides further differentiation, with younger farmers under 35 viewing trade and market access more positively, with an impressive score of +0.83. This optimism fades with age, with farmers aged 65 and older recording a lower score of +0.41.
The regional analysis also helps us understand some important differences with farmers in Western Canada, which has more export-oriented operations, assigning it a positive score of +0.61. This contrasts with Eastern countries, which gave a low score of +0.27, highlighting geographic disparities in trade dependence and attitudes within Canada.
Differences are notable within the livestock sector, with dairy farmers rating the trade impact at -0.47, reflecting the challenges faced by the supply management sector in the wake of trade agreements. However, beef and pork producers remain positive with scores of +0.32 and +0.36, respectively, highlighting differences between farm types.
Indeed, I would have thought that farmers whose supply is managed would think that trade would have a greater impact, and likewise beef and pork would think that trade would have a more positive impact than recorded. . Beef farmers have seen the clear example of the 2003 BSE crisis to understand what happens to the industry when trade options evaporate overnight.
These insights demonstrate that the impact of trade and market access on Canadian agriculture cannot be generalized. A broader look at the data makes us wonder if export-dependent farmers are underestimating trade. What needs to happen policy-wise on the national or international stage for perspectives to change? From a brand perspective and economic reality, Canadian agricultural trade advocates need farmers to see the benefits and value. There are some things to do to convince them to go back to the farm. We also want to challenge ourselves to take a deeper look at how trade can better serve producers in the short and long term.
In the coming weeks, we’ll look at other policy issues and how farmers feel affected by the policies. In my opinion, this will provide much more clarity and help farmers’ voices be heard and better understood.
