Blog – Agriculture Equipment and Farming Income – Analysis and Commentary – November 2022
Farmers continue to face many challenges including labor shortages along with higher input costs related to fuel, feed, electricity, etc.
Grocery store profits continue to be a focal point. Little has been said about the product mix area as well as how profits are shared with pension funds and capital investment.
Farmers have no issue with adopting technology if that technology is dependable.
Vertical farming is being promoted as solution. Vertical farming requires access to adequate water as well has issues with electricity and capital needed to build out a vertical farming infrastructure.
2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young@ca.ibm.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
YouTube - https://www.youtube.com/user/youngercga1968/videos
3. Agenda
North American AG Equipment Sales
Commodity Prices
AG Prices – Canada
Preliminary Crop Estimates – Canada
Oilseeds
Energy Prices
Carbon Tax
Food Prices
Hospitality Sector
Farming Income
Top Farming States
Food Processors
Technology and Farming
Government and Farming
Debt
Rail Car Loading
Summary
8. Hospitality Sector
Blog – Food Services and Hospitality Sector – Canada and the World – August 2021
The food and beverage sector continue to face many challenges.
https://www.slideshare.net/paulyoungcga/hospitality-and-food-service-sector-canada-august-2021
9. Blog – Food Prices
Blog - With Demand Soaring, Booming Food Sector Turns to Food Contract Manufacturing
As demand for food products increases nationwide, businesses are frequently turning to food contract
manufacturing companies to meet that increased need rather than adding additional capacity internally.
Anticipating that demand will eventually return to normal levels, food producers can work with an experienced
co-packer to enhance their operational efficiency without needing to make substantial asset or equipment
investments in-house that may sit unused later on.
Sourcing for food contract manufacturing on the Thomasnet.com platform is up 133% year over year and up
277% over last quarter averages.
Source - https://www.thomasnet.com/insights/with-demand-soaring-booming-food-sector-turns-to-food-contract-
manufacturing/?ecms_id=03a9e6f7-1a59-4bb8-88af-
2bd41a26780d&ecms_short=ART5898&doc_type=ted_video_article&parent_id=8250e2ab-aea8-49ec-ad90-
fe73f30b2122&utm_content=featuredvideo&linktype=title&channel=email&campaign_type=thomas_industry_update&ca
mpaign_name=tiu211004&utm_campaign=tiu211004&utm_medium=email&utm_source=thomas_industry_update&tinid
=221763045
My work - https://www.slideshare.net/paulyoungcga/food-and-beverage-analysis-and-commentary
10. Farm Income
Farming Income in Canada has been struggling for the past few years -
https://www150.statcan.gc.ca/n1/daily-quotidien/191126/dq191126b-eng.htm
USA farm income and aid - https://www.agriculture.com/markets/newswire/us-farm-income-expected-to-
rise-in-2019-but-only-because-of-government-aid
AG subsidies - https://www.agriculture.com/news/business/world-farm-subsidies-hit-2-billion-a-day
Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (8.1 percent) to $111.4
billion in 2021. In inflation-adjusted 2021 dollars, net farm income is forecast to decrease $12 billion (9.7
percent) in 2021 after increasing $37.8 billion (44.2 percent) in 2020 to its highest level since 2013. Despite
this decline, 2021 net farm income would be 21 percent above its 2000-19 average of $92.1 billion.
https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-
income-forecast/
19. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf
20. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf
21. Top Farming States
Source - https://www.statista.com/statistics/196114/top-10-us-states-by-number-of-farms/
22. Food Processors
Source - www.fao.org or https://www.globenewswire.com/news-release/2019/09/04/1910664/0/en/Food-Processing-Market-to-Exceed-4-Trillion-
by-2024-Key-Trends-Analysis-Opportunities-to-Succeed.html
23. Plastic Greenhouses / CO2
35% of China’s vegetables come from plastic green houses -
https://www.nextbigfuture.com/2021/03/plastic-greenhouses-provide-35-of-chinas-vegetables.html
Greenhouse farming - https://gulfnews.com/uae/environment/popularity-of-greenhouse-farming-
options-on-the-rise-1.842642
South Korea - https://www.hortidaily.com/article/9306173/overview-vegetable-horticulture-in-south-
korea/
Global Market - https://www.databridgemarketresearch.com/reports/global-plastic-greenhouse-market
Ontario/Greenhouses - https://windsor.ctvnews.ca/ontario-government-investing-3-6-million-toward-
innovation-projects-in-the-greenhouse-sector-1.5285128
NZ and the Middle East - https://www.freshplaza.com/article/9307955/new-zealand-has-a-huge-tech-
opportunity-in-the-middle-east-s-growing-horticulture-industry/
24. Technology and Farming
AI is transforming farming - https://www.forbes.com/sites/cognitiveworld/2019/07/05/how-ai-is-transforming-
agriculture/#1fa34bec4ad1
AI and farming - https://customerthink.com/the-role-of-artificial-intelligence-in-agriculture-sector/
IBM and farming - https://farmtario.com/news/ibm-expands-artificial-intelligence-platform-into-agriculture/
RPA and Farming - https://blog.accubits.com/robotic-process-automation-in-agribusiness/
