Farms adapting to a new reality

By Peggy Brekveld, Vice-President, OFA

If there is one thing that has remained constant throughout the COVID-19 pandemic, it’s that farmers are experts at adapting to evolving situations and persevering through uncertainty. The resiliency of Ontario farmers to move forward and conduct business in a crisis environment was exemplified in the Ontario Federation of Agriculture’s (OFA) latest survey results.

As part of our continued efforts to monitor and gauge the impact of this public health crisis on Ontario farm families and the agri-food sector, OFA has conducted a trio of surveys, beginning with a benchmarking assessment in March followed by a phase two study in April. Earlier this month, OFA launched its phase three survey resulting in 620 member responses.

Despite the endless list of challenges and disruptions caused by COVID-19, farmers have been adapting their businesses to survive in a new reality. The latest results revealed that farmers have progressed past anticipating changes to their businesses and finances and are now experiencing these effects firsthand. The survey showed that 80% of members have experienced a change in their operations. The financial impact continues to rank as the top concern for members with 88% indicating that their farm businesses have suffered negative financial impacts. Other top concerns included a reduction in consumer spending, the potential of a global recession, trade issues, and supply chain disruptions.

Farm businesses are working tirelessly to manage their operations through financial losses. The survey shows that 61% have experienced lost revenue and consumer spending, 57% are facing reduced cashflow and unable to conduct business as usual, 30% do not have the ability to expand their operations, and 16% are facing financial struggles that will prevent them from paying their bills.