Ontario PDF

ONTARIO
GRAINS and OILSEEDS

Hay - www.imagemontage.com/index.php?q-Kingston
VALUE CHAIN STUDY
Soybeans - http://www4.agr.gc.ca/
July 8, 2009
Winter Wheat - http://hardy.ca/gallery/v/OutDoor/winter-wheat.jpg
Grain Production - www.hkrl.com/grainproduction.html
PLANSCAPE
Building Community Through Planning
Planscape Inc.
104 Kimberley Avenue
Bracebridge, ON P1L 1Z8
T: 705-645-1556 F: 705-645-4500
Regional Analytics Inc.

2371 Heslop Street
Burlington, ON L7L 6N5
T: 905-332-8967 F: 905-332-0671
EXECUTIVE SUMMARY

The Ontario Grains & Oilseeds Safety Net Committee is an umbrella organization representing the Ontario
Soybean Growers, Ontario Corn Producers’ Association, Ontario Wheat Producers’ Marketing Board1, Ontario
Canola Growers’ Association, Ontario Coloured Bean Growers Association, Ontario White Bean Producers
Marketing Board, and the Seed Corn Growers of Ontario. The committee was formed to represent the
common interests of grains and oilseeds producers in Ontario. As part of this mandate, the committee
commissioned this study to document the historic, present and future role of the grains and oilseeds industry
in the economy of Ontario.

In preparing this study, the authors encountered challenges with the available statistics. The grains and
oilseeds industry occupies a fundamental position in the agricultural value chain in Ontario. However, a
significant amount of grains and oilseeds production is not captured in monetary activity measures such as
gross farm receipts (GFR) and farm cash receipts (FCR). This is due to the fact that most grains and oilseeds
producers generate other agricultural products that use grains and oilseeds output as ‘on‐farm’ input. Since
the product consumed on farms in not included in gross farm receipts and farm cash receipts statistics, this
practice can undervalue the significance of the entire provincial grains and oilseeds industry. However, as an
input to other production, grains and oilseeds are fundamental to the success of agriculture. In this study, to
account for the discrepancy between cash value and production value, two measures of the sector’s
contributions were used:
• Farm cash receipts as generated by Statistics Canada; and
• Value of production as generated by the Ontario Ministry of Agriculture Food and Rural Affairs.

The authors are confident that the methods used for the accounting of any anomalies in values are reliable
and reflective of industry trends and may err on the conservative side of values.

Based on productive value, the economic impact analysis confirmed that in Ontario, $3.136 billion of annual
grains and oilseeds production generates:
• $2.13 billion in direct impact;
• $4.62 billion in indirect impact;
• $1.76 billion in induced impacts; and
• $1.40 billion in labour income;

for a total annual economic impact on the Ontario economy of $9.9 billion.

Based on farm cash receipts, the economic impact analysis confirmed that $1.874 billion of grains and oilseeds
production in Ontario generates:
• $1.27 billion in direct impact;
• $2.76 billion in indirect impact;
• $1.05 billion in induced impacts; and
• $839 million in labour income;

for a total annual economic impact on the provincial economy of $5.9 billion.

The analysis conducted confirmed that the total output multiplier of 2.74 generated by the grains and oilseeds
sector is relatively propulsive. Each dollar of annual output from the Ontario grains and oilseeds sector
stimulates $2.74 of output from all linked industries in the provincial economy. The lower estimate produced
1
The process to transition the Ontario Soybean Growers, Ontario Corn Producers” Association, and Ontario Wheat Producers Marketing Board into the
Grain Farmers of Ontario began on December 12, 2008.
II ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY
through farm cash receipts also illustrates that the grains and oilseeds sector is a very significant component of
the provincial economy and generates major economic activity within it.

The grains and oilseeds industry has an extensive history in Ontario. The moderate Great Lakes climate and
rich glacial soils of southeastern Canada provide an excellent growing environment for coarse grains and
oilseeds and their production has been part of the agricultural profile of the area throughout its history.
Today, the grains and oilseeds industry continues to be a critical component of the Ontario economy and the
backbone of agriculture. The extent of the reach of the grains and oilseeds industry is evidenced by the total
amount of acres farmed. The Statistics Canada total for grains and oilseeds farmland in 2006, based on
number of farms classified as grains and oilseeds was 4,230,169 acres. Using figures for seeded and harvested
area, the total is 8,636,333 acres seeded; 8,395,000 area harvested. In 2006, there were 13,310,216 acres of
farmland reported by Statistics Canada for Ontario in total; therefore grains and oilseeds commodities
occupied 66% of Ontario farmland in 2006. The economic impact from grains and oilseeds production
quantified in this study is generated solely from primary production which continues to dominate agriculture in
Ontario.

Grains and oilseeds is a sector with multiple linkages to other forms of primary agricultural production and to
the large food processing sector. Because of these linkages, grains and oilseeds also plays a significant role in
the agri‐food value chain thereby enhancing its impact. This component of the provincial economy contributes
34.2% of national agriculture and food processing Gross Domestic Product which in turn represents 8% of
national Gross Domestic Product. According to the Ontario Ministry of Food and Rural Affairs, Ontario’s agri‐
food sector accounts for more than 640,000 jobs and is worth $25 billion annually, second only to the
automobile sector when it comes to overall impact in the provincial economy.

A stable grains and oilseeds sector is critical to the stability of other portions of the value chain. Fluctuations
impacting this sector will impact both other aspects of primary production and the agri‐food sector. Volatility
in one sector inevitably has an impact on other parts of the system. Due to the significant size and influence of
the grains and oilseeds sector, the province and its residents as a whole would be impacted if the sector
experiences negative pressures. Therefore it is essential that the industry be assisted in addressing the issues
that could negatively affect it. To ensure stability, issues associated with price fluctuations and market
volatility need to be addressed. A review of the price profile for grains and oilseeds over the past forty years
confirms that prices for the commodities has either stagnated or fluctuated significantly while the cost of
inputs has continued to rise.

The Ontario grains and
oilseeds sector competes
effectively in international
markets and in terms of
efficiency gains, has kept
pace with, or exceeded, the
gains made by its closest
competitors. This increasing
efficiency and productivity is
critical to the sector’s
prosperity because
commodity prices have
remained stagnant over the
past 40 years even in the face
of escalating input costs.
PLANSCAPE INC. iii

As a fundamental component of the agricultural community, the grains and oilseeds sector is subject to the
challenges and issues facing all producers. It is also subject to trends that are specific to the sector. Farmland
values, age profile, commodity prices, safety nets, capital costs, production costs, international competition,
the environment, productivity, and farm size are all examples of the categories of issues and/or trends
affecting the industry.

The issues and trends affecting the grains and oilseeds sector also present opportunities. By taking advantage
of the linkages to the agri‐food sector, producers can benefit from emerging technologies and changing
markets. Grains and oilseeds grown in Ontario are critical inputs for food processing industries, and the
availability of locally‐grown commodities is a key anchor and attraction for food processing investment and
employment in Ontario. A healthy grains and oilseeds sector is also critical to the development of the
alternative fuels industry – which has become a key element in Ontario's environmental strategy going
forward. Opportunities that have been identified and examined in this report include: emerging markets,
changing consumer trends, bioproducts, processing, biotechnology, research and development, organics,
geospatial technology, bioeconomy, nutraceuticals and functional foods, local food movements and local
ethnic markets.

The characteristics of the various commodities that comprise the grains and oilseeds sector confirm its depth
and diversity. In Ontario, the grains and oilseeds industry has grown to be a critical component of the
economy, impacting food processing, alternative fuels, and playing a major role in the agri‐food value chain.
This report confirms that grains and oilseeds has always been and continues to be an essential part of
Ontario’s economy. It is fundamental to Ontario agriculture and supports the healthy lifestyle enjoyed in the
province. It is a sector that should be valued and supported.

IV ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY
Ontario Grains and Oilseeds Value Chain Study

EXECUTIVE SUMMARY ................................................................................................................. i
TABLE OF CONTENTS .................................................................................................................. v
LIST OF FIGURES ..................................................................................................................... vii

CHAPTER 1 INTRODUCTION
1.1 Background and Purpose ............................................................................... 2
1.2 Study Objectives ............................................................................................ 3
1.3 Audience........................................................................................................ 4
1.4 The Study Team ............................................................................................. 4
1.5 The Study Area and Parameters ..................................................................... 5
1.6 Report Structure ............................................................................................ 5
1.7 Research Methodology .................................................................................. 6

CHAPTER 2 BACKGROUND OF THE ONTARIO GRAINS AND OILSEEDS INDUSTRY IN ONTARIO
2.1 Historical Development .................................................................................. 9
2.2 Commodity Breakdown ............................................................................... 21
2.2.1 Oilseeds ...................................................................................................... 22
2.2.2 Grains .......................................................................................................... 26
2.3 Conclusion .................................................................................................. 35

CHAPTER 3 PROFILE OF THE GRAINS AND OILSEEDS SECTOR IN ONTARIO
3.1 Area of Production ....................................................................................... 37
3.2 Levels of Production..................................................................................... 41
3.3 Regional Distribution ................................................................................... 46
3.4 Value of Production ..................................................................................... 55
3.5 Number of Farms ......................................................................................... 59
3.6 Land Tenure ................................................................................................. 60
3.7 Ontario’s Role Nationally and Internationally ............................................... 61
3.7.1 National Production ..................................................................................... 61
3.7.2 Ontario Exports ............................................................................................ 62
3.7.3 Imports ........................................................................................................ 68
3.8 Conclusion ................................................................................................... 71

CHAPTER 4: THE GRAINS AND OILSEEDS INDUSTRY ROLE IN ONTARIO’S ECONOMY
4.1 Examining the Structure of the Ontario Grains and Oilseeds Sector .............. 73
4.2 Economic Impact Methodology .................................................................... 74
4.3 The Development of a Provincial Economic Impact Model ........................... 74
4.4 Measuring the Impact of the Grains and Oilseeds Industry in the
Province of Ontario ...................................................................................... 75
4.5 The Results .................................................................................................. 77
4.5.1 Total Output Multipliers............................................................................... 77
4.5.2 Total Economic Impacts ............................................................................... 79
4.5.3 Direct, Indirect and Induced Impacts ............................................................ 83
4.6 Conclusion ................................................................................................... 87
IV ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009

CHAPTER 5 GRAINS AND OILSEEDS ROLE IN THE COMMUNITY
5.1 Grains and Oilseeds and the National Economy ........................................... 89
5.2 Grains and Oilseeds and the Provincial Economy.......................................... 89
5.3 Grains and Oilseeds and the Rural Economy................................................. 91
5.4 Comparison with Closest Competitors.......................................................... 92
5.5 Linkages with the Agri‐Food System ............................................................. 94
5.6 Conclusion ................................................................................................... 99

CHAPTER 6 ISSUES AND TRENDS
6.1 Introduction ............................................................................................... 101
6.2 Farmland Values ........................................................................................ 101
6.3 Age Profile ................................................................................................. 102
6.4 Commodity Prices ...................................................................................... 104
6.5 Safety Nets ................................................................................................ 107
6.6 Capital Costs .............................................................................................. 108
6.7 Production Costs ........................................................................................ 109
6.8 International Competition .......................................................................... 110
6.9 Environment .............................................................................................. 113
6.10 Productivity ............................................................................................... 114
6.11 Farm Size ................................................................................................... 116
6.12 Export Profile ............................................................................................. 118
6.13 Summary.................................................................................................... 119

CHAPTER 7 CONCLUSIONS
7.1 Opportunities ............................................................................................ 121
7.1.1 Emerging Markets ...................................................................................... 121
7.1.2 Consumer Trends ....................................................................................... 122
7.1.3 Bioproducts ............................................................................................... 123
7.1.4 Processing.................................................................................................. 123
7.1.5 Biotechnology ............................................................................................ 123
7.2 Research and Development ....................................................................... 123
7.2.1 Organics..................................................................................................... 124
7.2.2 Geospatial Technology ............................................................................... 125
7.2.3 The Bioeconomy ........................................................................................ 125
7.2.4 Nutraceuticals and Functional Foods .......................................................... 127
7.2.5 The Local Food Movement ......................................................................... 127
7.2.6 Local Ethnic Markets .................................................................................. 127
7.3 Conclusions ................................................................................................ 128

