This presentation looks at food production in Canada including changes with government policies. Farmers are key, but are struggling with higher costs related to carbon tax and/or electricity. Higher farmer costs could impact food production cost as part of the overall food prices that consumers will pay at the grocery store.

1. PRESENTER
Government Policies – Food
Production – Canada

2.  Manufacturing
 Exports
 Market Outlook / 2017
 Government Policies
 Commodity Index
Agenda

3.  Stats Canada
Food Manufacturing/Canada

4.  Stats Canada
Canada Exports

5.  Scotiabank
Commodity Index

6.  Net cash income in 2016 is estimated to experience a modest 2% annual decline to $14.8
billion. A decline of 7% to $13.8 billion is expected in 2017, however 2016 and 2017 are still
expected to be the second and fourth best years on record, respectively.
 Livestock receipts in Canada are expected to decrease by 7% in 2016 to $23.9 billion as a
result of downward pressure on North American red meat prices from growing meat
supplies in the U.S. with a further decline of 4% for 2017.
 Crop receipts are expected to increase 2% to $32.6 billion in 2016, and increase by a further
1% to $32.9 billion in 2017.
 With lower market receipts anticipated in both forecast years, program payments are
expected to make up some of the shortfall, increasing by 24% in 2016 to $2.6 billion, and by
a further 22% in 2017 to reach $3.2 billion.
 Farm operating expenses are forecast to decline by about 1% in 2016, to $44.2 billion, and
increase by 2% in 2017 to $45.1 billion.
 The net worth of the average farm is expected to increase, reaching $2.8 million in 2017.
Canada AG Sector 2017 Outlook
Source https://www.canada.ca/en/agriculture-agri-
food/news/2017/02/canadian_farmingforecastsuggestscontinuedpositiveeconomicoutlook.html

7.  Farm Income
 Grain growers in Canada who take deferred cash purchase tickets for crops are being asked whether it’s time to
get rid of the rule that allows income from those tickets to be put off to the following tax year.
 Tucked into federal Finance Minister Bill Morneau’s budget on Wednesday was an announcement of public
consultation, running until May 24, on the income tax deferral available to farmers holding deferred cash
purchase tickets.
 Insurance Change
 eliminate the income tax exemption for insurers of farming and fishing property, which was introduced in 1954
to encourage the provision of insurance in rural districts. With the increased sophistication today of the Canadian
financial sector, insurance companies—including mutual companies—are well placed to effectively underwrite
farming and fishing risks.
 Carbon Tax / Price for Carbon
 Farmers will add the cost to their goods they produce which could mean higher consumer prices
 No assistance for Canadians to prepare for Justin Trudeau’s carbon tax, which at the start will cost agriculture
producers $10-15 per acre and will increase. This will cost a 3,000-acre farm $30-50,000 per year;
 Farmers will be at cost disadvantage with farmers in USA when it comes to cost position
Government Policies