Why enter the agricultural system?

The emergence of new entrants in the berry and honey industries in Alberta

This eBook chronicles the experience of new entrants, including individuals with an agricultural background and those without any agricultural experience, within the Alberta context. This eBook specifically details the motivations of new entrants within the agricultural system in Alberta, entering the berry industry and the honey/beekeeping industry

The agricultural industry

There has been a remarkable increase in the number of new entrants into the small-scale agricultural industry. These new entrants to the agricultural system are “not just a handful of people with pie-in-the-sky ideas who decide to test and experiment with agriculture just to see what happens.” ⁽¹⁾ Many of these new entrants are strategic and earnest about entering the industry, taking into account the full responsibilities and risks associated with becoming entrepreneurs and farmers. ⁽²⁾ The increase in new entrants into the agricultural system has been coupled with the revaluing of agriculture within society through economic development and greater emphasis on social capital, regional development, environmental conservation, and food quality/nutrition. ⁽³⁾

In Alberta, new entrants can be grouped into three categories: ⁽¹⁾ continuers pursuing succession farming but shifting the family-owned operations to berry production or honey production; ⁽²⁾ new entrants from outside the agricultural system acting on their genuine interest in pursuing a career in horticulture or beekeeping after completing high school; and ⁽³⁾ new entrants from outside the agricultural system acting on their genuine interest in pursuing a career in horticulture or beekeeping later in life rather than immediately after completing high school.

The first category includes individuals who were connected to family-owned land where different forms of agricultural production were previously conducted. This includes horticulture farming, livestock farming, grain crop farming, and even llama/wool farming. The current generation does not want to sell off the land and therefore, decides
to pursue farm succession instead. This process involves the continuers examining various agricultural industries and determining that small-scale berry production or honey production was the best fit. For example, the current location of the family farm might be best suited for U-pick operations and agritourism due to its proximity to large urban consumer bases and their desire to accommodate family farm operations within their professional work schedules (in the case of berry producers).

The second category of individuals are those who begin entering the agricultural system after completing high school. They pursue several different avenues to achieve this goal, including attaining an agriculture-related degree from a university, attending the horticulture program at Old’s College, taking part in an apprenticeship program, or working on a farm owned by a previous owner. Regardless of the avenue taken, these individuals become the first in their families to purchase and own farmland in Alberta.

The third category comprises individuals who act on their genuine interest in pursuing a career in horticulture or beekeeping later in life and not immediately after completing high school. This involves pursuing an interest in a career change or an additional side job/hobby while still utilizing prior acquired skills, especially in the disciplines of business, finance, and marketing. These new entrants act upon the fluid changes in their circumstances and pursue the opportunities that present themselves.

Motivations to enter the berry and honey industries

The series of actions taken to become a successful farmer are often gradual and long drawn out. According to estimates, on average, it takes more than 10 years for an individual to become an established farmer from the time they officially decide to start farming in Canada. ⁽¹⁾ Motivation to pursue the activity is a prerequisite to becoming a successful small-scale local producer, beyond which the aspiring farmer must be afforded the opportunity to do so and possess the tenacity to overcome any challenges they experience in the process.

In Alberta, an individual’s motivation to enter the berry or honey industry is unique and often difficult to conceptualize due to its complexity. Each farmer shares more than one motivation, often involving emerging circumstances and enabling factors allowing for one opportunity to evolve into another. However, in general, farmers often share two overarching motivations for entering or continuing within the honey or berry industry within the agricultural system: ⁽¹⁾ the motivation to produce food and, in some way, contribute to the agricultural food system, and ⁽²⁾ the entrepreneurial motivation to earn a profit.

