Abstract
Agriculture sector played a major role in the economic and political progress of Canada. Particularly since the Western rural areas adapted latest techniques for agriculture and farming; the country experienced an economic boom. Reforms and policies enacted by the government to facilitate this sector have contributed too in the economical growth of country. Family farming is now a good business in Canada and although the number of these farms is small, yet they have established themselves in the rural communities and are facilitating the country on both national and international level. If more such farms are built up, then there will be significant impacts over the economy and the exports of the country.
Economies play a vital role in the prosperity and development of any country. The activities carried out in business, agriculture, education, health and safety account for a country’s economic growth. Usually, economic growth is associated with the investment in urban sector only which attracts people from all parts of the country, particularly from rural areas. Thus it is assumed that the rural farms and agriculture sector does not play a key role in the economic development of any country. However, if we look at the economic development process of developed countries, it will become evident that it is agriculture which has played its part to peak their economical growth. This sector suffers much more than any other but provides a contribution which no other sector can do (Meijerink and Roza, 2007). In this essay, the focus will be on Canadian economy and its development over the last century through appropriate agricultural reforms.
Since the beginning of last century, the social reforms in the rural community of Canada started making their impacts over the economy. Whether the reforms were implemented by the local community or at a national level, these bring Canada to the stage of economical development which is vivid now in the new century. Profound transformations have been observed within the context of rural society, their relationships, modes of living and in the formation of new landscapes which are a result of agricultural farm making in different ways. Other than social transformations, there have been significant changes in food industries of Canada since 1940. As the economy started to grow exponentially and new and better technologies came in front, transformations have been observed in the production, processing, packaging and distribution of food items from rural areas, which brought huge income to the agriculture sector. Employments were generated and the sector developed economically, participating in the national economic development on an equivalent basis. As the cost of transportation reduced effectively, links were established between the near and far of the country, thus providing fresh food items to every home and by propelling local farmers to establish their own small or large farms for larger productions. All these factors, together with the reforms made at national level, played their part in developing the agriculture and rural community of Canada and to make them sustained and satisfied (Parkins and Reed, 2012).
There have been some significant shifts in Canadian agricultural policies that seem to reflect the larger patterns of economic and political development in Canada. Wheat and grains constituted the largest part of agricultural sector, followed by meat and livestock, dairy products and poultry. Therefore, the Department of Agriculture which was formed in 1868 concentrated on every aspect relating to agriculture and induced policies for its economical growth. Policies about food quality and inspection, certifications and regulations over the use of certain fertilizers, research over soil viability and climate and other assistance to the farmers have been implemented by the Department of Agriculture over the course of years. The primary focus was on Western Rural areas which were developed lately but since the soil was arable and the climate was favorable, more food was expected from this area of the country. Initially, as early as in 1897, the department tried to fix the freight rates for the export of grain, but as soon as it was realized that the farmers are not making enough for themselves due to lack of competition, the traditional system of grain-handling was implemented again. This shows that Canadian government was not simply interested in implementing new policies; rather it took care of the interest of its farmers and provides them with the maximum financial security (Kubota, 2007).
A shift was observed in the policy when the same rule was enacted in 1925 again. This time, the market was grown and there was an air for competition for the exporters. Therefore, local farmers were provided a big market for their products and therefore the sector grew at a large scale. Also, major exports to other countries brought huge income back at home and not only served the rural community but also participated in the national economical growth. During the WWI and particularly in Great Depression Era, agriculture was the sector which suffered the most. But the government tried to provide relief to its farmers by passing PFRA act in 1935 and PFAA act in 1939. Both these programs tend to rehabilitate the impoverished rural community by providing them a bundle of facilities. During WWII, government induced Feed Grain Freight Assistance program in 1941 and the Farm Improvement Loans Act of 1944 for providing subsidies and loans to local producers who were sending their commodities for the ally troops. Hence, the Canadian government realized the importance of agriculture sector and the series of effective policies indicate its intention towards making agriculture a pillar of economical growth (Skogstad, 1987).
Apart of these reforms, many other reforms were proposed and implemented which took the agriculture sector of Canada at a peak at which it propelled the overall economical growth of the country. These included Agricultural Products Marketing Act of 1949, Prairie Grain Advance Payments Act of 1957, creation of Agricultural Stabilization Board in 1958, Farm Credit Act of1959, Agriculture Rehabilitation and Development Act of 1961, Rural Economic Development in 1966, creation of the Canadian Dairy Commission in 1966, Western Grain Stabilization Act in 1976 etc. All these agricultural policies and reforms were introduced to facilitate the agriculture sector, particularly the western rural community so that the large area of land and crops should be utilized properly within and outside the country (Skogstad, n.d).
With signing of Free trade Agreement between US and Canada in 1989, new horizons opened for the Canadian Agriculture and Farm sectors. The agrifood exports including livestock and dairy products jumped from 30% in 1984 to 55% in 1993. With the help of all these reforms and modifications, along with the introduction of modern techniques in agriculture, the rural west community sustained and improved itself and participated in country’s economy. They tend to attract foreign economies for their crops and cattle and for this purpose, they established large capital-intensive farms. Since industrialization, a large number of people migrated to cities and the relative number of farms declined. However, the investment in this sector is now higher than the past. Currently, a total of $925,000 is the recorded capital value in these farms all over Canada, with annual sale of worth $25,000 or more (Michele and Veeman, n.d).
Educational assistance regarding farm management has enabled the people to manage their farms in a well modified way, much better than in the past. Thus they have become able to earn large revenues for themselves and for their country. Since the area suitable for farming purposes is small, the number of farms is small too and therefore the employment in this sector is very rare. However, it is good to note that the majority of farms are owned by families, so there is a good scope of family earning through these farms. According to an estimate, only 2% of the entire population is associated with this profession. Currently, there have been a total of 480,903 farms all over Canada. Although these statistics seem small in number, yet the Western rural communities of Canada are well settled and are not bothered by financial or economic burdens. Agriculture has its significance in Canadian economy, and if the sector is expanded and people settle their own family farms, it is expected that this will certainly boast the economy and will play its role as one of the beneficial sectors (Michele and Veeman, n.d).
References
Kubota, O. (2007). Adjustment Options and Strategies in the Context of Agricultural Policy Reform and Trade Liberalisation. OECD Food, Agriculture and Fisheries Working Papers, No. 4, OECD Publishing. doi:10.1787/124462320780
Meijerink, G. W., & Roza, P. (2007). The role of agriculture in economic development. Wageningen: Wageningen UR.
Michele and Veeman, T. (n.d). Agriculture and Food. The Canadian Encyclopedia. May 29, 2013. Retrieved from <http://www.thecanadianencyclopedia.com/articles/agriculture-and-food>
Parkins, J., & Reed, M. (2012). Social Transformation in Rural Canada. UBC Press.
Skogstad, G. D. (1987). The politics of agricultural policy-making in Canada. Toronto: University of Toronto Press.
Skogstad, G. D. (n.d). Agriculture and Food Policy. The Canadian Encyclopedia. May 29, 2013. Retrieved from <http://www.thecanadianencyclopedia.com/articles/agriculture-and-food-policy>
