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November 2009

2009 Agriculture Day in Victoria: Agriculture Day was held on October 28th and 29th in Victoria. The event is the Council’s main activity of the year to demonstrate within government the important economic and societal contributions of agriculture. This year’s Ag Day featured an evening reception and agricultural showcase with MLAs and government officials on Oct 28th and a series of BCFGA representatives displaying their ‘2010’ apples with an enthusiastic group of meetings the following MLA’s, from left to right Jane Thornthwaite, Hon. Ida Chong, Kirpal Boparai, Joe day. Member associa- Sardinha, , Hon. Steve Thomson, Joan McIntyre and the Hon. Bill Ben- tions and affiliated nett. organizations and initiatives had display booths where they could feature their sector’s positive contributions. The displays – pop-up banners and agricultural material provided a colourful and highly informative backdrop for the evening. The many displays highlighted and promoted each sector’s accomplishments, value to the economy and society, and challenges. The combined tradeshow and reception format provided a casual backdrop for one-on-one discussions with MLAs as they enjoyed BC wine and appetizers. Welcom- ing comments were provided by BCAC Chair Garnet Etsell, the Honourable Steve Thomson, Minister of Agriculture and Lands, and Lana Popham, agriculture and lands Minister of Agriculture and Lands Steve Thomson and BCAC Chair Garnet Etsell critic.

1 The evening was a success – a large number of MLAs attended the event and, as they left, many com- mented on how important agriculture is to the province and how they value BC’s farmers. Several also commented that they appreciated the format and that the booths gave them valuable information on each sector – the over 20 displays helped to create awareness of the very wide diversity that exists within BC agriculture.

The second day started with a breakfast meeting and orientation for the 50 BCAC member association representatives and guests – Minister Thomson; MLA’s , Lana Popham, , and ; Deputy Minister Larry Pedersen; and Minister’s Office staff RJ Senko and Sarah Elder. The Minister gave a keynote address on how we can better raise the profile of agriculture within government – with many excellent ideas coming forward from both the speech and ensuing discussion. BC agriculture has become a leader in innovation and the adoption of new technology, environmental stewardship and food safety – which gives the industry an opportunity to develop a higher level of trust with government. It was noted, however, that we have a long way to go in this regard, but that this was seen as the key objective of the Agriculture Day events. Participants were encouraged to use their meetings as an opportunity to build bridges and positive relationships, to highlight both the economic and societal importance of agriculture, and to make important connections on key issues, thereby laying the groundwork for establishing future dialog.

The remainder of the day featured groups of farmers and ranchers and association staff meeting with Cabinet Ministers, MLAs, and senior government staff. Three of the meetings focused on key themes important to the agriculture sector – agriculture and water, agriculture and health, and agriculture and climate change. There were meetings with staff from several agencies – Ministry of Environment, Ministry of Labour, Ministry of Finance, Pacific Carbon Trust, BC Assessment Authority, the BC Farm Industry Review Board, and BC’s Chief Forester. Another key meeting was with Ministry of Agriculture and Lands executive staff to discuss the restructuring of the Ministry and its relationship with industry. The meetings with MLA’s and Cabinet Ministers were both individual meetings and meetings with larger groups of MLA’s. Ag Day was further promoted with all the Cabinet Ministers and Parliamentary Secretaries receiving a basket of BC products and agricultural promotional items.

The BC Agriculture Council would like to thank all the farmers and ranchers and association executives that took the time out of their busy schedules to come to Victoria to make Ag Day the success that it was. You are the reason for its success! We would also like to thank all the associations and companies that provided material for the Ag Day bags that went out to all the Cabinet Ministers. We all worked together to create a memorable event. The BCAC will be reviewing all comments provided through the feedback response forms to use as the basis for planning the next Ag Day.

Upcoming BCYF Event: For their next event, the BC Young Farmers are partnering with RBC to present a family business planning seminar with Jolene Brown. The session is “The Facts of Life: When Family and Business Collide”. It is a fast paced, eye opening workshop where you will learn the important first steps to become a successful “busi- ness first family.” The event will be held Tuesday, November 19 from 9 AM to 3 PM at the Rancho in Abbotsford. (35110 Delair Road, Abbotsford, BC). Please RSVP by Wednesday, November 11 at bar- [email protected] or 604-533-6880.

