Media Clipping — Wednesday, April 25, 2001, The Halifax Daily News

Nova Scotians must pay more to keep farms afloat - report

Nova Scotians will have to pay more for the food they eat if they want to keep many of the province’s farmers in business, a new report says.

Rising debt loads coupled with stagnate earnings has forced many farmers to take second jobs or cut corners on safety and soil protection, according to the study.

Farm Viability in Nova Scotia was produced by GPI Atlantic, a non-profit research group that is constructing an index of sustainable development for Nova Scotia. The report is the first in a series that will examine the industry.

The report warned that if trends continue, major parts of the province’s agriculture industry will disappear, such as apples, hogs and beef.

Researchers found that, from 1971 to 1999, the ratio of total farm debt to net farm income in Nova Scotia tripled, jumping from 300 per cent in the early 1970s to more than 900 per cent today.

There are about 4,000 farms in Nova Scotia.

Since 1971, there has been a 46 per cent decline in net farm income despite an increase in farm output and total farm cash receipts.

The report said the fall is because of farmers paying more for farm inputs, such as feed, labour and fertilizer, while prices paid for farm products have hardly changed.

Low farm-gate food prices have made farmers more dependent on government payments for survival when subsidies are declining.

Subsidies paid to farmers are actually compensation for market failures" to provide farmers with adequate prices for their products, the reports argued.

Every major indicator of farm viability is in decline," said report author Jennifer Scott.

One way to keep a viable agriculture industry in Nova Scotia is to pay farmers more for the food they produce."

Supply-managed industries like dairy and poultry that can control prices have more income security and a higher return on investment.

Organic farmers who market their goods directly to consumers can also get a better price for their products, Scott said.

GPI Atlantic recommended indicators of farm economic viability be tracked annually as indicators of genuine progress" for Nova Scotia agriculture.

Future reports by GPI, to be released in the coming months, include assessments of soil quality, pesticide use, nutrient use, livestock yield, biodiversity, employment, community resilience and trade in farm products.

Copyright © 2001 The Daily News