P.E.I.'s 2024 farm income hike bucked national trend, but federation says all is not rosy
‘Our farmers are being squeezed from both sides,’ says P.E.I. Federation of Agriculture
For Soleil Hutchinson, 2024 was quite a successful season.
The co-owner of Soleil's Farm in the central P.E.I. community of Bonshaw said the warm spring allowed the mixed vegetable farm to start planting earlier than usual. The weather stayed favourable throughout the summer, and there were no major storms to disrupt the season.
On top of that, she said demand was strong for the produce the farm supplies to retail stores, restaurants and directly to Island consumers.
With a strong harvest and high demand, the farm earned more money in 2024 than the year before, Hutchinson said.
"2024 was a much better year than 2023 for Soleil's Farm," she told CBC News.
National farm income down, but not on P.E.I.
New preliminary data from Statistics Canada suggests Hutchinson's experience is not unique on P.E.I.
Realized net income for Canadian farmers — the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind — dropped by $3.3 billion nationwide to $9.4 billion in 2024, a decline of more than 25 per cent. This was the largest percentage decrease in realized net income since 2018.
However, realized net income actually increased in P.E.I. and Nova Scotia. On the Island, it rose to $105.9 million, up 1.7 per cent from the previous year.
But while the latest Statistics Canada numbers may appear positive, the P.E.I. Federation of Agriculture says they don't tell the whole story. The reality is that many P.E.I. farmers struggled with significant challenges over the past year, according to executive director Donald Killorn.
Killorn said P.E.I. bucked the national trend when it comes to farm incomes partly because the Island has a strong agricultural sector and continues to invest in it.
"Generally, we're moving in the right direction," he said. "Prince Edward Island has made solid investments in agriculture, and we have a solid industry, and we're insulated somewhat from that."
The province's agriculture industry is relatively small, but Killorn said it remains highly effective and has a lot to be proud of, from its strong potato sector and the Island-owned dairy processor ADL to Atlantic Beef Products — Atlantic Canada's only federally inspected beef processing plant.
Challenges remain
However, Killorn said P.E.I. farmers still face growing pressures, particularly when it comes to the rising cost of fertilizer, fuel and other essential supplies.
"Access to these inputs is becoming difficult to assure, so with supply and demand — I mean, it just continues to rise," he said.
According to Statistics Canada, farm operating expenses on P.E.I. rose to $647.8 million in 2024 — a 3.4 per cent increase compared to 2023.
On the output side, Killorn said profit margins for farmers are "very tight." He pointed to Canada's new grocery code of conduct, which came into effect this month, as one effort aimed at addressing some of those pressures.
The code is a set of guidelines for fair and ethical dealing between major grocery retailers and their suppliers, aiming to create a more level playing field, resolve disputes and protect smaller suppliers and independent grocers.
"It's a systemic issue. Our farmers are being squeezed from both sides. We have to, as a country, ensure that we're supporting farmers in a real way," Killorn said.
He also noted that while P.E.I.'s agriculture industry continues to grow, it's not keeping pace with inflation.
The future lies in data?
Looking ahead, Killorn said improving farm profitability on the Island will require better data collection and analysis.
"The future of agriculture and the future of profitability is in the ability to collect, analyze, manage data, get that data off the farm, but then get it back onto the farm," he said.
"Prince Edward Island farmers need to be equipped with the opportunity to collect their own data, own their data, and have that analyzed — and then the insights that are derived from that need to belong to the Prince Edward Island farmers."
He said the federation can support farmers who want to take part by helping break down their operations at a sub-field level to better understand where profit and loss factors occur.
"The profit and loss maps that we're developing are well beyond what we've seen in the marketplace thus far, and we think that the ability to collect the necessary data to feed into that system is the future of profitability."
I think people don't understand how much risk farmers actually have to take on to just farm.— Soleil Hutchinson
He also called on post-secondary institutions like the University of Prince Edward Island to step up and contribute more to research and innovation in agriculture.
"Our academic partners absolutely have to be doing more to equip the next generation and equip our industry with the workforce it needs to drive further profitability," Killorn said.
For Hutchinson, last year may have been a strong one, but the challenges are ever-present.
From unpredictable weather and rising costs to global trade uncertainty, Hutchinson said there's no shortage of risks that threaten farmers' incomes. That's why she supports the idea of more financial assistance for farmers, including something like a basic income model.
"If they have a year that is not a good growing season, then at least they know that their basics would be covered. It's peace of mind," she said.
"I think people don't understand how much risk farmers actually have to take on to just farm."
With files from Island Morning