BIBLIOGRAPHY .....................................................................................................................xiii

FIGURE AND PHOTO SOURCE LIST .......................................................................................... xix
PLANSCAPE INC. v
LIST OF FIGURES

LIST OF FIGURES

Figure 1a Chart – Historical Acreages of Grain Crops in Ontario, 1921 ‐ 2006
Figure 1b Chart ‐ Historical Acreages of Grain Crops in Ontario, 1976 ‐ 2006
Figure 2a Chart – Historical Acreages of Oilseed Crops in Ontario, 1976 ‐ 2006
Figure 2b Chart ‐ Historical Acreages of Grain Crops (including Soybeans) in Ontario, 1976 ‐ 2006
Figure 2c Chart ‐ Historical Acreages of Bean Production in Ontario, 1981 ‐ 2006
Figure 3 Chart – Historical Area of Selected Grains and Oilseeds Crops in Ontario, 1976 ‐ 2006
Figure 4a Chart – Historical – Grain Crops in Ontario showing Yield (bu/acre), 1981 ‐ 2004
Figure 4b Chart – Historical – Grain Crops in Ontario showing Price per Unit ($/bu), 1981 ‐ 2004
Figure 4c Chart – Historical – Oilseed Crops in Ontario showing Yield (bu/acre), 1981 ‐ 2004
Figure 4d Chart – Historical – Oilseeds Crops in Ontario showing Price per Unit ($/bu), 1981 ‐ 2004
Figure 4e Chart – Historical – Bean Crops in Ontario showing Yield (cwt/acre), 1981 ‐ 2004
Figure 4f Chart – Historical – Beans Crops in Ontario showing Price Per Unit ($/cwt), 1981 ‐ 2004
Figure 5 Chart – Gains in Soybean Area Reflect Crop Development Efforts
Figure 6 Table – Census of Agriculture Tracks Growth in Soybean Area
Figure 7 Table – Products Made from Soybeans
Figure 8 Table – Products That Use Corn
Figure 9a Table – Area (acres) of Total Farmland, Grains and Oilseeds Farmland and Grains and Oilseeds Seeded
Land in Ontario, 2006
Figure 10a Table – Area of All Grains and Oilseeds Crops in Ontario, 2001 – 2006

Figure 10b Chart ‐ Area of Seeded Grains and Oilseeds Crops in Ontario, 2001 – 2006
Figure 11a Chart – Area Seeded by Commodity Type, 2001 ‐ 2007
Figure 11b Chart – Seeded Area (Acres) for Wheat, Grain Corn and Soybeans in Ontario, 2001 – 2007

Figure 11c Chart – Total Seeded Area (Acres) for Grains and Oilseeds in Ontario, 2001 – 2007
Figure 12a Chart – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
Figure 12b Chart – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
Figure 12c Chart – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
Figure 13a Chart – Historical Provincial Estimates by Crop – Census Years (1981 – 2001)
Figure 13b Chart ‐ Historical Provincial Estimates by Crop – Census Years (1981 – 2001)
Figure 14a Table ‐ Price of Ontario Grains and Oilseeds, 2001 ‐ 2007
Figure 14b Chart ‐ Prices of Ontario Grains and Oilseeds, 2001 ‐ 2007
Figure 15 Map – Ontario Geographic Zones
VII ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
Figure 16 Chart – Total Crop Distribution in Ontario by Region
Figure 17 Chart – Total Crop Distributions in Ontario by Region
Figure 18a Chart – Winter Wheat Distributions in Ontario
Figure 18b Chart – Spring Wheat Distributions in Ontario
Figure 18c Chart – Oat Distribution in Ontario
Figure 18d Chart – Barley Distribution in Ontario
Figure 18e Chart – Grain Distribution in Ontario
Figure 18f Chart – Grain Corn Distribution in Ontario
Figure 18g Chart – Fodder Corn Distribution in Ontario
Figure 18h Chart – Canola Distributions in Ontario
Figure 18i Chart – Soybean Distributions in Ontario
Figure 18j Chart – Beans Distributions in Ontario
Figure 18k Chart – Hay Distributions in Ontario
Figure 19 Map – Municipal Ranking in Grains and Oilseeds Production
Figure 20 Chart – Percentage of Change in Area Seeded by Commodity Type
Figure 21 Chart ‐ Percentage Change in Area Seeded by Region
Figure 22 Table ‐ Estimated Area, Yield, Production and Farm Value of Specified Field Crops, Ontario, 2006
Figure 23 Table ‐ Estimated Farm Value of Specified Field Crops, Ontario, 2001 – 2007
Figure 24 Chart ‐ Total Farm Value of Ontario Grains and Oilseeds, 2001 ‐ 2007
Figure 25 Table ‐ Estimated Farm Value of Specified Field Crops and Farm Cash Receipts, Ontario 2007
Figure 26 Table ‐ Cash Receipts by Commodity Type, 2001 ‐ 2007
Figure 27 Chart ‐ Total Farm Value & Farm Cash Receipts of Ontario Grains and Oilseeds, 2001 – 2007
Figure 28 Table ‐ Farm Type by Farms Reporting & Percentage of Total, 2001 ‐ 2006
Figure 29 Chart ‐ Farm Land Area by Tenure Ontario Census Years 1976 to 2006
Figure 30 Table ‐ Ontario Share of Canadian Grains and Oilseeds Crops by Farm Cash Receipts, 2007
Figure 31 Table ‐ Provincial Share of Canadian Field Crops Total Farm Cash Receipts by Commodity (Percentage),
2006
Figure 32 Table ‐ Area Seeded of Grains and Oilseeds Operations by Operation Type for Ontario and Canada, 2001
and 2006
Figure 33 Table ‐ Ten Export Countries for Ontario Grains and Oilseeds, 2003 ‐ 2007
Figure 34 Chart ‐ Top Five Export Countries for Ontario Grains and Oilseeds, 2003 ‐ 2007
Figure 35 Table ‐ Ten International Export Destinations for Each Commodity Group for Ontario, 2007
Figure 36 Table ‐ Top Ten Highest Grains and Oilseeds Trade Balances with Ontario, 2003 – 2007
PLANSCAPE INC. viii
Figure 37 Table ‐ Ten Lowest Grains and Oilseeds Trade Balances with Ontario, 2003 ‐ 2007
Figure 38 Table ‐ Exports of Grains and Oilseeds to the United States from All Provinces, 2003 ‐ 2007
Figure 39 Chart ‐ Provincial Proportion of Exports to the United States, 2007
Figure 40 Table ‐ Top Ten Export States (U.S.) for Ontario Grains and Oilseeds, 2003 ‐2007
Figure 41 Chart ‐ Top Five U.S. States for Ontario Exports of Grains and Oilseeds, 2003 ‐ 2007
Figure 42 Table ‐ Top Ten Export Destinations for Each Commodity Group from Ontario to the United States, 2007
Figure 43 Chart ‐ Ontario’s Wheat Exports, 1995 – 2004
Figure 44 Table ‐ Top Ten Grains and Oilseeds Import Countries to Ontario, 2003 ‐ 2007
Figure 45 Chart ‐ Grains and Oilseeds Import Counties to Ontario, 2003 ‐ 2007
Figure 46 Table ‐ Top Ten Grains and Oilseed Import States (U.S.) to Ontario, 2003 ‐ 2007
Figure 47 Chart ‐ Top Five Grains and Oilseeds Import States (U.S.), 2003 ‐ 2007
Figure 48 Chart ‐ Canadian Bean Exports to Major Destinations – 6 Year Average, 1999/2000 – 2004/05
Figure 49 Table ‐ Farm Value and Farm Cash Receipts for Specified Grains and Oilseeds Crops, 2007
Figure 50 Table ‐ Estimated Farm Value and Farm Cash Receipts for Specified Grains and Oilseeds Crops, 2007
Figure 51 Table ‐ Schematic Representation of a Hypothetical (and truncated) Pattern of Linkages Emanating from
an Agricultural Operation
Figure 52 Table ‐ Impact Multipliers by Industry in Ontario, 2004 Structure
Figure 53 Table ‐ Total Provincial Economic Impact of the Grains and Oilseeds Industry Using Two Estimates of
Industry Activity Levels
Figure 54 Chart ‐ Industrial Distribution of the Total Provincial Output Impacts of Grains and Oilseeds Production
(Farm Value Scenario)
Figure 55 Table ‐ Direct, Indirect and Induced Impacts of Provincial Grains and Oilseeds Production (Based on
Farm Cash Receipts – 2007)
Figure 56 Table ‐ Direct, Indirect and Induced Impacts of Provincial Grains and Oilseeds Production (Based on
Production Value – 2007)
Figure 57 Chart ‐ Direct, Indirect and Induced Impacts by Industry as a Percentage of the Total Province‐wide
Output Impact
Figure 58 Chart ‐ Farm Market Receipts by Commodity, 1990 and 2007
Figure 59 Chart ‐ Grains and Oilseeds Farms as a Percentage of Total Farms – By Region
Figure 60 Chart ‐ Grains and Oilseeds Farm Production as a Percentage of Total Farm Gate Receipts – By Region
Figure 61 Chart ‐ Regional Farm Market Receipts by Commodity Share, 2007
Figure 62 Table ‐ Ontario Comparison of Crops Harvested, Bushels and Yield to New York, Ohio, Pennsylvania and
Michigan, 2002
Figure 63 Table ‐ Ontario Comparison of Crops Harvested, Bushels and Yield to New York, Ohio, Pennsylvania and
Michigan, 2007
Figure 64 Chart ‐ Ontario Comparison of Yield (bu/acre) to New York, Ohio, Pennsylvania and Michigan – 2002
IX ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
Figure 65 Chart ‐ Ontario Comparison of Yield (bu/acre) to New York, Ohio, Pennsylvania and Michigan, 2007
Figure 66 Chart ‐ The Agriculture and Agri‐Food System’s Contribution to GDP and Employment, 2006
Figure 67 Chart ‐ Provincial Contribution to Canadian Agriculture and Food Processing GDP, 2006
Figure 68 Chart ‐ Provincial Employment in the Agriculture and Agri‐Food System, 2005
Figure 69 Table ‐ The Agriculture and Agri‐Food System
Figure 70 Table ‐ The Value Chain of Agriculture Specific Input and Service Suppliers
Figure 71 Chart ‐ Flow Chart – Corn Processing
Figure 72 Chart ‐ – Flow Chart – Oilseed Processing
Figure 73 Chart ‐ Flow Chart – Wheat Processing
Figure 74 Chart – Food Processing Value of Shipments, Ontario 2005
Figure 75 Chart ‐ Canada – Semi‐annual Percentage Change in Farmland Values
Figure 76 Chart ‐ Ontario – Semi‐annual Percentage Change in Farmland Values.

