Based on that resolution, OFA will be re-acquainting both levels of government with the need to include beginning farmers in assistance programs. To be precise, the federal and provincial governments should allow beginning farmers to use a different process to determine eligibility for assistance programs. We’re asking for an industry average of annual net sales based on the size and type of their start-up years, when average net sales is the basis of income support initiatives. This adjustment will ensure that young farmers are eligible for support programs. Previously, they watched funding assistance flow to established farmers.

OFA became aware of the inequities faced by beginning farmers when we examined such programs as the Agri-Invest – Kickstart, and the Ontario Cattle, Hog, and Horticulture Payment programs. There has not been a satisfactory mechanism for getting fair support dollars to beginning farmers.

Farming is a highly capitalized venture, and beginning farmers carry a staggering debt burden as they enter the industry. The debts are related to productive assets, new technologies and investments that will make their operations efficient, safe and competitive.

When a market failure brings this group of farmers to the brink of failure, we need to close the cracks and offer the same hand up that we do to any other farmers. To move this process forward, OFA will recommend to the Ontario Ministry of Agriculture, Food and Rural Affairs that changes are needed to enable beginning farmers to get a Farm Business Registration number based on projections, as currently happens under the Farm Property Class Tax Rate Program. Currently, farmers must be able to show income tax records from the previous year, documenting at least $7,000 annual gross farm income to be able to register for a Farm Business Registration number. Without this, they are not allowed access to financial programs. We will also be asking OMAFRA to fund an information awareness system, to ensure eligible beginning farmers, are aware of government programs and how to apply.

Basic farm economics tells us that beginning farmers are more likely to need off-farm income in the early years of starting their farm business. This becomes increasingly true when expansion is part of the beginning farmers’ plan. OFA will work with the Canadian Federation of Agriculture and our Federal and Provincial levels of government to get the necessary changes to encourage beginning farmers – something essential to the future of Ontario’s agriculture sector.