The passion to contribute to the agricultural system is a critical motivation to enter the industry. ^(4-6) Often, such a personal factor is overlooked when considering other enabling factors that affect new entrants entering the agricultural industry, such as capital, experience, and skills. However, as reiterated by Pond and Moore (1954), “in order to start farming, a man must have love and ability for farm work. He must be willing to give up pleasures or the time he would have for pleasure in some other job for the joy of seeing things grow … I believe some capital is necessary, but that courage, [ambition], and faith in the future are some of the best assets a young farmer can have.” ⁽⁷⁾ The berry producers and honey producers emphasize their passion, coupled with their faith in the future of the agricultural system in Alberta. This is tied to their expressed passions concerning promoting the province’s native berry species to consumers, promoting the nutritional value of berries, and playing a role in addressing various issues, such as environmental sustainability, local and safe food production, bee health, and the disruption in global food supply chains through their production.

Empirical evidence also highlights the correlation between motivation and passion for contributing to the agricultural system, which are connected to emerging ideas regarding how new entrants innovate to operate their businesses. ^(4,6) There is a great passion for agroecology and working on the land to restore the land and natural livestock (such as restoring the native honey bee population). ⁽⁸⁾ Farmers also have a great passion to reconnect directly with consumers and to be more present as an operation within the local community context. Some farmers are passionate about direct marketing and consumer education (i.e., promoting the nutritional value of berries or introducing varieties that are not native to the Canadian palate). ⁽⁹⁾

The Importance of understanding the motivations of new entrants

Understanding the motivations behind entry into the agricultural system bears policy relevance to the future of the agricultural industry. (10) These factors play a role in determining the number of new entrants and their choice of operations, including sector (livestock, horticulture, etc.) and production practices (sustainable agriculture, organic production, small-scale production, etc.).

Motivations also influence the types of support that new entrants may require after making the decision to go into farming. For example, if the decision was supported by previous business experience, these new entrants may not require financial, legal, or business-related assistance, as opposed to operational training. Motivations also play a key role in some farmers transitioning operations or diversifying their operations and becoming new entrants in different industries within agriculture. Furthermore, the role motivation plays in the growth of new entrants into the agricultural system has been closely connected to institutional implications for farming. ⁽¹¹⁾ The institutional factors hindering potential pathways into farming despite motivations may correlate with the success of the farming retention phenomenon occurring internationally. Therefore, it is crucial to consider “whether a strong boost by way of public policy may shape the transition from ideas [and motivations] to reality.” ⁽¹⁾

Common experiences faced by new entrants

Land access is the most common reason that beginning farmers (individuals within the second and third categories) quit pursuing their berry or honey operations. A critical factor is that the transition toward a system that supports new entrants into the agricultural industry is impeded by increasing land prices. ⁽¹²⁾ These land prices have been driven up by investors focused on alternative land use planning strategies, such as residential development, and have resulted in land prices that exceed the net profits that farmers can earn from the land through agricultural operations. In Alberta, the price of land was expected to increase by 6% in 2020, followed by a 3.6% increase in 2021. ⁽¹³⁾ The decreasing rate of new farmers entering the industry has also been connected to low expected profits, increasing capital costs, and more sustainable urban career opportunities. ⁽¹⁴⁾

However, the entrance of new and younger farmers into the agricultural system has been noted as desirable, as they are more innovative, entrepreneurial, and adaptable, and can make the agricultural system more competitive, sustainable, and viable. ⁽¹⁴⁾ Efforts have already been made through the European Union Rural Development Policy (2007-2013) in mobilizing the transition of new and younger farmers into the system. The policy employs several measures to increase the rate of new entrants into the industry during the succession process. New farmers receive help in transforming their family farms into separate business entities, innovation incentives to better prepare for anticipated agricultural policy changes, and investment subsidies. ⁽¹⁵⁾ Retirement policy strategies have also been suggested. This includes reducing the costs and taxes associated with farm transfer and reducing or subsidizing the investments necessary to modernize farm assets and meet new requirements. Alternative strategies have been suggested, such as increasing farmers’ pension rights and land matching programs, as well as providing access to credit for individuals interested in farming and for small-scale farmers, which could help overcome the barriers associated with land access. ⁽¹⁶⁾

References

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