'We've seen a steep decline': Alberta making changes to support young farmers

Alberta’s Agriculture and Irrigation Minister, RJ Sigurdson, speaks with Alberta Primetime host Michael Higgins about support for young farmers and the upcoming harvest.

 

This interview has been edited for length and clarity.

 

Michael Higgins: The number of young Albertans turning to life on the farm and on the ranch has been in steep decline over the past two decades, according to the province, and in a bid to reverse that trend the government is bringing new financial incentives to the table.

Let's start on this trend of fewer Albertans turning to a life on the farm. What do those dynamics look like? How concerning a situation is it?

RJ Sigurdson: We've seen a steep decline since, definitely, 2001. The under 35 is decreased by 43 per cent, between 35 and age 45 has decreased by 59 per cent and really, these are concerning numbers. When we're looking at the future of the industry, we want to make sure that we are getting new farmers and the next generation of farmers into the industry as soon as possible. So that's why we have announced our changes to the AFSC Next Generation Loan Program to be able to aid them and make it a little easier just to transition into their family farms and new farmers to get into farming.

MH: Why do you think those numbers are where they are? What is it about the current state of farming that young Albertans are looking to careers elsewhere?

RS: I think one of the things that we need to do better as a province is really explain to the next generation the possibilities of what there is in farming. I think that's something that we've spoken about as a government. It's that educational piece. Of course, some of the complications have come around the cost of land, the cost of equipment, the general input costs. All these things are contributing factors that make it more difficult for the next generation to get in and really make sure that they have a clear path to a sustainable farming operation.

MH: With a lot of Alberta farms passing down through the generations, what does this trend in numbers then say about where farm and ranch families are at with succession planning?

RS: In Whitehorse for the Federal-Provincial-Territorial negotiations we expressed our concerns about how the capital gains tax may be a negative impact to generational farmers that are looking to take over their family farms. We've looked at a lot of factors that have really been contributing, but one of the main contributing factors is the access to capital. And that's why we've moved ahead with changes to the Next Generation Loan Program, to give them a better option or a lower interest option that might aid them in being able to transition and take over the farm from their mother or father and really have a good chance of moving forward for generations to come.

MH: So how significant then are these changes to the loan program? What difference are they going to make?

RS: Well, first and foremost, we always want to make sure that AFSC lending programs are successful. So the changes that we made is the eligibility for one per cent interest rate incentive. It's now expanded to entering farming or returning farming individuals for the ages of 40 and older. The cumulative lifetime principal eligible for an interest rate incentive, we increased that from a million to one and a half million. And the percentage of ownership requirements for incorporated applicants, we decreased by five per cent to 20 per cent and eligible borrowers within the Next Generation Loan Program can make interest-only payments on their loans for up to five years. That's an increase from two years. These small changes, we're hoping, will make an impact in aiding that next generation to be able to find a pathway, a clear pathway, in that succession planning in taking over the farms from their parents and new farmers getting into farming.

MH: How do you see that changing the conversation around the farm family dinner table?

RS: This is only one of many changes that we want to take a look at. Of course we're looking at strategies to be able to decrease input costs, which increase profitability, which is essential for our farm families, but I think this is a huge step forward in providing a low interest option which will help bridge that larger capital gap that we're seeing from some of the inflationary pressures that have been impacting farm and farm families over the last few years.

MH: Let's quickly change gears. Significant thunderstorm activity across a large swath of southern Alberta Holiday Monday, as well as reports of baseball-sized hail in some locations. What can you tell us about impact on the agricultural community?

RS: This is why we always want to make sure that we have the strongest business risk management programs available to our farmers here in the province. Of course there is hail coverage available to our farmers, and we continue every year to work with AFSC to make sure that we strengthen those risk management programs that are so essential to mitigate the damage that can come from events like last night.

MH: We had a wet, cool spring in many parts of the province followed by windows of really warm weather. What's your read on crop conditions across the province and the expectations of producers as harvest draws near?

RS: We saw an amazing spring. I mean considering the drought conditions that we've had two of the last three years, we had a great spring that really started off the crops extremely well. But of course we've seen a lot of heat that has come over the last couple of weeks that has turned those crops a little earlier than we'd like to see. But overall the reports that we're getting from the province are still positive for this year. We're a long way from the final tally but right now it's still looking positive considering the conditions, and where they were last year. The early spring rains and the moisture that we got really aided getting crops going this year.

MH: Building anxiety over a possible strike involving employees with Canada's two major railways. How concerning worrisome a situation would that be for Alberta producers with harvest just around the corner?

RS: It definitely has an impact on all industries but of course it creates a lot of anxiety for farmers. It's important for them to have direct access, to be able to get their commodities to market and get paid. So of course, the Government of Alberta is closely monitoring the situation. We're getting a report of both from CN, CPKC, and of course we understand and support collective bargaining but we really are urging them to come to a quick agreement so we don't see any disruptions that may adversely affect the agricultural industry.