Canada’s food security is threatened by labor shortages

Labor shortages in the agricultural sector are limiting productivity and growth in that sector and putting Canada’s food supply at risk, warned a report published Tuesday by the Canadian Federation of Independent Business (CFIB).

According to data released by the CFIB, 74% of agribusiness owners are working longer hours due to a lack of employees and 61% have forced their employees to work more to compensate for staff shortages. Almost half (48%) had to turn down sales or deals, while 41% had their service offer reduced.

“We need policies that support our farmers and agribusiness operators to ensure the productivity and competitiveness of the sector,” CFIB Vice President of National Affairs Jasmine Gunet said in a press release.

“There should be a solution to the shortage of labor in agriculture. They limit the sector’s productivity and growth and put Canada’s food supply at risk.

For the majority of agricultural SME owners surveyed (94%), rising input prices are also affecting their business, while 83% lament problems caused by supply chain disruptions.

According to the CFIB’s Business Barometer, small business owners in the agriculture sector were least optimistic about the future of their business over the past six months.

Four out of five farmers said they would not advise anyone to start a business because of labor shortages. This situation is particularly worrisome because of the large number of workers retiring and the large number of young people turning to agricultural occupations. We need to ensure that agriculture remains an attractive career option for the next generation of farmers and agribusiness operators,” said CFIB Senior Policy Analyst Taylor Brown.

The CFIB will help these businesses, among other things, reduce their tax burden, particularly payroll taxes and the federal carbon tax. The federation also recommends simplifying immigration programs and processes to bring temporary foreign workers into the country more quickly.