The Business of
Farming
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Introduction
• Agriculture contributes more
than $11 billion to the
economy
• About 1 job in 5 is related to
agricultural sector of the
economy
• Agriculture is important
because it is a result of the
export of grains and
vegetable oil products from
the Prairies
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Introduction
• In the 1850’s, Canadians spent about
25% of their income on food; today they
spend only about 11% on food,
including meals eaten outside the home
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Land: The Basic Resource
• Land is a renewable resource, in the
sense that, if properly used, it can
support new crops year after year
• Land can also be classified as a nonrenewable resource because, there is a
limted amount of it available - especially
land that is suitable for farming
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Land: The Basic Resource
• In the 60’s and 70’s the government
surveyed most of the land of southern
Canada and divided it into seven
classes
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• Class 1: deep soils, no climatic or land limitations excellent for farming (0.5%)
• Class 2: good farmland - no serious climatic or land
limitations (1.8%)
• Class 3: good farmland, but some climatic or land
limitations that make some farming activities impossible
(2.7%)
• Class 4: land is at the “break-even” point for commercial
agriculture because of a short growing season, poor soil
conditions, or other significant limitations (2.7%)
• Class 5: serious limitations for agriculture - short growing
season, hilly, thin soil, poor drainage - land may be used
for grazing, hay (3.7%)
• Class 6: similar to class 5, but limitations are more
severe. Can be used for grazing; crops cannot grow
successfully (1.8%)
• Class 7: no capability for farming or was not classified
(86.8%)
Land: The Basic Resource
• Canada has a total land area of
approximately 921 500 000 ha - huge amount
of land, but only 13% of this area is suitable
for any form of agriculture
• Canada is the second largest country in the
world, but much of the land has been used up
or is threatened by urban development
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Types of Farming
• The type of farming that takes place in a
particular region is determined by
natural and economic factors
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Types of Farming
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Natural Factors
• Soil
• The amount of precipitation
• Length of the growing season
Types of Farming
Economic Factors
Cost of land - if farmland is expensive, high
value agricultural goods will need to be
produced
Transportation Costs - if close to its markets vegetables and milk can be produced - if a
farm is far from its markets, less perishable
crops such as grain or cheese
Competition - if there is an oversupply of
products, prices will drop and reduce farm
incomes
Types of Farming
Two types of farming:
• Intensive Farming
• Extensive Farming
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Types of Farming
Intensive Farming
• Common to densely populated areas (Ontario
and Quebec)
• Farms tend to be small, but require large
investments in labour and machinery to
produce high profits
• Commonly used for producing fruits,
vegetable, dairy, poultry, and hogs
• Many of the products are perishable and
need to be processed or transported to
markets quickly
Types of Farming
Extensive Farming
• Usually done in areas where population
density is low
• Land is plentiful and less expensive
• Farms tend to be large
• Highly mechanized and requires few workers
• Common in the Prairie provinces and parts
located away from major cities
• Cattle farming and ranching, grain and oil
seed growing
• Products are usually less perishable or
processed quickly
Agricultural Issues Today
• In the 1880’s, 80% of the Canadian
families farmed the land
• Today with the increase of modern
equipment and mechanization, the size
of farms declined in numbers
• Why the decline?
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Agricultural Issues Today
Why the Decline?
• Irregular hours
• Children of farmers seek other opportunities
• Once retired, who will buy their farms
• Few young people can afford the capital cost of
buying a farm
• Start up costs are very high
• Annual costs are high - veterinary, pesticides,
equipment, vehicle repairs, seeds etc.
• Debt or bankruptcy may result if prices of arm
products do not increase faster than their cost of
production
• Damage of land
Damaging the Land
Damage to the land occurs in three ways:
• Poor farming
• Erosion
• Contamination
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Damaging the Land
Poor Farming
• Damage occurs because of heavy leaching soil loses nutrients because of excessive
irigation
• Repeated use of heavy equipment compacts the soil and loses its ability to
absort water
• Unplowed land - chemicals used to control
weeds
Damaging the Land
Erosion
• Heavy wind and water action erodes the soil away blows the topsoil away
Contamination
• The use of fertilizers, herbicides and pesticides
• Herbicides can be harmful to wildlife and humans
• Pesticides will kill insects that destroy fruit,
vegetables and grains etc. but also kill many
successful species of insects
Sustainable Agriculture
• Sustainable agriculture - refers to
agricultural production that can be
maintained without harming the
environment
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Sustainable Agriculture
• The following solutions can be sought in
maintaining and sustaining agriculture:
• Lightweight tires that do not damage
wet soil
• A variety of farming methods that are
use natural fertilizers
• Proper cultivation practices