High-Tech and Low-Skill Solutions are Needed to Maximize Canada’s Agricultural Output

Canada’s farmers are poised to lead the national economy to higher levels of prosperity, powered by technology, data and people. That’s according to a new report by the Royal Bank of Canada, which projects agricultural output could grow from the current $32 billion to $51 billion by 2030.

This rosy scenario is conditioned on policymakers and farmers making some key decisions, however. Left unaddressed, today’s labor shortage will become an even more serious issue, limiting the ability of farmers to plant and harvest. To make additional workers available, and to ensure that younger Canadians have the skills, ambition, and opportunities to become farmers and farm workers it is critically important that both the public and private sector be part of the solution.

Technology will be a key driver of the anticipated increase in agricultural output. Essential new technologies include robotics, data analysis and computer networking. One hurdle to adoption of new technologies is the limited capital available to many farmers, whose assets are tied up in the land and equipment they need for daily operations. Higher costs for basic items such as diesel fuel and fertilizer also limit the ability of farmers to purchase new computer hardware and software, or pay for the services of an IT professional.

Contributing to the labor shortage has been an exodus from many farming communities, especially by younger people. Many children in farm families are opting for careers away from their communities and off the farm. By 2030, 123,000 agricultural positions may be vacant, according to RBC’s projections.

Among those currently tilling the land, the demographic profile is aging quickly. The report notes: “By 2025, one in four farmers will be 65 or older, with 110,000 expected to retire in the coming decade. Meanwhile, fewer young people than ever are entering agriculture. One of the biggest challenges for policymakers will be among low-skilled labour roles, which are projected to account for 85,000 of the total shortages by 2030. The demand for such positions, which include fruit picking and planting, will become more acute in the short term – and more automatable in the long term. The transition will require a new approach to immigration and reskilling, among other policies.

“[Our report] highlights innovations in countries such as the Netherlands, Australia and Israel, where agriculture education is at the cutting edge of those countries’ innovation agendas, and calls on Canada to adopt a new mix of farm skills that is more data-focused, innovation-minded and diverse. Among the recommendations in the report is a national skills strategy, including a push for more young people to enter the sector.”

To help farmers overcome these obstacles and vastly increase agricultural production, the report urges that the federal government devise a national strategy that will bring together farmers, workers, industry groups and academics.

In addition, greater efforts should be made to recruit young Canadians into the agricultural sector, partly by exposing a wider range of students to the opportunities in the industry. The report urges immigration reform to increase the labour pool available to farmers, especially during the critical seeding and harvest seasons.

RBC also believes the government should take a more active role in speeding up the adoption of technological solutions. That includes: “Fulfill the federal commitment to provide high-speed Internet to the remaining 1.5 million rural and remote households within 10 years, giving them access to online learning and cloud computing.”