Planting the seeds for a sustainable future - City of Kamloops

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Gross Margin ($ per farm)Gross MarginsFigure 8 – Estimated break even for farms in the region. Chart shows average gross farmTable 7 above shows the reported gross farm receipts, operatingreceipts per farm in each Census area in the TNRD and gross margin per farm.expenses and the resulting gross margin (i.e. gross receipts minus$20,000operating expenses which are expenses directly related to production) in$15,000Area P. Basically, it indicates that margins are only -2.91%, but are animprovement from -6.82% in 2000. On average, producers have not$10,000recovered their operating costs during the production years reported inthe past two Censuses.$5,000Scale of Farm OperationsFigure 8 shows the importance of economies of scale. The dots on thechart represent the average gross margin per farm in each of the electoral$-$--$5,000-$10,000$100,000 $200,000 $300,000areas within the TNRD. Average gross margins increase with revenue perfarm. The best fit trend line indicates that gross margins tend to benegative for farms with sales below about $100,000 per year. Of course,-$15,000Average Gross Farm Receipts ($ per farm)there are exceptions. Intensive, small-scale operations producing high-value products can show profits with lower overall sales.Farm Size (Revenue)Farm size, in terms of revenue generated, is extremelyvariable. The vast majority of the economic activity occurson the large farms. The 26 largest farms (10.5% of the 248farms) generate at least 68% of the area’s gross farmreceipts as seen in Figure 9. The 123 smallest farms(49.6%), with sales of less than $10,000 per year,cumulatively generate less than 6.7% of the area’s grossfarm receipts.30.00%25.00%20.00%15.00%10.00%5.00%0.00%2011Census6.7% 7.9%5.5%11.5%19.1% 21.9% 16.4%10.9%0.0%Figure 9 – Estimated Contribution to Gross Farm Receipts by Farm Size (revenue) (Source:Census of Agriculture Area P).CITY OF KAMLOOPS 34
Intensity of ProductionFigure 10 shows the average revenue per hectare (of ALR land) generated by farms in several regional districts in the BCinterior.The TNRD is among the least intensively farmed areas.Increased revenue per hectare might be achieved withmore: irrigation; intensive use of fertilizers and other inputs; higher value crops;land clearing; andproduction of supply managed products orintensive livestock.$4,000$3,500$3,000$2,500$2,000$1,500$1,000$500$-$128 $347 $1,585 $1,935 $416 $1,035 $3,703 $60Farm size, in terms of revenue generated, is extremelyvariable. The vast majority of the economic activityoccurs on the large farms. The 26 largest farms (10.5%of the 248 farms) generate at least 68% of the area’sgross farm receipts. The 123 smallest farms (49.6%),with sales of less than $10,000 per year, cumulativelygenerate less than 6.7% of the area’s gross farm receipts.Figure 10 – Intensity of land use based on gross receipts per hectare of land in the ALR.On Farm CapitalThe total market value of farm capital increased by 22% between 2006 and 2011. The average increase in the value of farmcapital was $376,794 over 5 years or $75,359 per year. This is important for a couple of reasons:There is an old axiom that says, "farmers live poor, die rich". Income from operations has been negative over the past twocensus periods. The average is a net operating loss of $1,162 per year. If the increase in farm capital is included, the averagebecomes a gain of $74,167 per year. Farmers have been able to use, and have used, these gains in capital values to borrowmoney for operations, effectively allowing them to continue to operate at a loss.It essentially creates a succession issue. There is not enough operating cash flow in the farm to pay long-term debt. Newfarmers therefore must buy in with very high levels of equity or have non-farm income to pay the mortgage.CITY OF KAMLOOPS 35
Page 1 and 2: CITY OF KAMLOOPSPlanting the seeds
Page 3 and 4: ACKNOWLEDGEMENTSThis report was pre
Page 7 and 8: WHY DO WE NEED AN AGRICULTURE AREA
Page 9 and 10: EXPECTED OUTCOMESThe overarching ex
Page 11: (l) an activity, other than grazing
Page 14 and 15: Due to topography, existing growth,
Page 16 and 17: At one time, there were 16 dairies
Page 18 and 19: Urban agriculture connects urban dw
Page 20 and 21: There are two general types of cons
Page 22 and 23: Ranchers in Kamloops depend on Crow
Page 24 and 25: Plant Hardiness ZonesThe Plant Hard
Page 26 and 27: The Importance of Ranch and RangeKa
Page 28 and 29: AGRICULTURAL CAPABILITYFigure 3 - C
Page 30 and 31: Table 5 - Owned and Rented (Owned v
Page 32 and 33: Livestock Use (by parcels) 74% (150
Page 34 and 35: Change in Farm EnterprisesThe local
Page 38 and 39: Table 8 - Value of Farm Capital and
Page 40 and 41: cooling activities would increase t
Page 42 and 43: MarketingMarketing is both a hindra
Page 44 and 45: PROVINCIAL AGRICULTURAL TRENDSThe 1
Page 46 and 47: Canadian Food Inspection AgencyThe
Page 48 and 49: Farm Practices Protection ActThe Fa
Page 50 and 51: The Land Conservancy of BCThe Land
Page 52 and 53: Zoning By-law No. 5-1-2001A section
Page 54 and 55: Dam inspection obligations;Environm
Page 56 and 57: SUPPORTING INDUSTRY DIVERSIFICATION
Page 58 and 59: Trespassing; andClimate change.Due
Page 60 and 61: 20. Agricultural or Multi-Purpose E
Page 62 and 63: CITY OF KAMLOOPS 60
Page 68 and 69: processed-product producers in the
Page 70 and 71: Support Services andProducts for Fo
Page 72 and 73: MAPSMap 1 - Food Producer Map - Cit

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