Survey Results

In spring 2023, the Union des producteurs agricoles (UPA) unveiled the results of a survey on the effects that inflation, rising production costs, and soaring interest rates are having on the financial situation of Quebec farms. These results confirmed that agriculture was more impacted than other sectors by the unfavourable economic situation. One year later, a new version of the same survey confirms that the situation is worsening and that the issues that are causing producers to become fed up—whether economic, territorial, climatic, or environmental—continue to have a growing impact on the profitability of thousands of farm businesses and their ability to feed Quebecers.

According to the 3,552 producers who responded to the UPA survey last month, 42% of businesses reported a net loss (as opposed to 34% in 2023), and 52% are at risk of failing to meet their financial obligations (41% in 2023). The picture is even direr for next-generation farms (67%).

The survey also tells us that 11% of businesses plan to shut down operations, either temporarily or permanently, within the next 12 months. This planned closure is much more common in priority RCMs, in remote regions, and on smaller farms.

The fragile situation of all these businesses, exacerbated by growing farm debt ($27.2 billion in 2022, an increase of 123% since 2012), persistent inflation, and skyrocketing interest payments, is therefore further compromising the sustainability of our agriculture sector and, consequently, of the entire bio-food industry. Remember that the agricultural sector requires nearly $8 of investment to generate $1 in revenue, which distinguishes it from many other economic sectors.