Summary: Farmers continue to face many challenges including government pushing to eliminate nitrogen fertilizers. Better land-use policies need to be established to better support food security. High food costs continue to be a challenge for household budgets.

1. Agriculture
Equipment Sector –
Analysis and
Commentary
PAUL YOUNG CPA CGA
AUGUST 11, 2022

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
 North American AG Equipment Sales
 Commodity Prices
 AG Prices – Canada
 Preliminary Crop Estimates – Canada
 Oilseeds
 Energy Prices
 Carbon Tax
 Food Prices
 Hospitality Sector
 Farming Income
 Top Farming States
 Food Processors
 Technology and Farming
 Government and Farming
 Debt
 Summary

4. North American Equipment Sales
Source - https://www.aem.org/Market-Data/

5. Commodity
Prices
SOURCE -
HTTPS://WWW.WORLDBANK.O
RG/EN/RESEARCH/COMMODIT
Y-MARKETS
CMO-Pink-Sheet-Au
gust-2022.pdf

6. Commodity
Prices
Source -
https://economics.bmo.com/
en/publications/detail/5a07e
b5b-9502-43ef-afa6-
1d6a41b675fd/

7. Carbon Tax – Canada
 Carbon Tax / Farmers – Wheat Farmers - https://wheatgrowers.ca/
 Greenhouse growers / Carbon Tax Exemptions - https://www.greenhousecanada.com/bc-greenhouse-
growers-get-permanent-carbon-tax-relief-20363/
 Grain Dryer - https://www.world-grain.com/articles/13262-canadas-grain-dryer-program-tackles-
efficiency
 Carbon Tax hike? - https://www.sherwoodparknews.com/opinion/editorials/editorial-liberals-mum-on-
hiking-carbon-taxes/wcm/a55ed40c-d289-4023-802b-4d2a1335cdc5

8. Hospitality Sector
Blog – Food Services and Hospitality Sector – Canada and the World – August 2021
The food and beverage sector continue to face many challenges.
https://www.slideshare.net/paulyoungcga/hospitality-and-food-service-sector-canada-august-2021

9. Blog – Food Prices
Blog - With Demand Soaring, Booming Food Sector Turns to Food Contract Manufacturing
As demand for food products increases nationwide, businesses are frequently turning to food contract
manufacturing companies to meet that increased need rather than adding additional capacity internally.
Anticipating that demand will eventually return to normal levels, food producers can work with an experienced
co-packer to enhance their operational efficiency without needing to make substantial asset or equipment
investments in-house that may sit unused later on.
Sourcing for food contract manufacturing on the Thomasnet.com platform is up 133% year over year and up
277% over last quarter averages.
Source - https://www.thomasnet.com/insights/with-demand-soaring-booming-food-sector-turns-to-food-contract-
manufacturing/?ecms_id=03a9e6f7-1a59-4bb8-88af-
2bd41a26780d&ecms_short=ART5898&doc_type=ted_video_article&parent_id=8250e2ab-aea8-49ec-ad90-
fe73f30b2122&utm_content=featuredvideo&linktype=title&channel=email&campaign_type=thomas_industry_update&ca
mpaign_name=tiu211004&utm_campaign=tiu211004&utm_medium=email&utm_source=thomas_industry_update&tinid
=221763045
My work - https://www.slideshare.net/paulyoungcga/food-and-beverage-analysis-and-commentary

10. Farm Income
 Farming Income in Canada has been struggling for the past few years -
https://www150.statcan.gc.ca/n1/daily-quotidien/191126/dq191126b-eng.htm
 USA farm income and aid - https://www.agriculture.com/markets/newswire/us-farm-income-expected-to-
rise-in-2019-but-only-because-of-government-aid
 AG subsidies - https://www.agriculture.com/news/business/world-farm-subsidies-hit-2-billion-a-day
 Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (8.1 percent) to $111.4
billion in 2021. In inflation-adjusted 2021 dollars, net farm income is forecast to decrease $12 billion (9.7
percent) in 2021 after increasing $37.8 billion (44.2 percent) in 2020 to its highest level since 2013. Despite
this decline, 2021 net farm income would be 21 percent above its 2000-19 average of $92.1 billion.
https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-
income-forecast/

11. Farm Income – 2021 Farm Income
2021.pdf

12. Farm Income – 2021 Farm Income
2021.pdf

13. Canada
and Farm
Receipts
SOURCE – STATS CANADA
Farm Income -
202109.pdf

14. Farm Receipts
Source – Stats Canada
Farm Receipts.pdf

15. Farm Receipts
Source – Stats Canada
Farm Receipts.pdf

16. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf

17. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf

18. Top Farming States
Source - https://www.statista.com/statistics/196114/top-10-us-states-by-number-of-farms/

19. Food Processors
 Source - www.fao.org or https://www.globenewswire.com/news-release/2019/09/04/1910664/0/en/Food-Processing-Market-to-Exceed-4-Trillion-
by-2024-Key-Trends-Analysis-Opportunities-to-Succeed.html

20. Plastic Greenhouses / CO2
 35% of China’s vegetables come from plastic green houses -
https://www.nextbigfuture.com/2021/03/plastic-greenhouses-provide-35-of-chinas-vegetables.html
 Greenhouse farming - https://gulfnews.com/uae/environment/popularity-of-greenhouse-farming-
options-on-the-rise-1.842642
 South Korea - https://www.hortidaily.com/article/9306173/overview-vegetable-horticulture-in-south-
korea/
 Global Market - https://www.databridgemarketresearch.com/reports/global-plastic-greenhouse-
market
 Ontario/Greenhouses - https://windsor.ctvnews.ca/ontario-government-investing-3-6-million-toward-
innovation-projects-in-the-greenhouse-sector-1.5285128
 NZ and the Middle East - https://www.freshplaza.com/article/9307955/new-zealand-has-a-huge-tech-
opportunity-in-the-middle-east-s-growing-horticulture-industry/