Highlights from the Regional SAWP Meetings: BCAC on behalf of WALI attended the two day regional Seasonal Agriculture Workers Program (SAWP) meetings with Counsel Representatives from Mexico and the Caribbean Islands, HRSDC, WorkSafeBC, the Employment Standards Branch, and participating SAWP farms. The first day was with Mexico and the second day was with the Caribbean Islands. For the first time since the program came to BC, there was a drop in the number of workers that came to BC from Mexico. The drop was attributed to the new Visa requirements for all Mexicans coming into Canada, H1N1, and the cold, late spring. HRSDC is still in the

2 process of developing a methodology to determine prevailing wages. Wages for 2010 will be set at the national SAWP meetings; they are expected to be similar to 2009 wages, but with an increase to compen- sate for the cost of living. HRSDC is developing national housing guidelines – BC has had its own provincial guidelines for the past several years, so the new guidelines are not expected to impact BC participants significantly. For more detailed notes on the SAWP meeting, please contact Christine at Chris- [email protected].

News from the BC Farm Animal Care Council: The BCFACC was officially launched in October. The formal announcement was made by the Abbotsford Member of Parliament Ed Fast at Garnet Etsell’s turkey farm in Abbotsford. Funding for the initiatives comes from the Investment Agriculture Foundation. Representing the IAF was Dr. Chris Byra, who is an IAF Director as well as a member of the BCFACC Board. The common theme of the presentations was that BCFACC will result in animals benefiting, farmers and ranchers benefiting, and agriculture as a whole benefiting. The initiative should help reconnect the urban population to how food is raised.

For further information on BCFACC please contact Geraldine Auston at the BCFACC office at 604.287.3276 (FARM) or [email protected].

Pre-Budget Consultations with the Ministry of Finance: BCAC and association representatives met with staff from the Ministry of Finance to provide input into the consultation process in preparation for the 2010-11 provincial budget. BCAC started the discussion by noting the importance of the sector to the BC economy and, at the same time, the significant challenges faced by the industry. Net income for BC farmers and ranchers in 2008 was negative $134 million, which followed losses of $113 million in 2007 and $122 million in 2006. The BCAC noted that it would be looking at develop- ing options for an improved mechanism to fund the work of the council and its members, and will be looking to the Ministry of Finance for support in ultimately implementing a funding mechanism that will provide the capacity within these organizations to develop long-term strategic approaches for the BC agriculture sector.

The pre-budget input touched on a number of issues, including HST, the carbon tax, farm land assessment and tax policy, meat industry enhancement, agriculture and health, a domestic branding program and coloured gas use in the Washington State. BCAC pointed out that the Council fully supports the HST, and has joined the HST Coalition being lead by the BC Business Council to promote its implementation. The HST will provide a significant and much-needed boost to BC’s agriculture sector overall – as changes to the antiquated PST system were long overdue. It has the potential of providing the single largest benefit to the BC agriculture industry from a government policy change in a very long time.

Regarding the carbon tax, however, the benefits provided by the HST are far outweighed by the negative impact of this tax in some sectors of agriculture, most notably for greenhouse vegetable and flower growers. The Council requested that the planned increase in the carbon tax for 2010 be postponed for at least one year, and BC Greenhouse Growers Association representatives at the meeting provided more input on the significant financial stress being faced by the industry even without the incremental tax increase. Postponing the planned increase would be one means of providing at least some relief to the sector. It was noted that the UBCM had passed a resolution at its recent convention that agriculture be exempt from the carbon tax.

News from the Canadian Agricultural Human Resources Council (CAHRC): CAHRC has recently completed a key foundation study titled “Labour Market Information on Recruitment and Retention in Primary Agriculture”. It is the first large scale national study on this topic in many years. Data on agriculture is difficult to obtain despite there being several official sources that provide information. Both Census Canada and Statistics Canada’s Labour Force Survey’s don’t provide an accurate picture of

3 employment on Canadian or BC farms because of the specialized nature of agriculture. There are issues around seasonal employment, foreign workers, piece rate, and family members working on farms. This study talked to individual farmers and ranchers across Canada and across sectors to gain more insight into recruitment and retention on Canadian farms and to create individual farm recruitment and retention profiles.

Some of the key findings were: 1. Canada’s agricultural sector employs a large number of workers – 336,200 across Canada, with 36,800 on BC farms; 2. Agriculture’s high vacancy rate and the growing use of foreign workers (26,000 in 2008) suggest that Canadian farmers are facing human resources challenges – we don’t have enough workers; 3. Employers in primary agriculture indicate that they will need a considerable number of workers over the next two to five years – 37% of employers say they will need more workers; in BC the labour gap could be over 4,000 full-time workers and 8,000 seasonal workers by 2013; 4. Employment requirement will differ based on regions, commodity type, and major occupational group; 5. Agriculture has not sufficiently developed its human resource capacity.

The report clearly shows that BC farmers and ranchers cannot meet their labour requirements by recruiting Canadians – agriculture will rely more and more on Temporary Foreign Worker Programs. The full report can be found at: http://www.cahrc-ccrha.ca/. Employers should consider using the report’s findings when applying for their Labour Market Opinions from HRSDC.