IBM and Expert Farming - https://www.prnewswire.com/news-releases/farmplan-using-ibm-pairs-to-predict-blackgrass-
weed-before-it-damages-crops-301151067.html
AG App - https://www.techrepublic.com/article/farming-assistant-app-agrolly-wins-ibms-call-for-code-contest/
Smart farming - https://farmingfirst.org/2020/10/transforming-agriculture-through-smart-farming-from-data-ownership-
to-open-data/
Telecom/Farming - https://ca.finance.yahoo.com/news/agriculture-analytics-market-reach-2-133100885.html
Blockchain and Food Protection - https://blog.trustbix.com/how-blockchain-can-support-food-supply-chain-management
25. Government / Farming
Elimination of trade barriers - https://www.slideshare.net/paulyoungcga/what-is-next-for-for-global-
trade-protectionism
More emphasis on local supply chain management solutions -
https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
Tax fairness and regulatory reforms - https://www.slideshare.net/paulyoungcga/does-the-world-need-
a-wealth-tax
Government provides direct subsidies and/or loans to farmers
Government needs to revisit all their programs to ensure various programs are efficient and effective -
https://www.slideshare.net/paulyoungcga/market-food-protein-market-analysis-and-commentary or
https://www.oag-bvg.gc.ca/internet/English/parl_lpt_e_934.html or https://thetyee.ca/Opinion/2016/03/08/BC-
Carbon-Tax-Failure/
Automation can help with automation of audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-
performance-base-auditing
30. Summary
All levels of government need to work together to better support the agriculture and food processing
sector
The world needs to unite to fixed issues with WTO
Farm input costs continue to plague farmers around the world
Water, forest, and land management continue to face world’s population growth
More balanced between environmental and economic policies.
Better land use policies
Blog – Agriculture Equipment and Farming Income – Analysis and Commentary – November 2022
Farmers continue to face many challenges including labor shortages along with higher input costs
related to fuel, feed, electricity, etc.
Grocery store profits continue to be a focal point. Little has been said about the product mix area as well
as how profits are shared with pension funds and capital investment.
Farmers have no issue with adopting technology if that technology is dependable.
Vertical farming is being promoted as solution. Vertical farming requires access to adequate water as
well has issues with electricity and capital needed to build out a vertical farming infrastructure.
Loblaw, Metro
Results show we aren't taking advantage of inflation Financial Post.pdf
Climate change
demands more land for solar, industry leader says - Los Angeles Times.pdf
USDA ERS -
Highlights from the Farm Income Forecast.pdf
“It costs me the same
to farm now as it did before” the inputs crisis from an agroecological perspective - Equal Times.pdf
Sustainable
Agriculture Strategy Discussion Paper - agriculture.canada.ca.pdf
Meet the Two Biggest
Enemies of Indoor Farming - The Food Institute.pdf
5 Things Silicon
Valley Gets Wrong About Agriculture.pdf
U.S. agriculture
agency extends climate funding to small farmers Reuters.pdf
Input prices remain
top of mind as farmer plans for 2023 - Brownfield Ag News.pdf
U.S. Machinery
Industry Analysis.pdf
Murphy, Baldwin,
Bipartisan Group of Senators Call on FDA to Support Farmers' Goals of Reducing Enteric Methane Emissions.pdf
Market Trends
Report – December 2022 & January 2023 - Grain Farmers of Ontario.pdf
Rainwater harvesting
can address water crises in cities.pdf
5 Food Shortages
That Will Impact Your Wallet This Holiday Season Nasdaq.pdf
Food Prices Aren't
Showing Signs of Slowing. Here's How Communities Are Stepping In - CNET.pdf
OFA pleased with
strong support for broader fuel tax exemption for farmers - Ontario Federation of Agriculture.pdf
Why the Jury is still
out on Robotics and Autonomous Intelligence (AI) In Agriculture – Urban Ag News.pdf
We need a
compromise on the Greenbelt, plus other Hamilton Community News letters to the editor TheSpec.com.pdf
Insights on
Population Growth and Agricultural Land Use - Population Education.pdf
U.S. Food Industry
Analysis.pdf
Economist debunks
supermarkets’ claim they're not profiting from food inflation.pdf
1. Farming Income - https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-
finances/highlights-from-the-farm-income-forecast/
2. Input costs - https://www.equaltimes.org/it-costs-me-the-same-to-farm-now#.Y5hKS33MI2w
3. Sustainable farming - https://agriculture.canada.ca/en/about-our-department/transparency-
and-corporate-reporting/public-opinion-research-and-consultations/sustainable-agriculture-
strategy-discussion-paper
4. Vertical farming - https://foodinstitute.com/focus/meet-the-two-biggest-enemies-of-indoor-
farming/
5. Land and Renewable - https://www.latimes.com/environment/newsletter/2022-12-01/want-to-
solve-climate-change-open-more-land-to-solar-industry-leader-says-boiling-point
6. Expert farming - https://www.entrepreneur.com/science-technology/5-things-silicon-valley-
gets-wrong-about-agriculture/439229
7. Green transition - https://www.reuters.com/world/us/us-agriculture-agency-extends-climate-
funding-small-farmers-2022-12-12/
8. Farming input costs - https://brownfieldagnews.com/news/input-prices-remain-top-of-mind-as-
farmer-plans-for-2023/