21. Technology and Farming
 AI is transforming farming - https://www.forbes.com/sites/cognitiveworld/2019/07/05/how-ai-is-transforming-
agriculture/#1fa34bec4ad1
 AI and farming - https://customerthink.com/the-role-of-artificial-intelligence-in-agriculture-sector/
 IBM and farming - https://farmtario.com/news/ibm-expands-artificial-intelligence-platform-into-agriculture/
 RPA and Farming - https://blog.accubits.com/robotic-process-automation-in-agribusiness/
 IBM and Expert Farming - https://www.prnewswire.com/news-releases/farmplan-using-ibm-pairs-to-predict-blackgrass-
weed-before-it-damages-crops-301151067.html
 AG App - https://www.techrepublic.com/article/farming-assistant-app-agrolly-wins-ibms-call-for-code-contest/
 Smart farming - https://farmingfirst.org/2020/10/transforming-agriculture-through-smart-farming-from-data-ownership-
to-open-data/
 Telecom/Farming - https://ca.finance.yahoo.com/news/agriculture-analytics-market-reach-2-133100885.html
 Blockchain and Food Protection - https://blog.trustbix.com/how-blockchain-can-support-food-supply-chain-management

22. Government / Farming
 Elimination of trade barriers - https://www.slideshare.net/paulyoungcga/what-is-next-for-for-global-
trade-protectionism
 More emphasis on local supply chain management solutions -
https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
 Tax fairness and regulatory reforms - https://www.slideshare.net/paulyoungcga/does-the-world-need-
a-wealth-tax
 Government provides direct subsidies and/or loans to farmers
 Government needs to revisit all their programs to ensure various programs are efficient and effective -
https://www.slideshare.net/paulyoungcga/market-food-protein-market-analysis-and-commentary or
https://www.oag-bvg.gc.ca/internet/English/parl_lpt_e_934.html or https://thetyee.ca/Opinion/2016/03/08/BC-
Carbon-Tax-Failure/
 Automation can help with automation of audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-
performance-base-auditing

23. Farm Debt
Source -
https://www.portageonline.c
om/ag/agriculture-news-
mb/fcc-economist-says-
farm-debt-under-control-
watch-for-higher-interest-
rates

24. USA Farm Debt
Source -
https://farmpolicynews.illinoi
s.edu/2021/06/farm-lending-
remains-strong-in-2020-
american-bankers-
association-report/

25. Summary
 All levels of government need to work together to better support the agriculture and food processing
sector
 The world needs to unite to fixed issues with WTO
 Farm input costs continue to plague farmers around the world
 Water, forest, and land management continue to face world’s population growth
 More balanced between environmental and economic policies.
 Better land use policies Blog – Agriculture Equipment and Food Sector – Canada and the World – July 2022
CAN-Month-Ag-Rep
ort-7-2022.pdf
US-Month-Ag-Report
-7-2022_1.pdf
CMO-Pink-Sheet-Au
gust-2022.pdf
Summary:
Farmers continue to face many challenges including government pushing to eliminate nitrogen
fertilizers.
Better land-use policies need to be established to better support food security.
High food costs continue to be a challenge for household budgets.
Innovation Potato
Farming.pdf
Food security and
Costs - AB.pdf
CMO-Pink-Sheet-Au
gust-2022.pdf
20220508_Economic
Outlook_National Banque.pdf
202207_Farm
Equipment Spending.pdf
Farm land value.pdf
Farm Input Costs.pdf Food costs and
Restaurant.pdf
Grocery Store
Profits.pdf
Food costs.pdf Vertical Farming.pdf Farming and
sustainability.pdf
1. Farm equipment spending - https://www.marketwatch.com/press-release/farm-equipment-
market-size-estimated-21400511-million-with-cagr-of-384-current-insights-and-development-
trends-report-2022-2028-2022-07-12
2. Farmland https://www.agri-pulse.com/articles/18106-farmland-values-surge-amid-strong-crop-
prices-and-inflation
3. Farm input costs - https://www.farms.com/news/texas-dairy-producers-see-high-prices-high-
input-costs-183015.aspx
4. Food processors costs - https://restaurant.org/research-and-media/media/press-
releases/inflation-reduction-act-will-not-help-restaurants/
5. Grocery stores - https://ca.finance.yahoo.com/news/metro-reports-275-m-profit-as-more-
customers-turn-to-discount-brands-164544021.html
6. Food https://financialpost.com/pmn/business-pmn/food-prices-in-us-surge-most-since-1979-
keeping-cost-of-living-high
7. Vertical farming - https://www.verticalfarmdaily.com/article/9449065/can-yt-bringing-fresh-
produce-to-yukon-and-all-northwest-territories/
8. Sustainability - https://dairyfarmersofcanada.ca/en/canadian-goodness/lifestyle/farm-home-
sustainable-net-zero-future
9. Potato farming - https://steinbachonline.com/articles/mcdonalds-canada-and-mccain-foods-
partner-to-launch-the-1m-future-of-potato-farming-fund
10. Food security - https://www.westerninvestor.com/alberta/federally-ordered-fertilizer-cut-
threatens-food-security-experts-warn-5655294