Canada’s ag industry continues to grow

Nov 15, 2017

Industry on track to meet Budget 2017 export goal

Staff Reporter

Farms.com

Farmers may be pleased to hear that the country’s “agricultural sector continues to show economic growth,” according to a news release.

Agriculture and Agri-Food Canada (AAFC) released the results earlier this week in their annual report, An Overview of the Canadian Agriculture and Agri-Food System.

In fact, Canada exported $56 billion in agriculture and agri-food products last year.

This valuation means that the industry is on track to reach the Budget 2017 goal of “grow(ing) Canada’s agri-food exports to $75 billion by 2025,” the release said.

In addition to expanding exports, the sector also generated $111.9 billion in Gross Domestic Product (GDP), which accounts for 6.7 per cent of the country’s total GDP, according to the release.

When calculating GDP in agriculture, farm cash receipts are one of the primary components, Craig Klemmer, Farm Credit Canada’s principal agricultural economist, told Farms.com.

“Farm cash receipts are the value of the output (price and quantity) from the agricultural sector,” he said.

As GDP measures value added domestically, farm cash receipts include products that are sold in both domestic and export markets, whether the product is imported or made domestically.

On average, these receipts grew by 5.8 per cent annually between 1971 and 2016 in Canada, according to the release.

Overall, the industry seems to have a promising future.

“The Advisory Council on Economic Growth identified agriculture as one of eight sectors with great potential for growth, given the large natural endowment of water and arable land, distinctive record of accomplishments in research, and exceptional base of companies and entrepreneurs,” said Klemmer. (The Council was established in March 2016 to provide advice to the federal government on future actions and policies, according to the Government of Canada website.)

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