Economic Impact From Farm Investments in Canada

This study looks at the economic impact of 2015 on-farm investments for six agricultural sectors (hog, beef, cash crops, dairy, poultry and egg) in Canada, excluding production quota purchase. The direct, indirect and induced effect of on farm investments is calculated for the Atlantic, Quebec, Ontario, the Prairies and British Columbia. In Quebec, the model used allowed for the measurement of regional impacts by administrative regions. Comparisons are made between supply and non-supply managed productions. Results indicate that in 2015, Canadian farmers in the six sectors studied have collectively invested more than 9.2 billion dollars that contributed to nearly 89,000 full-time jobs created and 8.7 billion dollars in the GDP. The stability of farm prices that are characteristic of productions under supply management seems favorable to farm investments. While supply management represents roughly 20 % of farm receipts of the six sectors studied, they represent 25 % of total investments and 28 % of the total GDP generated by farm investments. Moreover, on a per farm basis, supply managed farms create significantly more employment and contributions to GDP than their non-supply managed counterparts.

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