Figure 77 Chart ‐ Percentage Distribution of Ontario Farm Operators by Age 1991 ‐ 2006
Figure 78 Chart ‐ Historical Price Per Unit ($/tonne) of Grain Crops in Ontario, 1981 – 2004
Figure 79 Chart ‐ Historical Price Per Unit ($/tonne) of Bean Crops in Ontario, 1981 ‐ 2004
Figure 80 Chart ‐ Canadian Canola and Soybean Prices, 1991 – 2006
Figure 81 Chart ‐ Canadian Realized Net Incomes (adjusted for inflation)
Figure 82 Chart ‐ 2007 Farm Market Receipts by Commodity, Relative to Five‐Year Average
Figure 83 Chart ‐ Average Net Market Income and Program Payments, 2003 – 2008
Figure 84 Chart ‐ Net Worth by Province, 2006 Compared to 5‐year Average (2001 to 2005
Figure 85 Chart ‐ Net Worth by Farm Type, Canada, 2006 Compared to 5‐year Average(2001 to 2005)
Figure 86 Chart ‐ World Crude Oil Prices, 2002 – 2007
Figure 87 Chart ‐ Cost of Production as a Share of Food Processing Shipments Canada – US., 2003
Figure 88 Chart ‐ Production from Export Sales, 2004 ‐ 2006
Figure 89 Chart ‐ Ontario Grains & Oilseeds Exports
Figure 90 Chart ‐ Share of Farm Market Receipts from Export Sales for Canada, the US. and EU, 1999 – 2006
Figure 91 Chart ‐ Annual Export Values
Figure 92 Chart ‐ Management Practices 1981 – 2006
Figure 93 Table ‐ Tillage practices used to prepare land for seeding, Ontario, census years 1991 to 2006
Figure 94 Chart ‐ Wheat Yields, 1960 – 2004
Figure 95 Chart ‐ Historical – Corn for Grain and Soybean Crops in Ontario showing Yield (bu/acre) 1981 ‐ 2004
Figure 96 Chart ‐ Farms Classified by Total Gross Farm Receipts, 1981 – 2006
PLANSCAPE INC. x
Figure 97 Table ‐ Grains & Oilseeds Farm Incomes in Ontario by Revenue Class as a Percentage of Total Value
(2004)
Figure 98 Chart ‐ Average Ontario Grains & Oilseeds Farm Net Operating Margin by Net Income Quartile, 2004
Figure 99 Chart ‐ Percentage Change in Ontario Grains & Oilseeds Farm Numbers by Revenue Class, 1997 – 2004
Figure 100 Chart ‐ Commodity Composition of Export Sales, 1998 and 2007
Figure 101 Chart ‐ Agriculture and Agri‐Food Export Sales, 1990 – 2005
Figure 102 Chart ‐ Value of Canadian Agriculture and Agri‐Food Exports to Emerging Markets, 1992 – 2007
Figure 103 Chart ‐ Increase in Middle Income Consumers, 1996 ‐ 2006
Figure 104 Chart ‐ Average Annual Growth Rate in Retail Sales of Packaged Products, 2002 – 2006
Figure 105 Chart ‐ Estimates of Organic Food Sales Retail Market Channels, 2006
Figure 106 Chart ‐ Corn Consumption and Imports, 1991 – 2006
XI ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
CHAPTER 1
INTRODUCTION

1.1 Background and Purpose
Founded in 2005, The Ontario Grain & Oilseed Safety Net Committee (the Committee) represents the interests
of seven organizations including: the Ontario Soybean Growers, Ontario Corn Producers’ Association, Ontario
Wheat Producers Marketing Board1, Ontario Canola Growers’ Association, Ontario Coloured Bean Growers
Association, Ontario White Bean Producers Marketing Board and the Seed Corn Growers of Ontario. The
Committee was established in response to growing concern over instability in the grains and oilseeds sector
and to allow the growers to speak with a united voice and raise the profile of their sector.

As part of its mandate, the Committee commissioned this study to document the historic, present and future
role of the grains and oilseeds industry in the economy of Ontario. The study examines the nature of the
existing provincial grains and oilseeds industry, its evolution over the past 20 years, its contribution to the
provincial economy, its relationships with associated businesses, the future trends that may affect the industry
and what is needed to support and promote the grains and oilseeds industry in Ontario.

The grains and oilseeds industry is a
large and evolving sector of the
agricultural industry in Ontario, one
which transmits significant economic
benefits to the local, provincial and
national economies of Canada.
However, due to issues currently
affecting agriculture, this is a sector
experiencing a variety of pressures.
Measuring the impact of grains and
oilseeds operations on the provincial
economy and determining ways to
increase the positive impact of this
industry, raise its profile, address the
pressures and generate
understanding of its importance, is
critical to the sector’s future.

1
The process to transition the Ontario Soybean Growers, Ontario Corn Producers” Association, and Ontario Wheat Producers Marketing Board into the
Grain Farmers of Ontario began on December 12, 2008.
2 ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
1.2 Study Objectives
The objectives of the study are to:
1. Evaluate how the Ontario Grains and Oilseeds industry has evolved over the past 20 years with respect
to innovations in production and investments in the value chain.

2. Assess the degree of efficiency gains that have been made in the last 20 years and how they compare
to the Ontario Grains and Oilseeds closest competitors.

3. Assess the financial benefits or impacts of maintaining a healthy and stable grains and oilseeds
production sector in the Ontario agri‐food and bio product value chain.

4. Determine the impact of stabilization and subsidization of the Ontario Grains and Oilseeds sector on
the rest of the value chain.

5. Assess the level of government revenue collected from the entire agri‐food chain and estimate the
portion attributable to Ontario Grains and Oilseeds.

6. Evaluate the impact of Ontario Grains and Oilseeds in rural communities.
The results of this analysis are intended to raise awareness, in quantitative terms, of the degree to which the
grains and oilseeds industry in Ontario acts as an engine of economic growth, both regionally and provincially.
This awareness is crucial to ensuring that the sector continues to prosper and is afforded appropriate
consideration by all levels of government.
PLANSCAPE INC. 3
1.3 Audience
The audience for this study is broad. Generally, the proponents intend that the study will raise the profile of
the grains and oilseeds sector and provide information about this very innovative industry which has had a
relatively low profile to date. More specifically, the proponents intend that this study will be a compilation of
facts about the industry that will assist industry stakeholders in understanding the challenges and the
opportunities that lie ahead.

A primary audience for this report includes governments and the regulatory agencies whose actions have an
impact on the sector. It is important for these bodies to understand the importance of the grains and oilseeds
sector, its role in stimulating and supporting the economy, its world class status and its future potential, so
that the actions they take will support and foster the sector.

As a traditional activity, agriculture is often overlooked or under estimated in this day of technological change.
The ties that historically existed between Ontario residents and agriculture are disappearing. In the past, many
Ontarians either grew up on or were only a generation removed from the farm. This is no longer true. Ontario
continues to urbanize and the understanding of rural life is declining. It is intended that this study will provide
a base of information that can reverse this lack of knowledge and understanding of the role the grains and
oilseeds sector plays in Ontario.
1.4 The Study Team
The study team was structured in response to the specific requirements set out in the terms of reference. The
project was coordinated by Margaret Walton, a partner in Planscape, a planning consulting firm specializing in
planning for rural areas. The Planscape staff conducted research, both primary and secondary and were
responsible for all planning, land use and qualitative components of the study.

Dr. Rick DiFrancesco, of Regional Analytics, an expert in economic input output analysis and professor at the
University of Toronto was responsible for the economic analysis. Throughout the study, members of the
Steering Committee and grains and oilseeds producers provided invaluable input and assistance.

1.5 The Study Area and Parameters
The study area encompasses the entire Province of Ontario. In response to a requirement to compare the
Ontario situation to “closest competitors in the United States”, appropriate state competitors were identified
and sufficient data about those identified areas was assembled to facilitate legitimate comparison.

The grains and oilseeds sector is defined in different ways by different agencies under different circumstances.
For the purposes of this report, grains and oilseeds was deemed to include the commodities represented by
the Ontario Grains and Oilseeds Safety Committee and commodities produced by the majority of members
(i.e. hay). The list of commodities includes:

1. Wheat, including feed wheat (winter and spring)
and durum;
2. Oilseed, including canola, soybeans, mustard seed
and flaxseed;
3. Dry Field Beans, including dry white beans and
coloured beans;
4. Corn (for seed2, grain and silage);
5. Other small grains, including rye, oats, barley and
mixed grains; and,
6. Hay (alfalfa, alfalfa mixtures and other tame hay).
1.6 Report Structure
The report includes the following sections:

• Background of the Ontario Grains and Oilseeds
Industry in Ontario;
• Profile of the Grains and Oilseeds Sector in
Ontario;
• The Grains and Oilseeds Sector’s Role in Ontario’s
Economy;
• Grains and Oilseeds Role in the Community;
• Issues, Trends and Opportunities; and
• Conclusions.

2
When questioned about reporting of statistics specific to seed corn, Statistics Canada confirmed there is no specific category for seed corn and that
data for it should be reported with grain corn. However they noted that this is at the discretion of the producer since instructions regarding this are not
included on the questionnaire. Therefore it is possible that some seed corn is accounted for under sweet corn (classified as a vegetable and therefore
not addressed in this report or as “other small grain” which tends to be a catch all category).
PLANSCAPE INC. 5
1.7 Research Methodology
The research for this paper used both primary and secondary sources. With respect to the primary research
related to the economic impact assessment, a survey was conducted using grains and oilseed growers in
Ontario. Results from this survey were used to formulate some of the conclusions documented in this study.

Meetings were held with representatives of the industry and associated businesses. Throughout the process,
the cooperation of all participants enhanced the quality of the results and was greatly appreciated.

The secondary statistical sources relied upon for the study included Statistics Canada (Stats Can), the Ontario
Ministry of Agriculture, Food and Rural Affairs (OMAFRA), Agriculture and Agri‐Food Canada (AAFC), and
publications by the various grower related organizations. A complete bibliography of sources is provided at the
end of the report.

Statistics Canada data is the basis for the majority
of the analysis. It is a primary source and since
other organizations rely on Statistics Canada for
data, it is the underlying source for most of the
secondary data used. Because of this, the
definitions used by Statistics Canada (Stats Can) are
the definitions that underlie the analysis. It should
be noted that Stats Can has a number of different
definitions used for different purposes. Therefore
the numbers in this report may vary depending on
the context in which they are used. To assist in
understanding the terms and references in the
report, footnotes and labeling is used.

The other challenge associated with using Stats Can
data is the approach taken to define farm type.
Each farm is classified according to the
predominant commodity produced. Therefore, if
51% of the gross farm receipts generated are
attributable to hogs, the farm is classified as a hog
farm even though 49% of the remaining receipts
could be generated by grains and oilseeds. For most
sectors, or where the analysis is geographically
based, this is not an issue. However, for a sector
such as grains and oilseeds, which are grown on most farms, this method of classification results in an under
reporting of the percentage of agricultural activity that is associated with the sector. To address this, attention
was paid to the type of data used to ensure that the analysis did not focus totally on statistics based on farm
classification. However because of the way Stats Can reports data, it is inevitable that some of the reporting
done will be based on farm type and will result in under representation of the sector.

To counter this, commentary is included in the report to clarify the implications the method of reporting data
could have on the conclusions drawn.

In assessing the economic impact of the grains and oilseeds sector, the data relied on was farm cash receipts
as generated by Statistics Canada. Farm cash receipts measure the gross revenue of farm businesses in current
dollars and include sales of crops and program payments3. Receipts are recorded when the money is paid to
the farmers before any expenses are paid. Since the primary reason for compiling farm cash receipts is to
estimate contribution to gross domestic product, inter farm sales are not included.

For the reason cited above, and because they do not include either product that is consumed on farm or inter
farm sales, farm cash receipts do not measure total production. Given that a significant percentage of grains
and oilseeds product is grown for on farm use, using farm cash receipts can undervalue the productivity of the
sector. To address this, in addition to assessing economic impact based on farm cash receipts, the economic
impact analysis was calculated using production statistics generated by OMAFRA. These statistics apply a value
to volume of production thereby capturing the total production, not just the portion that is recorded as a farm
cash receipt.

The challenge in using these two sets of statistics is that there are differences in how they are generated. For
example, while farm cash receipts are calculated on a calendar year, farm production value is calculated on the
basis of the crop year. Generally, value of production based on volumes is higher than the cash receipts but in
certain circumstances where prices have risen significantly and a portion of the crop is sold at a time of higher
prices; the cash receipts could be higher than production value. These anomalies must be considered when
comparisons are made.

