2011 Census of Comparing to Division 11 (Edmonton Region) - - PowerPoint PPT Presentation

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2011 Census of Agriculture

Presented to Agriculture Services Board by: Economic Development and Tourism June 14th, 2012

This presentation is an overview of the data recently released by Statistics Canada. It is intended to give an understanding of how agriculture has changed. It has been prepared with the intention of looking for realistic agricultural opportunities for the

• future. It also assumes that that the data is accurate as reported by Statistics

Canada and their protocols. 2

Agenda

 Census Background  Statistical Overview

Comparing to Division 11 (Edmonton Region) Agricultural Region 5 (North Central Alberta) Alberta Canada 2011 to 2006 The Census of Agriculture is completed by Statistics Canada every five years. The 2001 Census was the basis for the “ Future of Agriculture Report” completed in

• 2002. For the basis of comparison we have compared the trends in Strathcona

County to those in Census Division 11, being the Edmonton Region, Ag Region 5, which is basically North Central Alberta and amalgamates Census Divisions 8, 9 and 11. We also compared to Alberta and Canada to get and understanding of how Strathcona County fits in to the agricultural economy. We compared the 2011 Ag Census to the numbers from 2006 in order to see trends.

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Topics

 Financial comparison  Farm and Farm Operator profiles  Revenue vs. Expenses  Farm Investment

Land and equipment

 Animal Type numbers  Crop type numbers We compare the profile of the farm operators, farm types and size, farm finances, animals and crop types. 4

Agricultural Census Timing

 2002 “Future of Agriculture Report” based

• n 2001 Federal Census of Agriculture

 Completed every five years by Statistics

Canada

 2011 released May 10, 2012  Comparable back as far as 1921

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Agriculture Region 5

This Map indicates Ag Region 5, which covers a very large area, from south of Red Deer, to the national parks, to North of Edmonton and east to Strathcona county’s boundaries. 6

Money Stuff – Strathcona County

64.84 Average Profit per Acre 5,657.32 Average Land and Buildings Per Acre $ 21,698 Receipts minus Expenses $ 116,440 Average Operating Expenses $ 138,139 Average Farm Cash Receipts 335 Acres Average Farm Size $ 2,080,602 Average Farm Capital $ 158,363 Average value of all farm machinery and equipment $ 1,893,087 Average value of land and buildings – all farms

This provides some data of averages for Strathcona County. This will be better illustrated in charts to follow. It does indicated that number are big to get into the farming industry.

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$1,893,087 $1,093,653 $1,761,402 $1,745,113 $1,858,980 $1,342,301 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 County_11 County_06 Division11_11 Ag 5_2011 AB_11 CA_11

Average Farm Values – Land and Buildings

This indicates the value of the land and buildings on Farms in the various

• jurisdictions. The average farm value has increased by $800,000 from the average

in 2006. 8

335 325 510 568 1168 778 200 400 600 800 1000 1200 1400 County_11 County_06 Division11_11 Ag 5_2011 AB_11 CA_11

Average Farm Size in Acres

The average farm in Strathcona County is small in relation to other jurisdictions. The average farm is about one third the size of the average Alberta farm and one half of the average size of a Canadian farm. The size of farms has been stable since 2006.

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$158,363 $134,560 $181,974 $187,205 $252,884 $201,438 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 County_11 County_06 Division11_11 Ag 5_2011 AB_11 CA_11

Average Equipment Value

The average investment in all farm equipment correlates somewhat to farm size. As Strathconas farms are smaller the amount and size of equipment is smaller. The average has increased 13% in 5 years. 10

$138,139 $113,480 $150,587 $175,984 $264,518 $248,199 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 County_11 County_06 Division11_11 Ag 5_2011 AB_11 CA_11

Average Cash Receipts

Farm cash receipts also relates to the size of farms. Strathcona County does relatively well on a per acre basis. We have seen a 22% increase over the five year period.

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$116,440 $102,102 $127,948 $146,459 $224,607 $205,080 $- $50,000 $100,000 $150,000 $200,000 $250,000 County_11 County_06 Division11_11 Ag 5_2011 AB_11 CA_11

Average Farm Expenses

Farm expenses have stayed in check with costs at about a 14% increase over the same five year period, creating a larger spread between receipts and expenses which is good news. 12

0% 20% 40% 60% 80% 100% 2011 2006 2001 1996 2011 2006 2011 2006 2011 2006 2011 2006 Strathcona County (CCS 485011052) Division No. 11 (CD 485011000) Agricultural Region 5 (CAR 485000000) Alberta (PR 480000000) Canada (1) Census Year \ Jurisdiction Percentage Over 55 35-54 Under 35

Farmer Age Profile

This chart indicates the age of farmers into three groups. As the investment to start farming is steadily increasing and the return on operational costs is challenged, it makes it financially difficult for young persons to start farming. This has lead to a signiicant change in the Farm Operator age profile. Over 56% of the Farmer

• perators are now over 55 Years old. This trend appears to be escalating, while the

percentage of “young farmers is now less than 5% with only 45 operators in this category compared to 160 twenty years ago.