CAHRC has also produced a new website that provides listings of training and learning programs on agriculture across Canada. The information is organised by commodity, by subject or by region. If you or one of your staff is interested in growing a career in agriculture, you should check out the web site: agritalent.ca.

Beyond Organic – How Evolving Consumer Concerns Influence Food Purchases: Context Marketing recently surveyed a national sample in the United States of more affluent consumers to determine which issues-based product claims are most important to them when making specialty grocery and restaurant menu decisions. The research emphasized quality claims having to do with safety and health, as well as ethical considerations and their role in the purchase decision. It did not include nutrition claims. While the results confirm the strong influence of low price on the purchase decision, they also illustrate several trends, including a shift away from some familiar quality claims such as organic and free-range. It is not that these terms are no longer valued, rather that newer claims have captured the consumer’s attention. Below are study highlights: 1. Consumers are paying closer attention to food quality claims. They also are increasingly savvy about evaluating them. The more educated and affluent consumers included in the survey are familiar with many if not most of the issues behind the claims being made today by producers, manufacturers, and restaurants. Interestingly the top issue was low-mercury seafood with 61% saying this was very important or important. Produced in the USA was 57%, locally grown was 50%, from family farms was 41%, and organic was 35%. Consumers are becoming savvier about food claims – quality claims quickly become accepted (or required) practices as consumer expectations increase. 2. Safety concerns lead the list. The quality claims that consumers find most meaningful today relate to food safety. Most important are claims that assure consumers that the things they do not want to see in food are not there, such as antibiotics and artificial hormones. Food safety is important to the majority of shoppers and especially women who bring somewhat greater concerns to food choices. 3. Ethical claims are important. Although safety is the primary concern, ethically-based claims also are important, especially with a large subset of consumers. One reason is because ethical claims are frequently linked to safety issues; another is that ethical behaviour is important for a company seeking to gain consumer trust and loyalty 4. Most will pay up to 10% more for quality. Over 60% of respondents stated that price is the main reason why they purchase a product. Interestingly, 60% of respondents reported they are willing to

4 pay up to 10% more for food that promises to be healthier, safer or produced to higher ethical stan- dards. Another 12% said they would pay more than a 10% premium.

Source: http://www.contextmarketing.com/sources/foodissuesreport.pdf

Farmland Values Report: A recent report released by Farm Credit Canada (FCC) found that the average value of Canadian farmland increased 2.9 per cent during the first six months of 2009. Twice a year since 1990, FCC appraises farm properties across the country and releases a report on its findings. Appraisers estimate market value using comparable sales.

Farmland values increased in most provinces with New Brunswick experiencing the highest increase at 5.6 per cent, followed by Manitoba with an increase of 5.5 per cent. Quebec and Nova Scotia also experienced similar percentage increases at 4.3 and 4.2 per cent respectively. Saskatchewan farmland values continued to rise with a 3.4 per cent increase, followed by Ontario and Newfoundland and Labrador which each experienced an increase of 2.8 per cent. Alberta had the smallest increase at 1.0 per cent while British Columbia and Prince Edward Island farmland values decreased by 0.7 and 1.4 per cent respectively.

B.C. farmland experienced a 0.7 per cent decrease in values for the first half of 2009. The FCC report states the length of time farm properties were listed for sale was greater than in previous reporting periods and vendors were not willing to decrease asking prices. Northern B.C. saw fewer farmland sales. Inclement spring weather resulting in poor crops may contribute to lower demand for the remainder of the year. In the Vanderhoof area, foreign investors bought cattle or pasture land and planted trees. Land values held, due to the carbon credits received from planting the trees. Across the province, a cold winter with the late arrival of spring combined with a low snowpack has created uncertainty for the remainder of 2009.

The full report, including reports on individual provinces, is available at http://www.fcc- fac.ca/en/AboutUs/Media/news20091005_e.asp?main=6&sub1=media&sub2=newsreleases.

ESA Tip - Paying wages: All farm workers must be paid at least twice a month.

Hourly and salaried farm workers must be paid all wages within eight days of the end of the pay period.

Piece-rate harvesters may be paid at least 80 percent of total estimated wages owing at the middle of each month. All remaining wages must be paid within eight days of the end of the month.

Licensed Farm Labour Contractors must pay wages directly to the employee’s bank account.

Upcoming Meetings/Events:  November 13, 2009 – Minister of State (Agriculture) Jean-Pierre Blackburn, Abbotsford  November 16 and 17, 2009 – National SAWP meeting, Toronto  November 17, 2009 – BC Young Farmers’ - Family Business Workshop with guest speaker Jolene Brown. "The Facts of Life: When Family and Business Collide"  November 19, 2009 - COGA Seminar: “Strengthening agriculture and agri-food business' competi- tive advantage through improved value chain management”  January 27, 2010 – Agriculture and Food Industry Gala  January 28 to 30, 2010 – Pacific Ag Show.

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