3
See Statistics Canada publication “Farm Cash Receipts” “Agriculture Economic Statistics” Catalogue No. 21‐011‐X for further explanation.
PLANSCAPE INC. 7

CHAPTER 2
BACKGROUND OF THE ONTARIO
GRAINS AND OILSEEDS INDUSTRY
IN ONTARIO

2.1 Historical Development
The grains and oilseeds industry has an extensive history in Ontario. The moderate Great Lakes climate and
rich glacial soils of southeastern Canada provide an excellent growing environment for coarse grains and
oilseeds and their production has been part of the agricultural profile of the area throughout its history. Today,
grains and oilseeds production continues to dominate agriculture in Ontario; in 2007, the sector1 accounted for
35% of crop farm cash receipts in Ontario and 16% of total provincial farm cash receipts.
As early as 1000 BC, native peoples in the
lower Great Lakes and St Lawrence
regions planted maize (native corn), and
beans. They practiced seed selection and
elementary principles of forcing (using
structures that allow light and induce
favourable environmental conditions for
plant growth). Long before the
appearance of French traders, the native
people traded maize for skins and meat
obtained by woodland hunters.
Between 1783 and 1815 settlement
expanded along the shores of the Great
Lakes and the St Lawrence, where some
cereal grains and vegetables were grown chiefly for survival. Between 1800 and 1860 agriculture in what is
now Ontario, was dominated by wheat production. Wheat was the most easily grown and marketed crop and
was a vital source of income for settlers.
Although local demand for wheat was somewhat limited, large scale markets existed in Britain and Lower
Canada. Significant transportation improvements in the mid 1800s facilitated increased export of wheat out of
the region. These improvements, coupled with favourable climate conditions and growth in markets, allowed a
healthy wheat export market to develop during the 1840s.2 Blessed with some of the best grain producing
conditions in North America, Upper Canada had little difficulty in attracting British immigrants to its territory,
and by Confederation, approximately three‐fifths of the total population was involved in agriculture.3
A number of farm equipment improvements occurred in the 1800s which increased farm productivity. The
adoption of the American cast‐iron plow in the early 1800s assisted the grain sector by improving field tillage.
Government authorities supported the British technology of covered drains to reclaim extensive tracts of
swampy or bottom land, averting the use of furrow and ditch drainage that impeded mechanization. The
reaper, a machine for cutting standing grain was rapidly adopted in the mid 1800s, permitting increased
production of grain.4

1
Grains and oilseeds include wheat, rye, oats, barley, canola, soybeans, grain corn, seed corn, fodder corn, mixed grain, white & coloured beans and hay
unless otherwise specified.
2
McCallum, John, Unequal Beginnings: Agriculture and Economic Development in Quebec and Ontario until 1870, University of Toronto Press, 1980, pg
4
3
McCallum, John, Unequal Beginnings: Agriculture and Economic Development in Quebec and Ontario until 1870, University of Toronto Press, 1980, pg
3
4
The Canadian Encyclopedia, http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0000077
During the early 20th century, Ontario experienced extensive urbanization along the St. Lawrence – Great
Lakes water route. This led to a greater demand for food to supply the urban population. During this period
agriculture prospered. However as urbanization spread, Ontario farm receipts decreased. Between 1926 and
1931 receipts declined by 50%. The government responded to the crisis with regulation and the formation of
the Ontario Marketing Board in 1931. In return for government loans, producers improved and modernized
their operations. By the time of World War II, Ontario agriculture was diversified with both agricultural
marketing boards and farmer‐owned co‐operatives playing important roles.5 Today, the interests of growers
continue to be addressed by commodity specific organizations.

The production of grain crops has a long
history in Ontario and over time has
experienced significant changes. Although the
mix of product has remained constant, the
volumes produced have shifted dramatically.
Production of oats, which, as shown on Figure
1a, was the dominant commodity in the early
20th century with over 2.5 million acres under
production, has declined and is now only a
minor component of total grain production.
Corn production, after increasing dramatically
between 1960 and 1980 has leveled off,
although as shown in Figure 1b, it remains the
dominant grain crop. Historically, wheat
production has experienced cycles of fluctuations, but since 2001 it has seen a significant increase in area
under production and is the second largest generator of farm cash receipts in the grain sector.

Figure 1a – Historical Acreages of Grain Crops in Ontario, 1921 – 2006
3,000

2,500

2,000
Acres (Thousands)

1,500

1,000

500

0

1921 1931 1941 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 Year

Wheat Oats Barley Corn for Grain
5
Ibid
PLANSCAPE INC. 10
Figure 1b – Historical Acreages for Grain Crops, 1976 – 2006
2,500

2,000

Acres (Thousands)

1,500

1,000

500

0

1976 1981 1986 1991 1996 2001 2006 Year

Wheat Oats Barley Corn for Grain

Although oilseeds have a briefer history than grains in Ontario, over time they have become an integral part of
the province’s agricultural economy. Oilseeds include soybeans, canola, sunflowers, cotton, peanuts and flax.
In Ontario, as shown on Figure 2a, soybean production, which has experienced significant growth since 1976,
dominates the oilseeds sector. Canola is the second largest oilseed crop with very small areas cultivated for
sunflower and flaxseed production.

Figure 2a – Historical Acreages of Oilseed Crops in Ontario, 1976 ‐ 2006
100
Canola
Flaxseed
90
Sunflowers
80

70

60
Acres (000's)

50

40

30
20

10
0
1976 1981 1986 1991 1996 2001 2006 Year

Figure 2b provides a breakdown of the acreage for the three smaller oilseed commodities grown in Ontario, all
of which occupy less than 100,000 acres. This figure confirms that there has been a significant variation in
production for canola over time, with the area under production peaking in 1986 at 92,631 acres and falling to
18,575 acres in 2006. This fluctuation continues; the area seeded in 2007 was reported at 35,000 acres; in
2008, the area seeded was 55,000 acres.

Figure 2b – Historical Acreages of Oilseed Crops (Including Soybeans) in Ontario, 1976 – 2006
2,500
Soybeans

Canola (Rapeseed)
Flaxseed
2,000

1,500
Acres (000's)

1,000

500

0
Year
1976 1981 1986 1991 1996 2001 2006

Figure 2c tracks the production of field beans.6 Over time, production of beans has fluctuated from a high in
1976 of 171,628 acres to a low of 121,821 acres in 2001.7 This volatility continues; after increasing to 163,495
acres in 2006, the acreage harvested declined to 159,000 acres in 2007 and to 133,000 acres in 2008.8 This
fluctuation in acreage was higher for coloured beans than for white beans. For 2007 and 2008, the acreage
seeded to white beans declined by less than 10%; the area seeded to coloured beans increased by 5% in 2007
and then declined by 27% in 2008.

6
Field Beans includes dry white or navy beans and coloured beans
7
Statistics Canada: Selected Historical Data, Census of Agriculture Catalogue No. 95‐632‐XWE
8
Ibid.
PLANSCAPE INC. 12
Figure 2c – Historical Acreages of Bean Production in Ontario, 1981 – 2006
160
Dry White Beans
Coloured Beans
140

120

100
Acres (Thousands)
80
60

40

20

0

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

NOTE: Historical Data for Coloured Beans did not start until the year 1992.

Since 1976, as shown in Figure 3, the breakdown of grains and oilseeds production has remained relatively
constant with soybean, corn and wheat production dominating.

Figure 3 – Historical Area of Selected Grains and Oilseeds Crops in Ontario, 1976 ‐ 2006
2,500

2,000

Area (Acres ‐ Thousands)

1,500

1,000

500

0
1976 1981 1986 1991 1996 2001 2006
Year

Total Wheat Oats For Grain Barley Mixed Grains Corn For Grain

Total Rye Canola (Rapeseed) Flaxseed Soybeans Sunflowers

PLANSCAPE INC. 14
Figure 4a – Historical – Grain Crops in Ontario showing Yield (bu/acres), 1981 – 2004
140

120

100

Yield (bu/acre)
80

60

40

20

0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Wheat 51.6 43.3 50.4 57.5 66.9 54.6 51.9 54.1 55.4 63.9 53.0 68.0 53.2 63.4 69.8 40.6 61.1 62.7 73.2 74.3 71.9 72.1 76.3 72.4
Oats
53.6 60.8 46.1 60.0 67.1 61.0 60.9 46.7 62.2 62.3 55.6 63.9 59.0 59.1 59.0 53.7 61.9 61.0 65.3 61.4 68.9 67.0 72.7 70.0
Barley 57.5 59.3 45.9 59.4 66.7 60.0 60.7 47.2 58.5 60.7 53.6 67.4 57.5 60.3 60.0 56.3 60.6 56.5 63.5 57.5 66.1 56.9 63.5 63.7
Corn for Grain 94.9 98.3 92.5 96.7 101.9 101.1 116.8 84.5 105.0 113.1 110.5 97.1 108.6 120.7 117.1 111.1 112.4 128.8 128.3 105.2 103.1 113.1 127.0 131.3

Figure 4b – Historical – Grain Crops in Ontario showing Price Per Unit ($/bu) 1981 – 2004
$6

$5

$4

Price Per Unit ($/bu)
$3

$2

$1

$0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Wheat 4.27 3.55 3.99 4.20 3.89 3.00 4.62 4.16 3.81 3.16 3.21 2.80 3.52 3.89 5.33 4.93 3.85 3.24 3.36 2.70 3.76 4.19 4.04 3.54

Oats 2.06 1.80 2.21 2.15 1.76 1.42 1.66 2.50 1.99 1.67 1.63 1.72 1.63 1.73 2.56 2.30 2.26 1.91 1.72 1.73 2.69 2.49 2.25 2.16
Barley 2.65 2.34 3.05 2.97 2.32 1.94 2.05 3.08 2.74 2.35 2.17 2.31 2.32 2.52 3.63 3.39 2.86 2.35 2.09 2.49 2.89 3.09 2.76 2.47
Corn for Grain 2.92 2.84 4.03 3.41 2.87 2.28 2.57 3.63 3.07 2.64 2.67 2.77 3.34 3.00 4.64 3.88 3.66 2.99 2.84 3.22 3.44 3.96 3.62 2.94

PLANSCAPE INC. 16
Figure 4c – Historical – Oilseed Crops in Ontario showing Yield (bu/acre) 1981 – 2004
45

40

35

30

Yield (bu/acre)
25

20

15

10

5

0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Canola 18.8 32.9 36.0 35.0 32.5 21.8 27.5 38.0 31.1 37.1 34.0 36.4 34.1 40.0 36.9 38.5 34.3 37.8 39.4 32.5 36.0 37.3
Soybeans 32.4 34.7 30.0 33.7 37.2 37.1 41.1 32.3 33.5 38.7 36.2 34.5 38.5 40.5 41.3 37.0 38.0 41.0 40.5 38.0 21.1 33.9 31.9 39.6

Figure 4d – Historical – Oilseed Crops in Ontario showing Price Per Unit ($/bu) 1981 – 2004

$12

$10

$8

Price Per Unit ($/bu)

$6

$4

$2

$0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Canola 8.85 7.80 5.90 4.70 5.50 7.35 6.15 6.08 5.81 6.40 6.87 7.98 8.60 9.52 8.53 8.19 6.06 5.53 6.01 8.83 7.93 7.73

Soybeans 7.19 6.80 9.33 7.55 6.71 6.30 7.19 8.46 6.61 6.26 6.18 6.87 8.15 7.43 8.80 10.07 9.16 7.58 7.17 7.07 7.31 8.50 9.87 7.69

PLANSCAPE INC. 18
Figure 4e – Historical – Bean Crops showing Yield (cwt/acre) 1981 – 2004
25

20

15
Yield (cwt/acre)

10

5

0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Dry White Beans 13.0 13.6 12.5 13.3 14.3 8.5 18.0 14.4 14.3 16.3 20.2 10.0 16.2 17.6 17.4 13.3 16.0 16.0 17.4 13.3 13.1 18.5 20.0 19.0

Coloured Beans 7.9 16.7 17.1 17.1 13.8 16.6 17.5 17.0 11.5 9.8 16.0 21.0 20.5

Figure 4f – Historical – Bean Crops in Ontario showing Price Per Unit ($/cwt) 1981 – 2004
$45
$40
$35
$30
Price Per Unit ($/cwt)
$25
$20
$15
$10
$5
$0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Dry White Beans 30.70 24.44 28.41 23.61 17.62 42.21 11.02 32.54 25.50 15.30 11.51 19.25 22.30 33.27 22.50 24.80 17.89 29.28 25.52 22.91 27.47 23.00 30.10 28.78
Coloured Beans 34.52 27.67 28.26 30.75

PLANSCAPE INC. 20
Figures 4a through 4f illustrate some of the challenges faced by grains and oilseeds producers over time. These
figures chart the changes in productivity and price during the period from 1981 to 2004. What these figures
underscore is that while for most commodities there has been a relatively constant increase in yield per acre,
but despite significant fluctuations, prices have not increased. It is notable that for most commodities, price
per unit in 2004 is lower than it was in the 1980s.

