The Agriculture sector in this province is on a collision course to disaster. Without immediate action by both federal and provincial government to step in and alter this course it will be too late to avoid this collision. This will spell the end of agriculture on PEI as we know it and with it, the Island way of life. Given that governments have recognized the need to support the fishing sector, the Federation is calling on government to do the same for Agriculture in the Atlantic region.
Increasing input costs of fertilizers, fuels and crop protectants are the highest they have ever been. This year’s crop is the most expensive ever to have been planted in PEI. The cost of production of an acre of potatoes this year is estimated at almost $3000/acre. The investment on a farmer producing only 100 acres of potatoes is $300,000. Yet prices continue to fall short of cost of production. Equity is eroding and land value is decreasing.
Consider for a moment that agriculture is a wagon wheel and all the spokes of the wheel represent the various important commodity sectors. Two of these spokes (the hog and beef sectors) are on the verge of fracture and collapse. What effect will this have on the remaining spokes that continue to support the agriculture wheel? They take on greater pressure and this pressure can only be sustained for so long before they weaken and the entire wheel collapses. The entire agriculture sector including primary agriculture and agrifood manufacturing on PEI combine for over 13 per cent of the Island’s GDP or well over $550 million to the Island economy. If the wagon wheel collapses, the Federation of Agriculture is asking; what will fill this void for the Island economy? What sights will the tourists see when farm buildings are abandoned and the rolling hills are covered in weeds and alders?
Staff and board members of the Federation have met on several occasions with Federal Minister of Agriculture Gerry Ritz in recent months and have heard his personal commitment to maintaining existing infrastructure for the agriculture sector in PEI and the Atlantic region. The Federation is calling on governments to step in and recognize the dire situation our livestock sector is facing and to take immediate and significant action by committing to financing the remaining livestock infrastructure before it is gone for good. Once the buildings are emptied and the farmers have moved on, the farm is gone and there is no bringing it back. Infrastructure is eroding at a frightening rate. Everyday more farmers are being forced out of business or selling production inventory, not putting crops in this year and closing doors.
A stabilization program for the livestock sector based on marketing requirements and quality standards in the Atlantic region is needed to ensure that farmers can receive an adequate return for their product which the market place will not provide. Our local food supply is reliant on the ability of farmers to maintain existing infrastructure and continue production of a safe, environmentally friendly, and healthy food supply.
The Agriculture sector is committed to working with government in development of this plan but we are calling on swift and significant commitments from the federal and provincial government before all hope is lost.
Ernie Mutch, President
PEI Federation of
Agriculture