Farming at the Edge
The Financial Health of British Columbia’s Commercial Agricultural Sector
Farming at the Edge examines the financial realities facing BC’s commercial farm sector. The report finds that while commercial farms continue to generate positive operating income, they face higher costs, growing debt pressures, and weaker financial resilience than producers in other major farming provinces.
Key Findings
Commercial farms are profitable
BC’s approximately 4,100 commercial farms generated about $770 million in operating income in 2024.
The missing middle is in decline
The greatest challenge is the decline of the “missing middle”: approximately 1,150 mid-sized commercial farms generating between $500,000 and $2 million in annual revenue.
Four structural cost disadvantages
BC producers face structural disadvantages related to feed, labour, interest, and land costs.
Land wealth is not cash flow
Rising farmland values have increased balance sheet wealth but have not improved operating profitability or resilience.
From the report: farm debt has grown faster in BC than in any other province
BC farm debt rose 286 per cent between 2004 and 2024, to $11.6 billion. BC is the only major agricultural province with no provincial lender or loan-guarantee backstop of its own.
BC’s farm debt grew 45 points faster than the national rate, and 33 points faster than the next province.
Growth in total farm debt, 2004 to 2024. Statistics Canada Table 32-10-0051-01, via the report, page 17
Why It Matters
The report concludes that the future of BC food production depends on the long-term viability of commercial farms, particularly the mid-sized operations that are most exposed to today’s structural pressures and best positioned for future growth.
Policy Priorities
The report identifies six areas for action.
- 1
Farm Classification Reform
Current agricultural statistics and many programs treat all farms the same, regardless of size or commercial activity. The report recommends a more practical classification system that distinguishes between sub-commercial, commercial, and large commercial farms. This would improve data accuracy and help governments better target programs and support.
- 2
Modernize Business Risk Management Programs
Programs such as AgriStability have not kept pace with the cost pressures facing BC farms. The report recommends reviewing how rising expenses, particularly interest costs, are reflected in program design to ensure support better reflects current operating conditions.
- 3
Strengthen Agricultural Financing
BC is the only major agricultural province without dedicated provincial agricultural lending infrastructure. The report recommends exploring tools that can improve access to capital, support farm investment, and increase financial resilience.
- 4
Address Labour Challenges
Labour shortages continue to be a significant challenge for many farms. The report calls for improved coordination of agricultural labour programs and expanded support for technology and automation that can help address workforce challenges while improving productivity.
- 5
Reduce Feed Cost Disadvantages
BC livestock and poultry producers face higher feed costs than competitors in other provinces due to geography and transportation requirements. The report recommends exploring measures that help offset this structural disadvantage and improve competitiveness.
- 6
Protect Farmland for Future Generations
The report highlights the importance of maintaining the Agricultural Land Reserve and exploring new tools that support farm succession while keeping farmland in agricultural production. As land values continue to rise, ensuring farmland remains available for future farmers is critical to the sector’s long-term success.
Together, these measures would strengthen the resilience and competitiveness of BC’s commercial farm sector.
Download the report to explore the findings and recommendations shaping the future of BC agriculture.