Canadian farming industry

Before arriving at a conclusion on Canadian agricultural amongst different types of farmers. This distinction could be made by the banks between various types of farmers while evaluating their loan applications. Canadian heritage in agriculture depends on an integral role played by the traditional or life style farmers. The traditional farmers are alarmingly closing their hereditary agricultural business owing larger competition from larger farmers and increasing costs of inputs. In Canada, the rural migration is on increasing level since 1991. The average persons in general, who leave small town of rural area, possess higher educational qualification. It is clear that rural areas in Canada are not behind in terms of services and quality of work available.
Farmers are subject to variable weather conditions of natural disaster should save and keep investment during the period of profit so they may or do not become bankrupt during the period of downswings. Despite of assistance from organizations such as income disaster assistance program, the agricultural farmers ability to stand up their legs is not improving since the profit of small farmers are shrinking so quickly as the expenditure put on harvest grows every year. Revenues form farm products are not keeping pace with escalating cost of equipments, fertilizer, transportation and pesticides. The prices food items are quietly unrelated to the expenditure put in cultivating, transporting processing and selling the food.
Recent floods and droughts have made the established farmers to become debtors though they have borrowed money and invested the same in equipment and land. There are delays in getting government funds, which are in adequate to meet these types of natural calamities. There are no private insurance companies to cover insurance of farms from weather-related catastrophes. The small farmers are the looser of these natural calamities in rural Canada.
Like any other traders or businessmen, farmers can ensure long term growth and stability through proper planning in changing market conditions during the periods of floods and drought so that they may not depend on the assistance and support of government.
The banks are prepared to advance loans to farmers for expanding their farms or starting farms under close supervision of bankers to put the farmers on right path to success though great risk is involved. The bankers visit farms once in a year assess the progress of the investment by farmers. The farmers with a formal, viable business plan are likely to get funds form banks.
In farm field, many problems are attributed to Canadian consumers refusal to recognize and pay for value added to the products produced by the small farmers. Because of this, the farmers are not able recover their investments and expenses through sales which tends them to expect government subsidies to support them. The farmers are not in a position to bear the smallest price increase in power tariff. Ontario federation of agriculture are successful in lobbying in reduction of sales tax on farm products, working with county federations to reduce or remove municipal development charges on agricultural on to buildings, reduction in electricity charges.
In Canada there are