Read part two of a Future of Work and Learning mini-series looking at the state of the workforce across key western Canadian industries. This second issue on Canada’s agriculture sector explores the challenge of attracting and retaining the next generation of agricultural workers, what could be deterring people from the sector and where strategic, future planning can help.
Big Picture: Declines in agriculture employment
Over the past 10 years, the overall number of employed individuals has increased across the country and across Western Canada. However, the share of those working in agriculture has decreased. This is not a new problem.
For the 2022 season alone, the Canadian Agricultural Human Resource Council (CAHRC) estimates that unfilled positions led to a loss of $3.5 billion in sales for the sector and that the labour gap will continue to widen. While automation helps, such innovations can be cost prohibitive, take time for wide-scale adoption and require talent who understand both the technology and how to apply it in an agricultural context.
With the industry now facing increased pressure to diversify products and trade partners in the face of market uncertainty with Canada’s two largest agricultural trading partners, China and the U.S., this has become a pressing problem. The sector needs a robust labour force to be able to meet current and future challenges. While immigrant labour has helped address shortages, understanding the domestic workforce context and labour flows, and why people are not entering or staying in the sector is also important.
Western Canada’s changing agricultural workforce
The overall proportion of people working in agriculture across Western Canada is in decline.
Source: Statistics Canada Table 14-10-0466-01
This decrease is in part due to the increase of other types of jobs and new sectors, but this trend holds true even in those western Canadian areas that have traditionally had the highest shares of their population employed in agriculture.
Source: Statistics Canada Table 14-10-0466-01
Part of the issue is that the agriculture workforce is aging and younger generations are not filling the gap; even those aged 24-54, the key working age population, are leaving the sector.
Source: Statistics Canada Table 14-10-0023-01
Generational career shifts
Previous Canada West Foundation research on talent attraction in Alberta and Manitoba shows that there are a range of contextual, economic and social reasons, alongside quality of life, that can help explain why people may choose to stay in a particular job or location.
Location and sectoral context influence whether individuals want to enter or remain in a particular job. Rural youth aged 15-24 may want to stay close to family or friends, so they may opt for a school that is close to home and continue to work on the farm while pursuing their studies. Others may choose to move to larger urban centers or even to other provinces for social reasons, quality of life, or post-secondary options.
Once they complete school, youth may choose another path if they cannot understand the full economic picture of what a farm career could mean or what career progression will look like. For those 24-54 who are set to take over or in a position to expand farm operations, they may be more influenced by economic factors, such as property values, rather than quality of life or other social considerations.
For farmers who want to retire, they may need to sell their operations to ensure they have the liquidity that they need to support their next stage of life. Land values and debt loads can be a significant factor in that decision.
Food for Thought: Strategic planning
While conversations involving both family and business dynamics can be difficult for people of any generation, these strategic planning sessions are essential to mapping out the best path forward for farmers, families and the farms themselves. Just like in other businesses, lack of succession planning can lead to talent loss as “the next generation is left in limbo […] and may be forced to sell because an agreement can’t be reached.” There are also significant taxation implications, which earlier planning can help address.
For individuals who are not taking over farm operations, these strategic conversations can also help them think about where they might best contribute to the wider sector with their skills and interests.
Strategic planning is just one way to help individuals choose or remain in agricultural careers. Governments, industry associations and educators are also taking steps to help youth understand what a future in agriculture career can look like, especially for those who are new to the sector.
Together, these efforts are all helping bridge that generational gap which is contributing to labour challenges across the sector. Mentorship can support the younger generations as they explore career opportunities on the farm, but also in business and investment, research and innovation, transportation and logistics, and governance and policy. This type of support would go a long way toward ensuring the next generation is well positioned to help the sector meet current and future challenges.
This edition of The Future of Work and Learning was compiled and written by Stephany Laverty, a Senior Policy Analyst with the Canada West Foundation.
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