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Average Farm Operator Ages

48.0 50.0 52.0 54.0 56.0 58.0 60.0 County_11 County_06 Division 11 Ag Reg 5 Alberta Canada Jurisdiction Age All Single Operator Multiple Operator

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Operators Per Farm

1.380 1.400 1.420 1.440 1.460 1.480 1.500 1.520 County_11 County_06 Division 11 Ag Reg 5 Alberta Canada Jurisdiction Age All Op

The number of reported farm operators shows a steady increase in the number of

• perators per farm which indicates that there are more people living on each farm.

As Strathcona County’s numbers are higher than other jurisdictions, it is likely due its proximity to off farm employment.

15 Now we will look at the animal figures starting with cattle. 16

44,569 37,134 36,560 28,751 21,888 31,774 33,498 34,912 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 1976 1981 1986 1991 1996 2001 2006 2011 Census Year Number of animals 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 # Farms # Animals

Alberta Cattle and Calf 35 Year Trends

Over the past 35 years the number of cattle on Alberta farms has decreased to about half of 1976 numbers in 2011. While the number of farms reporting cattle production has increased by about 10% since 1976 the number is down significantly from its peak in 2003 since BSE created its challenges to the Alberta Beef industry. We hope to see this trend reverse over the next decade.

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‐38.7% ‐31.0% Total cattle and calves (53) ‐35.7% ‐36.9% Bulls, 1 year and over ‐0.2% ‐18.2% Dairy cows ‐47.2% ‐42.4% Beef cows ‐44.5% ‐41.9% Total cows ‐39.1% ‐23.1% Heifers for dairy herd replacement ‐35.2% ‐28.9% Heifers for beef herd replacement 4.8% 3.3% Heifers for slaughter or feeding ‐18.7% ‐21.1% Total heifers, 1 year and over ‐14.5% ‐23.5% Steers, 1 year and over ‐43.4% ‐40.8% Calves, under 1 year

Animals Farms Cattle and Calves on May 10, 2011

Strathcona County Cattle and Calves 2011

Since 2006 there has been a downward trend in the cattle and producing farms in Strathcona County. Depending on the sub category, it appears to be a reduction of about 38%. 18

8,827 14,497 2,822 1,107 947 1,422 5,574 3,897 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1976 1981 1986 1991 1996 2001 2006 2011 Census Year Number of animals 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 # Animals # Farms

Strathcona - 9 farms - 587 Animals

Alberta Dairy Farm 35 Year Trends

Over the past 35 years the Dairy industry in Alberta has also seen significant changes with the average farm going from 11 animals in 76 to 85 in 2011. The number of animals appears to have flat lined over the past 10 years, however is about 50% of what is was in 1976.

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20,921 19,291 17,807 15,001 17,219 17,782 17,951 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1981 1986 1991 1996 2001 2006 2011 Census Year Number of animals 5,000 10,000 15,000 20,000 25,000 # Animals # Farms

Alberta Horse and Pony 30 Year Trends

The 30 year trend for horses on farms is much more stable. The number of animals has increased by about 20,000 or 14% over the past 30 years, while the number of farms reporting horses has decreased by 4200 or about 18%. This results in more animals per farm. While this does not likely include horse on acreages, it does show a trend. 20

Strathcona Strathcona

• 18.00%
• 16.00%
• 14.00%
• 12.00%
• 10.00%
• 8.00%
• 6.00%
• 4.00%
• 2.00%

0.00% 1 2 Jurisdiction % Change Canada Alberta Ag Div 5 Division 11 Strathcona Number of Animals t d Number of Farms R ti

Equine Changes from 2006 to 2011

Aligning with general economic conditions, the number of animals has also seen a similar decrease across all jurisdictions. The number of farms in Strathcona County reporting horse production has decreased by 13.5% over the past five years and the number of reported animals has decreased just over 16% over the same period. The average number of horses per farm has increased slightly to 9.25 per reporting farm.