Today, as throughout its history, the grains and oilseeds industry continues to be a critical component of the
Ontario economy and the backbone of agriculture. In 2007, combined farm cash receipts for grains and
oilseeds exceeded $1.4 billion. Beef and pork producers, along with dairy, egg and poultry producers rely on
grains and oilseeds for feed and other components of production. Grains and oilseeds grown in Ontario are
critical inputs for food processing industries, and the availability of locally‐grown commodities is a key anchor
and attraction for food processing investment and employment in Ontario. A healthy grains and oilseeds
sector is critical to the development of the alternative fuels industry – which has become a key element in
Ontario's environmental strategy going forward.9
2.2 Commodity Breakdown
The Ontario grains and oilseeds industry is
comprised of more than 29,000 grains and oilseeds
producers10 who farm in excess of eight million
acres.11 Grains and oilseeds crops are used
extensively for livestock feed and are processed
for food, fuel and industrial use. In Ontario, the
predominant grains (or cereal) crops include corn,
wheat, barley, oats and rye. Major Ontario oilseed
crops include soybean and canola. Field beans
include dry white or navy beans and
coloured beans.
Ontario farmers produce grains and oilseeds crops
for livestock and poultry feed as well as human
food products such as breads, pasta, cereals,
cooking oils, health foods, and nutraceuticals. The
coarse grains, barley and corn, are produced for both human consumption and livestock and poultry feed.
Oilseeds are produced for their seed and are also processed to use in oils for industrial uses as well as human
consumption. Both Canadian and Ontario technology has evolved and been responsible for various new
innovations resulting in new products, by‐products, and markets for Ontario’s growing grains and oilseeds
sector. Ongoing research is continuing in areas of processing, nutraceuticals, bio‐diesel, and ethanol
production. Below is a brief description of the grains and oilseeds crops featured in this report.

9
Ontario Grain & Oilseed Group – Position Summary, Ontario Corn Producers Association, March 2005,
http://www.ontariocorn.org/issues/GOsummary032205.htm
10
Grain & Oilseed Safety Committee web page
11
Field Crop Reporting Series, Preliminary Estimates of Principal Field Crop Areas, Canada, Statistics Canada, June, 2008, Catalogue No. 22‐022‐X pg. 11.
2.2.1 Oilseeds
2.2.1.1 Soybeans
Soybeans are high protein, high oil beans used for food for human consumption, animal feed, edible oil
production and industrial products. Soybeans were first grown in Ontario in the 1890s at the Agricultural
College in Guelph, but production did not become significant until World War II when the soybeans’ potential
as an alternative source of oil was recognized. Since that time, as shown on Figure 5, production in Ontario
exploded; from 4,400 hectares in 1941, to 62, 967 hectares in 1951, then to 278,853 hectares in 1981, and to
872,455 hectares in 2006.12 In 2008 area seeded to soybeans in Ontario exceeded 3.3 million acres13; 40% of
the area seeded to grains and oilseeds.

A native of East Asia, the soybean contains very high levels of protein. The oil and protein content is
approximately 60% of dry soybeans by weight (40% protein; 20% oil). Although similar to other legumes,
soybeans have a significant advantage over them in that they have the highest yield per square metre of
growing area and are the least expensive source of dietary protein. They are also somewhat less expensive to
produce because, being a legume, the plant can fix nitrogen from the air. This reduces the need for purchased
fertilizer.

Figure 5 – Gains in Soybean Area Reflect Crop Development Efforts

12
Statistics Canada: Selected Historical Data from the Census of Agriculture, Catalogue No. 95‐632‐XWE
13
Statistics Canada, Field Crop Reporting Series Catalogue No. 22‐022‐X, June, 2008
PLANSCAPE INC. 22
Because soybeans require a long, warm growing season, production in Canada was confined to southern
Ontario until 1976, when scientists at the Harrow Research Station developed more hardy varieties, specifically
the “Maple” series of cultivators.14 This allowed production to expand to other areas of Ontario and to other
provinces. However, as shown in Figure 6, Ontario continues to dominate production; in 2007, 76% of
Canadian soybean farm cash receipts were generated in Ontario. Although in 2008, Statistics Canada reported
a record high in area seeded for soybeans in Quebec15, the area reported still only represented 27% of the area
seeded in Ontario.

Figure 6 – Census of Agriculture Tracks Growth in Soybean Area

In 2006, the average seed yields for flaxseed, canola, soybeans and sunflowers in Canada were 1.3 t/ha, 1.7
t/ha, 2.9 t/ha and 2.0t/ha, respectively. High soybean yields can be attributed to the longer growing season
and relatively favourable moisture conditions in Ontario. Edible oilseed production, which began during World
War II, now provides the raw material for a multimillion‐dollar crushing, refining and processing industry.
During the last 3 decades, Canada has changed from a major importer to a net exporter of edible oil and
oilseeds.16
Products from soybeans are many, as illustrated in Figure 7.
14
Dorff, Erik, The Soybean, Agriculture’s Jack‐of‐All Trades, is gaining ground across Canada, Statistics Canada, 2007, Catalogue No. 96‐325‐XIE2007000,
Canadian Agriculture at a Glance.
15
Statistics Canada, Field Crop Reporting Series Catalogue No. 22‐022‐X, June, 2008.
16
Stefansson, B.R., Oilseed Crops, The Canadian Encyclopedia.
(http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0005902)
Figure 7 ‐ Products derived from Soybeans

Over 40% of the soybeans produced in Canada in 2006 were exported. In terms of value, soybeans is one of
the top earning commodities in Ontario. In 2007, farm cash receipts generated by soybeans topped $797
million, higher than either corn or wheat. Soybean producers in Ontario have been represented since 1949 by
the Ontario Soybean Growers, which
has a membership in excess of 25,000
growers. In September 2008, corn,
soybean and wheat producers voted to
amalgamate to form a new
organization to represent their
interests, the Grain Farmers of Ontario.
In December 2008, the provincial
government announced the initiation
of the process to create this new
organization.

PLANSCAPE INC. 24
2.2.1.2 Canola (Rapeseed)
Canola is a type of edible oil. Originally used as a fuel source and
for lamp oil, canola, a variety of rapeseed, belongs to the mustard
family and “has been cultivated for food since the earliest
recordings of man”.17

Tolerant to salinity in the soil, canola is grown best on medium
textured and well‐drained soils. Since 1936, Canada has evolved
from producing canola as a specialty crop to an annual major
producer of canola seed. The majority of Canadian production
occurs on the prairies; the contribution from Ontario comprises
less than 1% of total annual production. Major customers of
Canada’s canola seed crop are China, Japan, Mexico and Pakistan.
The United States also imports processed canola oil and meal
from Ontario.

The area seeded for canola in Ontario increased in 2008 to 55,000
acres, up from 35,000 acres in 2007.18 The farm cash receipts
generated by canola in 2007 were $9.3 million dollars19 , in 2008
the value increased to $18.4 million.

Canola producers are represented by the Ontario Canola Growers
Association which is part of the Canadian Canola Growers
Association.

2.2.1.3 Sunflower Seed and Flaxseed
The other two types of oilseeds, flaxseed and sunflower seeds are not grown in reportable volumes in Ontario.
Flaxseed production was last reported in 1991 when an area of 2,140 acres was harvested.20 Today, the
majority of Canadian production of these two commodities occurs on the prairies.
17
http://www.hort.purdue.edu/newcrop/afcm/canola.html
18
19
Statistics Canada, Farm Cash Receipts Catalogue No. 21‐011‐X, November, 2008.
20
OMAFRA “Historical Provincial Estimates by Crops, 1981 – 2004”.
2.2.2 Grains
Grain (or cereal, which includes wheat, barley, oats, rye, mixed grain and corn for grain) crops are mostly
grasses cultivated for their edible grains or fruit seeds. Cereal grains are grown in greater quantities and
provide more energy worldwide than any other type of crop.

2.2.2.1 Wheat
Wheat is a domesticated grass that has been cultivated worldwide throughout history. Globally, wheat is
grown on more land area than any other crop in the world and is third to rice and corn in total world
production.21 Wheat grain is used to make flour for leavened, flat and steamed breads; cookies, cakes, pasta,
noodles and couscous; for fermentation to make beer, alcohol, vodka; or for biofuel. Wheat is planted to a
limited extent as a forage crop for livestock, and the straw can be used as fodder for livestock or as a
construction material for roofing thatch.

Wheat production in Ontario is divided
between hard red winter which
accounts for approximately 40% of
annual production, hard red spring
which accounts for approximately 5% of
production and soft winter which
accounts for the remaining 55% of
production. Soft winter production is
split 60% soft red; 40% soft white.22
Soft red and white winter wheat is used
primarily for pastries and cakes, hard
red winter wheat is used for crackers
and flat breads and hard red spring
wheat is used for bread. New classes of
wheat, including hard white spring and
durum, are in development, and are
used for whole wheat bread and pasta. Small quantities of feed wheat are also grown in Ontario.

Ontario is the highest yielding and one of the most diverse wheat producing regions in North America. The
Ontario Wheat Producers Marketing Board (OWPMB) numbers indicate there are 16,000 active wheat
growers23 in Ontario with total area seeded in 2008 exceeding 1.3 million acres.24

2008 was a record year for seeding of winter wheat in Ontario with 1.2 million acres seeded, up from the
previous record in 2006, of 1 million acres.25 Significant winter‐wheat production in Ontario is limited to the
south western part of the province, where fall precipitation and warm days allow for germination; and cold
winter temperatures and snow coverage allow for dormancy. Growth begins again in March allowing for
almost a full year of growth prior to harvest. Spring wheat production dominates in eastern Ontario.

Wheat producers in Ontario are represented by the OWPMB. Founded in 1958 to buy and sell wheat produced
in Ontario, the Board’s original mandate was to market wheat that was excess to domestic markets into the
21
Gibson, Lance, & Benson, Garren. “Origin History and Uses of Oats and Wheat”, Iowa State University, Department of Agronomy, January, 2002.
22
Ontario Wheat Producers Marketing Board Five Year Corporate Plan September, 2007.
23
Ibid., pg 6
24
25
Ibid.
PLANSCAPE INC. 26
export market. In 1973, the OWPMB became responsible for commercially marketing all wheat produced in
Ontario. In 2003, producers returned to an open marketing system whereby producers had a choice of
marketing though the OWPMB or marketing through licensed elevators.26 Today, the Board’s mission is to
“represent Ontario wheat producers by providing strategic leadership initiatives that promote and improve
Ontario wheat”.27 In September 2008, corn, soybean and wheat producers voted to merge their organizations
into one, the Grain Farmers of Ontario.

2.2.2.2 Barley
An annual cereal grain, barley was one of the first
crops domesticated in Europe and Asia. Widely
adaptable, barley is more tolerant of salinity in the
soil than other crops but less tolerant to the cold
than wheat and ryes. Two classifications of barley
have been cultivated, two‐row and six‐row barley.
Two‐row barley has a higher protein content than
six‐row and is generally produced for livestock feed.
Barley, which is lower in protein content, is mainly
used for malts. However, in Ontario, barley is mainly
produced for livestock feed. Barley is also milled into
flour for breakfast cereals, health foods, and baby
foods.

About 8% of the barley produced in Canada is processed by the malting and brewing industries, both domestic
and foreign. Most of the remainder goes for livestock feed.28 Since 2001, there has been an increase in
production of malting barley. In 2001 there were 300 acres in production in Ontario; by 2006 there were
10,000 acres. In terms of climate, winter barley can be grown south of the 2700 CHU line but is not as hardy as
winter wheat.

Although barley production in Ontario has fluctuated over time, overall it has declined. In 1981, 466,602 acres
were harvested; in 2001 it was 295,000 acres.29 In 2007, from a seeded area of 170,000 acres, barley
production generated $8.4 million in farm cash receipts.30 Ontario barley production represents less than 1%
of total Canadian production which is focused in the prairie provinces where it is the third largest commodity
produced after wheat and canola. It is notable that acreage seeded in barley on the prairies in 2008 dropped
17.5% or 1.8 million acres.

The Oat and Barley Council in Ontario is a grower based organization committed to promote the sector and
foster linkages throughout the supply chain.

