Planting the seeds for a sustainable future - City of Kamloops

Planting the seeds for a sustainable future - City of Kamloops Planting the seeds for a sustainable future - City of Kamloops

11.07.2015 Views

Change in Farm EnterprisesThe local agriculture industry has shifted over the years (Figure 6) and will continue to change. The most notable shifts are inginseng and cattle and calves. The ginseng sector was declining prior to 2006 and has continued to decline since then, fromfour producers with 91 ha in 2006 to one producer with undisclosed production in 2011. Total cattle and calves have declined -production dropped 10.5% and producer numbers dropped 25.4%. Potatoes are reported as "field crops"; the area inproduction was not reported in either Census period but producer numbers increased. Vegetable production declined butproducers numbers increased (i.e. farms became smaller).Figure 7 – Changes in the number of producers and total production between 2006 and 2011 for various types of farms(Source: 2011 and 2006 Census of Agriculture Area P)HorsesPigsSheep & LambsCattle & CalvesGreenhouseNursery, sod, Xmas treesPotatoesFruits, nuts, berriesVegetables-18.5%-19.3%-53.7%-10.0%-21.6%-17.9%-10.5%-25.4%12.5%20.0%20.0%-16.7%0.0%-41.5%-10.3%-10.7%50.0%ProductionFarms107.7%The trend identified inFigure 7 indicates the needto better support farming inthe community and region.While the economy has arole to play, strategies andactions that the City cansupport will be identified bythe AAP to help reverse thenegative change inproduction.-75.0%-75.0%Ginseng-100.0% -50.0% 0.0% 50.0% 100.0% 150.0%CITY OF KAMLOOPS 32

ECONOMICSArea Gross Farm ReceiptsGross farm receipts for Area P, for the last two census periods, are shown in Table 7. The data is from the production yearprior to the Census. As such, it may not represent average returns for area farms. Losses reported on farms that are notprofit-oriented tend to pull the average down.Table 7 – Gross Farm Receipts and gross margins - comparison of 2011 Census (for 2010 production year) and 2006 (for 2005 production year).Area P Gross Farm Receipts Operating Expenses Gross Margin (Total) Gross Margin (%) Gross Margin (average/farm)2011 $12,580,026 $12,868,260 -$288,234 -2.91% -$1,1622006 $20,011,871 $21,349,006 -$1,337,135 -6.82% -$4,892The decline in Gross Farm Receipts is likely related to the following:BSE, or Mad Cow Disease, impacted the beef industry significantly during the two Census periods. In 2005, Albertacow/calf returns were estimated at plus $60; in 2010, cow calf returns were approximately $-60 per head; andGinseng production declined steadily, starting before the 2005 production year.ProfitabilityThe following sections describe a number of factors that affect profitability of farmsand how the City of Kamloops' agriculture sector fares compared to other areas.Farm profitability, or lack thereof, is the major underlying issue facing agriculture.If farms were more profitable, many of the other issues identified in this planningprocess would not exist.Farm profitability or lack thereof, is themajor underlying issue facing agriculture. Iffarms were more profitable, many of theother issues identified in this planningprocess would not exist.CITY OF KAMLOOPS 33

ECONOMICSArea Gross Farm ReceiptsGross farm receipts <strong>for</strong> Area P, <strong>for</strong> <strong>the</strong> last two census periods, are shown in Table 7. The data is from <strong>the</strong> production yearprior to <strong>the</strong> Census. As such, it may not represent average returns <strong>for</strong> area farms. Losses reported on farms that are notpr<strong>of</strong>it-oriented tend to pull <strong>the</strong> average down.Table 7 – Gross Farm Receipts and gross margins - comparison <strong>of</strong> 2011 Census (<strong>for</strong> 2010 production year) and 2006 (<strong>for</strong> 2005 production year).Area P Gross Farm Receipts Operating Expenses Gross Margin (Total) Gross Margin (%) Gross Margin (average/farm)2011 $12,580,026 $12,868,260 -$288,234 -2.91% -$1,1622006 $20,011,871 $21,349,006 -$1,337,135 -6.82% -$4,892The decline in Gross Farm Receipts is likely related to <strong>the</strong> following:BSE, or Mad Cow Disease, impacted <strong>the</strong> beef industry significantly during <strong>the</strong> two Census periods. In 2005, Albertacow/calf returns were estimated at plus $60; in 2010, cow calf returns were approximately $-60 per head; andGinseng production declined steadily, starting be<strong>for</strong>e <strong>the</strong> 2005 production year.Pr<strong>of</strong>itabilityThe following sections describe a number <strong>of</strong> factors that affect pr<strong>of</strong>itability <strong>of</strong> farmsand how <strong>the</strong> <strong>City</strong> <strong>of</strong> <strong>Kamloops</strong>' agriculture sector fares compared to o<strong>the</strong>r areas.Farm pr<strong>of</strong>itability, or lack <strong>the</strong>re<strong>of</strong>, is <strong>the</strong> major underlying issue facing agriculture.If farms were more pr<strong>of</strong>itable, many <strong>of</strong> <strong>the</strong> o<strong>the</strong>r issues identified in this planningprocess would not exist.Farm pr<strong>of</strong>itability or lack <strong>the</strong>re<strong>of</strong>, is <strong>the</strong>major underlying issue facing agriculture. Iffarms were more pr<strong>of</strong>itable, many <strong>of</strong> <strong>the</strong>o<strong>the</strong>r issues identified in this planningprocess would not exist.CITY OF KAMLOOPS 33

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