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% County_11 Division11_11 Ag 5_2011 AB_11 CA_11 $3,500,000 and over $2,000,000 to $3,499,999 $1,500,000 to $1,999,999 $1,000,000 to $1,499,999 $500,000 to $999,999 $350,000 to $499,999 $200,000 to $349,999 $100,000 to $199,999 Under $100,000

Percentage of Farms by Total Farm Capital

The percentage of farms sorted by total farm capital is in general alignment with the rest of the region and the province of Alberta. Canada has a higher percentage of lower Capital farms that Alberta and the Region. 22

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% County_11 County_06 Ag 5_2011 Ag 5_2006 AB_11 AB_06 $3,500,000 and over $2,000,000 to $3,499,999 $1,500,000 to $1,999,999 $1,000,000 to $1,499,999 $500,000 to $999,999 $350,000 to $499,999 $200,000 to $349,999 $100,000 to $199,999 Under $100,000

2006 to 2011 Comparison of Total Farm Capital

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% County_10 Division11_10 Ag 5_2010 AB_10 CA_10 $2,000,000 and over $1,000,000 to $1,999,999 $500,000 to $999,999 $250,000 to $499,999 $100,000 to $249,999 $50,000 to $99,999 $25,000 to $49,999 $10,000 to $24,999 Under $10,000

Percentage of farms by Farm Cash Receipts

Strathcona County has over 60% of farms selling less than $25,000 worth of product and 90% selling less than a quarter million. This is a higher percentage than other measured jurisdictions. This would indicate that we have a lot of hobby type farms by people who enjoy the lifestyle of the farm life. 24

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% County_10 County_05 Ag 5_2010 Ag 5_2005 AB_10 AB_05 $2,000,000 and over $1,000,000 to $1,999,999 $500,000 to $999,999 $250,000 to $499,999 $100,000 to $249,999 $50,000 to $99,999 $25,000 to $49,999 $10,000 to $24,999 Under $10,000

2005 to 2010 Comparison of Farm Cash Receipts

Our comparison of 2005 vs. 2010 shows increased percentage of small income farms in out jurisdiction compared to Ag division 5 and Alberta Trends.

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% County_11 Division11_11 Ag 5_2011 AB_11 CA_11 3,520 acres and over 2,880 to 3,519 acres 2,240 to 2,879 acres 1,600 to 2,239 acres 1,120 to 1,599 acres 760 to 1,119 acres 560 to 759 acres 400 to 559 acres 240 to 399 acres 180 to 239 acres 130 to 179 acres 70 to 129 acres 10 to 69 acres Under 10 acres

Percentage of Farms by Farm Acreage Categories

This chart provided a clear message that we have a higher percentage of small hobby farms with 83% being less than 400 acres in area compared to 50% across the province. 26

• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% 60% 1 2 3 4 5 6 7 Percentage Change Canada Alberta Ag Div 5 Division11 County Dry Peas Oats Barley Canola Alfalfa Tame Hay Wheat 18 47 76 105 243 135 82

% Change in Farms Reporting Crops

As far as crop production, there appears to be a drop in the number of farms producing crops in about the 10 percent range. This appears to be a common

• thread. As the totla number of farms is also down this makes some sense. The

number of acres of production is shown on the next slide.

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• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% 60% 70% 1 2 3 4 5 6 7 Percentage Change Canada Alberta Ag Div 5 Division11 County Dry Peas Oats Barley Canola Alfalfa Tame Hay Wheat 4357 NA 13602 48540 22264 8706 43456

2006 – 2011 % Change in Crop Acreage

This chart indicates that wheat (10% - 4300 Acres) and canola (5% 2400 acres) are up in production in Strathcona county since 2006. All other crops are down slightly from 2006. 28

Greenhouse Change From 2006

• 20.00%
• 15.00%
• 10.00%
• 5.00%

0.00% 5.00% Change in Number Change in Square Footage Jurisdiction % Change Canada Alberta Ag Reg 5 Division 11 County

Green houses are also reported in the Census of Agriculture. While the number of Greenhouses has stayed the same at 23. The square footage of space in use have dropped 5% to 500,000 square feet. Over 90% of this space is used for Flowers with 4% used for vegetable production. Canada and Alberta have seen a slight increase in square footage overall.

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Thank you !

 We appreciate the time and opportunity to

present to you.

 Questions  More information available

Call Randy Richards, Manager, Commercial

Development at 780.464.8259

randy.richards@strathcona.ca This concludes our overview. Further information is available upon request. Please contact our office at the email address and phone number shown.