26
Ibid., pg 8
27
Ibid., pg 3
28
Klinck, Harold R., Cereal Crops, The Canadian Encyclopedia.
29
OMAFRA “Historical Provincial Estimates by Crops”, 1981 – 2004.
30
Statistics Canada, Farm Cash Receipts Catalogue No. 21‐011‐X, November, 2008
2.2.2.3 Oats
The common oat plant is a species of cereal grain grown for its seed, which is
known by the same name (usually in the plural, unlike other grains). While oats
are suitable for human consumption as oatmeal and rolled oats, one of the most
common uses is as livestock feed. Oats make up a large part of the diet of horses
and are regularly fed to cattle. Oats are also used in some brands of dog and
chicken feed.31 Ninety percent of the food oats consumed in North America are
grown in Canada.32

As shown on Figure 1a, historically oats were the leading grain produced in
Ontario. However, over time production has declined. In 1981, the area
harvested for oats was 326,383 acres; in 2004 it had declined to 100,000 acres.33

Currently less than 1% of Canadian production of oats comes from Ontario. In
2007, production of oats in the province generated $6.3 million in farm cash
receipts. Area under production in 2008 dropped to 75,000 acres, down 15,000 acres from the 100,000 acres
seeded in 2007. This is consistent with the trend on the prairies where 2008 plantings were down 19.4% or 4
million acres, from the 5.4 million acres seeded in 2007.34

Oat producers are supported by
the Oat and Barley Council in
Ontario, which is a grower based
organization committed to
promote the sector and foster
linkages throughout the supply
chain.

31
32
Fraser, Joanna & McCartney, Duane, “Fodder Oats in North America”
33
OMAFRA “Historical Provincial Estimates by Crops, 1981 – 2004”
34
Statistics Canada, Field Crop Reporting Series Catalogue No. 22‐022‐X, June 2008
PLANSCAPE INC. 28
2.2.2.4 Rye (Fall and Spring)
Rye is a grass grown extensively as a grain and forage crop. It is a member of the wheat tribe (Triticale) and is
closely related to barley and wheat. Rye is a multiple use crop used for cereal, forage and annual pasture. The
grain is used for flour, rye bread, rye beer, some whiskies, some vodkas, and animal fodder.

Rye production is focused in Eastern
Europe, Russia and North America.
However, historically, Canada has been
one of the top 10 producers in the world
and produces more rye than the United
States.35 Rye is hardier than wheat and is
sometimes seeded with it to produce a
mixture called Maslin. Because rye is
often seeded as a forage or pasture crop,
production statistics may understate the
actual area planted to rye.

In 2007, farm cash receipts generated by
rye in Ontario totaled $5.3 million.36 The
area seeded that year totaled 50,000
acres; in 2008 the area seeded increased
to 55,000 acres.37 Since 1981, rye
production has fluctuated from a high of 95,000 acres harvested in 1982, to a low of 25,000 acres in 1993.38

35
Allen, T. “The World Supply of Fall (Winter) Rye”, Crop Development Centre, University of Saskatchewan, 2002.
36
Statistics Canada, Farm Cash Receipts Catalogue No. 21‐011‐X, November 2008
37
38
OMAFRA Historical Provincial Estimates by Crops, 1981 – 2004
2.2.2.5 Mixed Grains
Mixed grains do not have a biological classification. They are comprised of any mix of wheat, oats, barley, rye
triticale, wild oats and domestic or wild oat groats. Because they are grown together, mixed grains are
excluded from other established grades. Growing grains in combination tends to reduce crop vulnerability.
Mixed grains are used for livestock feed.

Over time, mixed grain production in Ontario has continuously declined from 783,331 acres harvested in 1981
to 160,000 acres in 2004.39 In 2007, the area seeded to mixed grains was reported at 140,000 acres40 and the
area harvested was reported at 125,000 acres. In 2008, the area harvested dropped to 100,000 acres.41

2.2.2.6 Corn
Corn is unique as a crop because, unlike many of the other grains, it originated in North America. Corn has
been produced in Ontario for over 800 years and was an essential part of life for the native people. Corn
production in Canada is focused in Ontario. Of the nearly 1.4 million hectares of grain corn produced in
Canada, about 70% is grown in southern Ontario.42 The Ontario climate is well suited for the production of
corn. In southwestern Ontario, corn yields rival yields in the United States Corn Belt.

Corn production includes grain corn,
seed corn43 and fodder corn. Sweet
corn, which represents
approximately 5% of corn
production in Ontario, is classified as
a vegetable.44

Corn is used as livestock feed, for
alternative fuels and to produce
many food and industrial products.
Approximately 25% of all products in
a modern supermarket contain corn
and it is now used in a wide range of
products including absorbents
(disposable diapers), non petroleum
based plastics and for fuel.45

39
OMAFRA Historical Provincial Estimates by Crops, 1981 – 2004
40
41
OMAFRA Estimated Areas, Yield, Production and Farm Value of Specified Field Crop, 2001‐2008.
42
43
Statistics for grain corn include seed corn.
44
Statistics for sweet corn are not included in the statistics referenced in this report.
45
Ontario Corn Producers Association “Corn and Canada” http://www.ontariocorn.org
PLANSCAPE INC. 30
Figure 8 – Products That Use Corn
Adhes i ves (gl ues , pa s tes , muci l a ges , gums , etc) Frozen Foods
Al umi num Fructos e
Anti bi oti cs (Peni ci l l i n) Fuel Etha nol
As bes tos Ins ul a ti on Gyps um Wa l l boa rd
As pi ri n Ink for Sta mpi ng Pri ce i n Stores
Automobi l es (everythi ng on wheel s ) Ins ecti ci des

Cyl i nder Hea ds Ins ta nt Coffee & Tea
Etha nol ‐ Fuel & Wi nds hi el d Wa s her Fl ui d Ins ul a ti on, Fi bregl a s s

Spa rk Pl ugs Ja ms , Jel l i es a nd Pres erves
Syntheti c Rubber Fi ni s hes Ketchup
Ti res La tex Pa i nt
Ba by Food Lea ther Ta nni ng
Ba tteri es , Dry Cel l Li cori ce
Beer Li ves tock Feed
Brea kfa s t Cerea l s Ma l ted Products

Ca ndi es Ma ga ri ne
Ca nned Vegeta bl es Ma yonna i s e

Ca rbona ted Bevera ges Mus ta rd ‐ Prepa red
Chees e Sprea ds Pa per Boa rd (Corruga ti ng, La mi na ti ng, Ca rdboa rd)
Chewi ng Gum Pa per Ma nufa cturi ng
Chocol a te Products Pa per Pl a tes & Cups
Coa ti ngs on Wood, Pa per & Meta l Pea nut Butter
Col our Ca rri er i n Pa per & Texti l e, Pri nti ng Pha rma ceuti ca l s ‐ The Li fe Li ne of The Hos pi ta l
Corn Chi ps Pota to Chi ps

Corn Mea l Rugs , Ca rpets

Cos meti cs Sa l a d Dres s i ng
C.M.A. (Ca l ci um Ma gnes i um Aceta te) Sha vi ng Crea m & Loti ons
Cra yon a nd Cha l k Shoe Pol i s h
Degra da bl e Pl a s ti cs Soa ps a nd Cl ea ners
Des s ert Powders Soft Dri nks
Dextros e (Intra venous Sol uti ons , Ici ng Suga r) Sta rch & Gl ucos e (Over 40 Types )
Di s pos a bl e Di a pers Syrup
Dyes Ta cos , Torti l l a s
Edi bl e Oi l Texti l es

Ethyl a nd Butyl Al cohol Toothpa s te
Expl os i ves ‐ Fi recra ckers Wa l l pa per

Fi ni s hed Lea ther Whea t Brea d
Fl our & Gri ts Whi s key
Yogurts

The Ontario Corn Producer’s Association, established in 1983, is a non–profit organization that represents the
interests of approximately 21,000 corn producers. As noted before, in September 2008, corn, soybean and
wheat producers voted to amalgamate to create a new organization, the Grain Farmers of Ontario.

Seed corn is a specialized area of production which is focused in southern and southwestern Ontario where
conditions support consistent production. Approximately 30,000 acres of seed corn is produced annually by
500 seed corn growers who have been represented for more than 60 years by the Seed Corn Growers of
Ontario. Hybrid seed corn production involves the crossing of two inbred lines to create varieties that
demonstrate certain characteristics such as drought resistance or “standability”, or that are suited to specific
conditions and climates.46 Ontario’s seed corn is internationally recognized for its superior quality.

Corn accounts for the largest area seeded in Ontario and generates farm cash receipts second only to
soybeans. As shown in Figure 1a, the area harvested peaked in the early eighties and declined with some
fluctuation during the 1990s. 2001 saw an increase in area harvested, followed by a decline to a low of 1.56
million acres in 2006. In 2007, acreage seeded rose to 2.1 million acres but fell again in 2008 to 1.8 million
acres. These fluctuations reflect prices which dropped from an average of $154.03 per mt in 2003 to $106.96
in 2006 and then rose in 2007 to $148.62. The drop in seeding in 2008 was counter to the trend; the average
price in 2008 was $180.12 per mt.47

2.2.2.7 Beans
Beans go by a number of different names but are essentially divided into two groups, white or navy beans and
coloured beans. Despite having different names in different countries, most dry edible beans are members of
the scientific classification “phaseolus vulgaris”. Beans are an excellent source of food being cholesterol free,
low in fat and a high source of dietary fibre. They contain a host of vitamins and have the advantage of storing
easily and maintaining their nutritional properties over time.48

Both coloured beans and white beans are grown in Ontario. Each category of beans is represented by a
different organization although statistics regarding the two separate types of products are often combined for
reporting purposes.

Coloured beans include a variety of beans as
illustrated below. Those grown in Ontario
include adzuki, cranberry, dark red kidney, Dutch
brown, great northern, light red kidney, pinto,
black turtle and white kidney or yellow–eye.
Although coloured beans are grown in all areas
of the province, the majority, or 88% of annual
production is grown in western and southern
Ontario. The counties of Oxford, Middlesex,
Perth and Huron account for 70% of total
production. Ontario is second in Canada, to
Manitoba, in coloured bean production.

46
Seed Corn Growers of Ontario www.seedcorngrowers.on.ca
47
Ontario Corn Producers Association, Facts and Figures http://www.ontariocorn.org
48
www.ontairo beans.on.ca
PLANSCAPE INC. 32
Field beans are classified into various types
(market classes), based on size, shape, shade
and pattern of colour of the beans.
From left to right:
Top row‐ OAC Seaforth, Harokent. Harofleet,
Steuben yellow‐eye
Second row‐ small white pea bean, pinto, red
Mexican, pink
Third row‐ dark red kidney, light red kidney,
white kidney, small white
Fourth row‐ great northern, cranberry, black,
white marrow
Fifth row‐ Jacob's cattle, brown, light brown,
snap bean type
‐ Agriculture Canada

Coloured beans are baked and pureed and used for a variety of dishes including soups, salads, casseroles and
stews, depending on the end user. The largest importers of Canadian beans are the United States, the United
Kingdom, Italy and Japan.

Coloured bean production in Ontario has been growing since 1991 when 14,000 acres were harvested. Since
then the area harvested has increased significantly to a high of 75,000 acres in 200249 and again in 2007. In
2008, the area seeded declined to 55,000 acres.50

The Ontario Coloured Bean Grower’s Association was created in 1985 to address concerns about research and
to support the growers in dealing with various government programs and issues. This organization is not a
marketing board but is created under Section 13 of the Farm Products Marketing Act requiring contributions
from all producers.

White beans or navy beans, are the beans that are referred to as “baked beans” when mixed with tomato
sauce. White beans have been grown in Ontario since the early 1900s and are the dominant type of beans
produced in the province. Ontario leads the country in white bean production.

White bean producers are represented by the Ontario Bean Producers Marketing Board, a non profit
organization created in 1944. This organization has a long and progressive history of support for growers. It
acted as a marketing board until 1997, when the marketing plan was opened to “Pricing Alternative Contracts”
which allowed growers to market directly to elevators and not be part of the pooling process. In 2001, the
marketing plan was opened completely.51 Now the OBPMB acts as a resource in responding to the needs of its
2000 members.

White bean production occurs across the province but is focused in south and western Ontario. Huron is the
largest producer; in 2006, the counties of Middlesex, Bruce, Huron and Perth accounted for 67% of the
49
50
51
www.ontariobeans.on.ca/history
provincial production. As noted, white bean production has a long history in Ontario and is consistently higher
than coloured bean production. Ontario continues to dominate Canadian white bean production but
Manitoba has been increasing production over the past 10 years.52

Ontario producers export approximately 80% of their product to over 70 countries world wide. The largest
importers of white beans are the United Kingdom, the United States and Europe.

The area seeded to white beans declined from 85,000 acres in 2002, down to 80,000 acres in 2008, similar to
the the trend experienced with coloured beans. However, this decline was not as large as the decline in
coloured bean acreage seeded. Between 1981 and 2008, the harvested acreage for white beans has fluctuated
from a low of 35,000 acres in 1998 to a high of 135,000 acres in 1990.53

2.2.2.8 Hay and Clover
The other commodity that is included in this report
under the category of grains and oilseeds is hay and
clover. Hay is a crop which is extensively cultivated
but which, because of its high usage on farm, does
not generate large economic returns.

In 2007, Ontario generated $53,094,000 in farm cash
receipts for hay, which was second only to Alberta in
value and accounted for 21% of the Canadian total.54
The degree to which farm cash receipts under
represents hay production is illustrated by fact that
applying farm value per ton to total production in
Ontario in 2007 generates a total value of $580,200,000 for hay.55

In terms of volume, Ontario’s production has remained
constant at 2.5 million acres harvested since 1981.56 The
only other commodity that comes close to hay in harvested
area is soybeans.

52
53
Ibid.
54
Statistics Canada, Farm Cash Receipts Catalogue No. 21‐011‐X, November, 2008
55
OMAFRA “Estimated Areas, Yield, Production and Farm Value of Specified Field Crop, 2001‐2008.”
56
PLANSCAPE INC. 34
2.3 Conclusion
This brief summary of the characteristics of the
various commodities that comprise the grains and
oilseeds sector confirms its depth and diversity. In
Ontario, the grains and oilseeds industry has grown
to be a critical component of the economy. Beef
and pork producers, along with dairy, egg and
poultry producers all rely on grains and oilseeds for
feed and other factors of production. Grains and
oilseeds grown in Ontario are critical inputs for food
processing industries, and the availability of these
locally‐grown commodities is a key anchor and
attraction for food processing investment and
employment in Ontario. A healthy grains and
oilseeds sector is critical to the development of the
alternative fuels industry ‐ a key element in
Ontario's environmental strategy going forward.57

57
Ontario Grain & Oilseed Group – Position Summary, Ontario Corn Producers Association, March, 2005,
CHAPTER 3
PROFILE OF THE GRAINS AND OILSEEDS
SECTOR IN ONTARIO

To understand the role that grains and oilseeds
play in the provincial economy it is important to
understand the characteristics of the sector.
This chapter provides a profile of the sector and
details about its specific characteristics.

3.1 Area of Production
In providing a profile of the grains and oilseeds sector in Ontario, the analysis will focus on area under
production rather than number of operations. Because of the approach Statistics Canada takes to farm
classification, using numbers of operations rather than area under production would under represent the
grains and oilseeds sector.1 Figure 9 illustrates the under representation. The Statistics Canada total for grains
and oilseeds farmland in 2006, based on number of farms classified as grains and oilseeds was 4,230,169 acres.
Using figures for seeded and harvested area (these figures include hay as part of grains and oilseeds
production), the total is 8,636,333 acres seeded; 8,395,000 area harvested.2 In total in 2006, there were
13,310,216 acres of farmland reported by Statistics Canada for Ontario; therefore grains and oilseeds
commodities occupied 66% of Ontario farmland in 2006.

Figure 9 – Area (acres) of Total Farmland, Grains and Oilseeds Farmland and Grains and Oilseeds
Seeded Land in Ontario, 2006
% of Total
Total Farmland 13,310,216

Grains and Oilseeds Farmland

(Statistics Canada) ‐ Based on Grains & 4,230,169 32%

Oilseeds Farms
Grains and Oilseeds Seeded (OMAFRA) 8,636,800 65%
Grains and Oilseeds Harvested
8,395,000 63%
(OMAFRA)

Figures 10a and b contain a breakdown of area of production by commodity in Ontario in 2001 and 2006. In
terms of acres seeded, the largest field crop by area in Ontario is soybeans, followed by corn for grain, then
wheat. Fodder corn, barley, mixed grains, oats and beans follow in descending order. Canola is the smallest
crop.

Figure 10a – Area of All Grains and Oilseeds Crops in Ontario, 2001 – 2006
2001 2006
Crops Acres Seeded Acres Seeded
Total 8,128,000 8,573,360
Winter Wheat 545,000 1,028,476
Spring Wheat a 125,500 206,914
b
Oats 102,000 131,952
Barley b 309,000 221,029
Mixed Grain b 218,000 173,454
Grain Corn 2,000,000 1,577,862
Fodder Corn 320,000 320,759
Canola x 18,575
Soybeans 2,250,000 2,155,884
Beans 58,500 163,495

Hay c‐d 2,200,000 2,574,960

a (2006) Includes durum wheat where grown except in Lanark, Renfrew, Stormont & Glengarry, Manitoulin, and Timiskaming.
b (2001 & 2006)‐ Represents total area seeded including area cut for fodder.
c (2006) ‐ Includes hay and forage seed area for most counties. For a few counties, small areas of forage seed were suppressed in Census results due to confidentiality.
d (2001) – Includes area of forage seed. ‐ x – Information not available for 2001
1
Statistics Canada classifies farms on the basis of the commodity that generates 50% of gross farm receipts for the operation.
2
The figures contained in this chapter are generally a summation of statistics. Unless otherwise specified figures referred to in this chapter are to area
seeded.
Figure 10b – Area of Seeded Grains and Oilseeds Crops in Ontario, 2001 – 2006

2,500
2001 Acres Seeded

2006 Acres Seeded

2,000

Acres (Thousands)
1,500

1,000

500

0

Winter Spring Oats Barley Mixed Grain Grain Corn Fodder Corn Canola Soybeans Beans
Wheat Wheat

a (2006) Includes durum wheat where grown except in Lanark, Renfrew, Stormont & Glengarry, Manitoulin, and Timiskaming.
b (2001 & 2006)‐ Represents total area seeded including area cut for fodder.
c (2006) ‐ Includes hay and forage seed area for most counties. For a few counties, small areas of forage seed were suppressed in Census results due to confidentiality.
d (2001) – Includes area of forage seed. x – Information not available for 2001

This ranking has remained consistent over
time; however, as shown on Figures 11a, b &
c, levels of production have varied from year
to year. If corn for grain and fodder corn are
combined, corn occupied the largest area in
four of the years between 2001 and 2008 and
soybeans were top in the other four years.
Overall, during the period from 2001 to 2007,
there has been a slight increase in total area
seeded for grains and oilseeds. Soybean
production increased steadily. Corn and
wheat production experienced fluctuations
that continued in 2008 when corn production,
after peaking at 2.1 million acres in 2007,
dropped to 1.8 million acres; and wheat
production, after dropping to 775,000 acres in
2007, increased to 1,380,000 acres in 2008, due to a record increase in area seeded for winter wheat.3

3
Statistics Canada Field Crop Reporting Series, Preliminary Estimates of Principal Field Crops Areas 2007‐2008, Catalogue No. 22‐002‐X
PLANSCAPE INC. 38
Figure 11a – Area Seeded by Commodity Type, 2001 – 2007
a
Area Seeded (Acres)
Crop
2001 2002 2003 2004 2005 2006 2007
Wheat 670,500 750,000 1,105,000 890,000 985,000 1,235,400 775,000
Fall Rye 67,000 70,000 65,000 70,000 60,000 63,200 50,000
Oats 102,000 115,000 120,000 120,000 125,000 132,000 100,000

Barley 309,000 335,000 265,000 265,000 265,000 221,000 170,000

Mixed Grain 218,000 210,000 190,000 180,000 175,000 173,500 140,000
Grain Corn 2,000,000 1,925,000 1,800,000 1,700,000 1,600,000 1,577,900 2,100,000
Canola 36,500 60,000 50,000 55,000 50,000 18,600 35,000
Soybeans 2,250,000 2,075,000 2,000,000 2,325,000 2,325,000 2,155,900 2,240,000
Dry White Beans 58,500 85,000 55,000 70,000 90,000 92,300 85,000

Coloured Beans 63,000 75,000 50,000 70,000 100,000 71,200 75,000

Fodder Corn 320,000 325,000 325,000 310,000 290,000 320,800 300,000

Hay 2,515,000 2,520,000 2,530,000 2,535,000 2,550,000 2,575,000 2,575,000
Total 8,609,500 8,545,000 8,555,000 8,590,000 8,615,000 8,636,800 8,645,000

Figure 11b – Seeded Area (Acres) for Wheat, Grain Corn and Soybeans in Ontario, 2001 ‐ 2007
2,500

2,000

Acres Seeded (Thousands)

1,500

1,000

500

0

2001 2002 2003 2004 2005 2006 2007 Year

Wheat Grain Corn Soybeans

a – Figures represent seeded area for all crops except for winter wheat and rye, where they represent area remaining for harvest as of June 1.

Figure 11c – Total Seeded Area (Acres) for Grains and Oilseeds in Ontario, 2001 – 2007
8,660

8,640

8,620

Acres Seeded (Thousands)

8,600

8,580

8,560

8,540

8,520

8,500

8,480

2001 2002 2003 2004 2005 2006 2007
Total 8,609,500 8,545,000 8,555,000 8,590,000 8,615,000 8,636,800 8,645,000

a – Figures represent seeded area for all crops except for winter wheat and rye, where they represent area remaining for harvest as of June 1.

PLANSCAPE INC. 40
3.2 Levels of Production
In terms of production, as shown on Figures 11a, b & c, yield per acre has increased for all commodities with
several, specifically corn for grain and winter wheat, experiencing significant increases. Production has also
increased overall, but, as shown on Figures 12a, b & c, there has been considerable volatility in the levels of
production. The trends in production are consistent with the fluctuation in prices as can be seen in Figures
13a & b.

Figure 12a – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
120.0

100.0

80.0

bu/acre
60.0

40.0

20.0

0.0
1981 1986 1991 1996 2001

Winter Wheat Spring Wheat Rye Oats Barley
Mixed Grain Grain Corn Canola Soybeans Flaxseed

Flaxseed ‐ Data is not available after 1990.

Figure 12b – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
25.0
Dry White Beans

Coloured Beans

20.0

15.0
cwt/acre

10.0

5.0

0.0
1981 1986 1991 1996 2001
Coloured Beans ‐ Data is not available prior to 1996.
Figure 12c – Historical Provincial Estimates by Crop, Census Years (1981 – 2001)
14.0

12.0

10.0

(tons/acre)
8.0

6.0

4.0

2.0

0.0

1981 1986 1991 1996 2001

Fodder Corn Hay

Figure 13a – Historical Provincial Estimates by Crop – Census Years (1981 – 2001)
250,000

200,000

150,000

'000 bu

100,000

50,000

0

1981 1986 1991 1996 2001

Winter Wheat Spring Wheat Rye Oats Barley

Mixed Grain Grain Corn Canola Soybeans Flaxseed

Flaxseed ‐ Data is not available after 1991.

PLANSCAPE INC. 42
Figure 13b – Historical Provincial Estimates by Crop – Census Years (1981 – 2001)
3,000
Dry White Beans

Coloured Beans

2,500

2,000

'000 cwt
1,500

1,000

500

0
1981 1986 1991 1996 2001

Coloured Beans ‐ Data is not available prior to 1992.

Figure 13c – Historical Provincial Estimates by Crop – Census Years (1981 – 2001)
9,000
Fodder Corn
Hay
8,000

7,000

6,000

5,000
'000 tons

4,000

3,000

2,000

1,000

0
1981 1986 1991 1996 2001

Figure 14a – Price of Ontario Grains and Oilseeds, 2001 ‐ 2007
Price $/Tonne
Crop 2001 2002 2003 2004 2005 2006 2007
Winter Wheat $138 $154 $148 $130 $125 $120 $251
Oats $174 $162 $146 $140 $138 $156 $191
Barley $133 $142 $127 $114 $102 $133 $192
Mixed Grain $114 $124 $120 $110 $100 $109 $175

Grain Corn $135 $155 $143 $116 $107 $149 $161

Soybeans $269 $312 $363 $283 $249 $266 $371
White Beans $606 $507 $663 $634 $515 $439 $601
Fodder Corn $26 $27 $26 $24 $24 $27 $27
Hay $77 $99 $94 $100 $120 $90 $111
Spring Wheat $153 $208 $187 $170 $165 $177 $284
Canola $265 $392 $350 $341 $193 $303 $466

Figure 14b – Prices of Ontario Grains and Oilseeds, 2001 ‐ 2007
$800

$700

$600

$500

Price $/Tonne

$400

$300

$200

$100

$0
2001 2002 2003 2004 2005 2006 2007 Year

Winter Wheat Oats Barley Mixed Grain Grain Corn Soybeans

White Beans Fodder Corn Hay Spring Wheat Canola

PLANSCAPE INC. 44
Figure 15 - Ontario Geographic Zones
Northern
Ontario
Lake Superior
Georgian
Bay
Eastern
Legend Central Ontario
Lake Huron
Ontario
Ontario Geographic Zones Western
Central Ontario Ontario
Lake Ontario
Eastern Ontario Lake Southern Ontario
Northern Ontario Michigan
ª
Southern Ontario Lake Erie
Western Ontario
Note:
This map is for general illustration purposes only. For boundary
interpretations, please contact the Planning & Development
Departments of hte City, Region, County or District.
250 125 0 250 500
Source: Statistics Canada July 8, 2009 Kilometers

3.3 Regional Distribution
For reporting purposes, Statistics Canada divides Ontario into five regions; central, western, eastern, northern,
and southern as shown on Figure 15. Based on 2006 statistics, as shown on Figure 16, the southern region
leads in area seeded for grains and oilseeds with 36% of the total area, followed closely by the western region
with 33%; the eastern region with 15%, the central region with 12%; and the north region with 4%.

Figure 16 – Total Crop Distribution in Ontario by Region
Area (Acres) Seeded ‐ 2006
Total ‐ 8,753,360
(Including Hay)

Northern Ontario,
369,064
Eastern Ontario, 4% Southern Ontario,
1,325,212 3,044,087
15% 36%

Central Ontario,

1,013,242
12%

Western Ontario,
2,819,167
33%
If hay is excluded from area seeded, as shown on Figure 17, the proportional split emphasizes the dominance
of the southern region in grains and oilseeds production.

PLANSCAPE INC. 46
Figure 17 – Total Crop Distributions in Ontario by Region
Area (Acres) Seeded ‐ 2006
Total ‐ 5,998,400
(Excluding Hay)

Eastern Ontario, Northern Ontario,
642,589, 88,112
11% 1%

Southern Ontario,
Central Ontario, 2,731,943
520,187 45%
9%

Western Ontario,
2,012,981
34%

Figures 18 “a to k” show a proportional breakdown of commodities by region.
From this breakdown, certain patterns stand out:

• Certain crop types are particularly well suited to the southwestern Ontario climate. Soybeans for
example require a relatively long growing season (100‐140 days) and warm temperatures. Canadian
production is concentrated in southwestern Ontario4 and specifically in the southern region. Winter
wheat production is also focused in southern Ontario where climatic conditions are most favourable;
• Some commodities (oats, hay, spring wheat and grain corn) are produced across all regions;
• The western region dominates in mixed grain, barley, fodder corn, and beans; and
• Although area seeded to canola is small, 25% of it is in Northern Ontario.

4
Figure 18a – Winter Wheat Distributions in Ontario
Winter Wheat
‐ Area (Acres) Seeded ‐ 2006
Total ‐ 1,028,476

Eastern Ontario
Central Ontario 10,621 Northern Ontario
4,427
87,050

Southern Ontario
Western Ontario 564,372
362,006

Figure 18b – Spring Wheat Distributions in Ontario

Spring Wheat
Total 206,914

Northern Ontario
16,837 Southern Ontario
35,943
Eastern Ontario
64,613

Central Ontario Western Ontario
10,443 79,078

Figure 18c – Oat Distribution in Ontario

Oat
Total ‐ 131,952

Northern Ontario
19,839 Southern Ontario
25,417
Eastern Ontario
25,012

Western Ontario
31,454
Central Ontario
30,230

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Figure 18d – Barley Distribution in Ontario

Barley
Total ‐ 221,029

Northern Ontario Southern Ontario
25,329 11,657
Eastern Ontario
37,903

Central Ontario Western Ontario
30,461 115,679

Figure 18e – Mixed Grain Distribution in Ontario

Mixed Grain
Total ‐ 173,454
Western Ontario
109,184

Central Ontario
29,895
Eastern Ontario
Southern Ontario Northern Ontario 17,183
10,424 6,768

Figure 18f – Grain Corn Distribution in Ontario

Grain Corn
Total ‐ 1,577,862
Eastern Ontario Northern Ontario
209,649 1,911
Central Ontario Southern Ontario
142,505 719,909

Western Ontario
503,888

Figure 18g – Fodder Corn Distribution in Ontario
Fodder Corn
Total ‐ 320,759

Northern Ontario
Eastern Ontario 4,021 Southern Ontario
65,594 69,646

Central Ontario
36,311
Western Ontario
145,187

Figure 18h – Canola Distributions in Ontario

Canola
Total ‐ 18,575

Eastern Ontario 369
Northern Ontario
Central Ontario 4,578
4,292

Southern Ontario
Western Ontario 3,119
6,217

Figure 18i – Soybean Distributions in Ontario

Soybean
Total ‐ 2,155,884
Western Ontario
145,187

Central Ontario
36,311

Southern Ontario
69,646
Northern Ontario
Eastern Ontario
65,594
4,021

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Figure 18j – Beans Distributions in Ontario

Bean
Total ‐ 163,495
Western Ontario
84,714

Central Ontario
Southern Ontario 6,260
67,876
Northern Ontario Eastern Ontario
17 2,040

Figure 18k – Hay Distributions in Ontario

Hay
Total ‐ 2,574,960

Northern Ontario Southern Ontario
280,952
312,144
Eastern Ontario
682,623

Western Ontario
806,186

Central Ontario
493,055

Figure 19 maps the municipal ranking in grains and oilseeds production. Huron County leads production with
583,873 acres seeded in 2006. Three counties in the southern region (Middlesex, Lambton, and Chatham–
Kent) and Perth County in the western region all had in excess of 400,000 acres seeded in 2006. Counties with
in‐excess of 300,000 acres seeded included Haldimand‐Norfolk and Oxford in the southern region; Bruce, Grey,
Simcoe and Wellington in the western region; and Stormont, Dundas and Glengarry in the central region. The
north has one region, Timiskaming, reporting over 100,000 acres seeded in 2006.

Figure 20 shows the percentage change in area seeded between 2001 and 2006 by commodity. Overall, in
Ontario there was an increase in area seeded of 5.5%. A significant component of the increased acreage went
into wheat, a trend that continued into 2008. Corn for grain experienced a slight decline, increased in 2007
and returned to levels slightly higher than 2006 in 2008. Generally the statistics confirm that production is
expanding while at the same time producers are adjusting to prices and market demands.

Figure 20 – Percentage of Change in Area Seeded by Commodity Type
200.0%

150.0%

100.0%

Percentage Change

50.0%

0.0%

‐50.0%
Wheat Oats Barley Mixed Grain Grain Corn Fodder Corn Canola Soybeans Beans Hay
84.2% 29.4% ‐28.5% ‐20.4% ‐21.1% 0.2% ‐4.2% 179.5% 17.0%

PLANSCAPE INC. 52
FIGURE 19
ONTARIO GRAINS and OILSEEDS
VALUE CHAIN STUDY
TOTAL AREA SEEDED
July 8, 2009
Lake Superior
Georgian
Lake Michigan Bay
Lake Huron
Lake Ontario
Area of Grains and Oilseeds Operations (Acres)

0 - 99,000 Acres Lake Erie
100,000 - 199,000 Acres
200,000 - 299,000 Acres
300,000 - 399,000 Acres
400,000 - 499,000 Acres
500,000 + Acres
Source: Geomatics Canada http://ess.nrcan.gc.ca/geocan/index_e.php;
www.omafra.gov.on.ca/english/stats/crops/index.html
OMAFRA Sources - Statistics Canada, 2006 Census of Agriculture;
Statistics Canada, Field Crop Reporting Series (Catalogue No. 22-202-XIB);
0
ª
100 200
Km
NOTE:
This map is for general illustration puposes only. For boundary
interpretations, please contact the Planning & Development
Agricorp; Economic Development Policy Branch Departments of the City, Region, County or District.
Figure 21 shows the percentage change of area seeded by region. Northern Ontario is the most volatile but
also has the smallest area under production, so percentage changes will be magnified. Southern Ontario is the
most stable in terms of levels of production.

Figure 21 – Percentage Change in Area Seeded by Region

18.0%

16.0%

14.0%

12.0%

Percentage Change
10.0%

8.0%

6.0%

4.0%

2.0%

0.0%
Southern Ontario Western Ontario Central Ontario Eastern Ontario Northern Ontario
2.6% 6.2% 7.1% 6.6% 16.5%

PLANSCAPE INC. 54
3.4 Value of Production
Grains and oilseeds production is the backbone of agriculture. While a significant portion of the production is
sold into the market for cash, there is also a component that is consumed on farm and that is sold farm to
farm. As noted previously in this report, depending on the statistics being used to report activity, aspects of
certain transactions are not counted.

To address this, the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has developed a
reporting system that assigns value based on production, as opposed to sales. For each crop year, total
production is calculated and then a value, based on the commodity prices at the time, is assigned to total
production. Figure 22 provides a summary of the results of applying this approach to the 2006 crop year.
Figure 23 then provides a summary of farm value for grains and oilseeds commodities for the years from 2001
to 2007. Based on this evaluation, grains and oilseeds, as defined in this report, generated an average of $2.5
billion in farm value per year between 2001 and 2007. As shown on Figure 24, this value has continued to
increase.

Figure 22 – Estimated Area, Yield, Production and Farm Value of Specified Field Crops, Ontario, 2006

2006

Crops Hectares Hectares Yield (tonnes Production Farm Value ($ Total Farm
a
Seeded Harvested per hectare) ('000 tonnes) per tonne) Value ($'000)

Winter Wheat 416,200 414,800 5.6 2,340.5 120.20 281,300
Spring Wheat 83,700 83,800 3.4 280.3 176.70 49,500
Fall Rye 25,600 20,200 2.3 45.7 149.20 6,800

Oats 53,400 44,500 2.5 113.4 155.70 17,600

Barley 89,400 85,000 3.4 290.7 132.60 38,500

Mixed Grain 70,200 56,700 3.0 167.8 109.30 18,300
Grain Corn 638,500 621,200 9.4 5,867.7 148.80 873,200
Canola 7,500 6,100 2.3 14.2 302.70 4,300
Soybeans 872,500 862,000 3.1 2,667.1 265.50 708,100
Dry White Beans 37,300 36,400 2.3 83.5 439.10 36,700

Coloured Beans 28,800 28,300 2.2 62.4 587.00 36,600

Fodder Corn 129,800 127,500 38.4 4,898.8 26.46 129,600
b
Hay 1,042,100 1,011,700 6.0 6,032.8 89.92 542,400

Total 3,495,000 3,398,200 22,864.9 2,703.18 2,742,900
a – Figures represent seeded area for all crops except Winter Wheat and Rye, where they represent area remaining for harvest as of June 1.
b – Figure for 1998 and onwards represent two changes: Area of harvest is collected and reported for the first time and production is reported at a standard dry matter content of 90%. Therefore, 1998
yields are not comparable with the yields of prior years. Hay area estimates include forage seed.

Figure 23 – Estimated Farm Value of Specified Field Crops, Ontario, 2001 – 2007
OMAFRA Farm Value $ ('000)
Crops
2001 2002 2003 2004 2005 2006 2007

Wheat $173,400 $223,800 $335,400 $225,500 $228,400 $330,800 $370,800

Rye $5,700 $6,000 $8,700 $9,900 $7,300 $6,800 $6,600
Oats $16,700 $16,700 $18,000 $15,200 $14,400 $17,600 $16,800
Barley $56,400 $56,200 $44,800 $38,600 $29,800 $38,500 $41,900
Canola $8,300 $17,200 $14,300 $15,800 $4,800 $4,300 $12,900
Soybeans $343,600 $595,000 $627,000 $700,200 $643,800 $708,100 $740,900
Grain Corn $694,900 $855,400 $793,700 $618,300 $616,100 $873,200 $1,127,500
Fodder Corn $76,900 $97,600 $108,600 $104,600 $101,500 $129,600 $109,100
Mixed Grain $27,000 $26,600 $25,400 $21,500 $17,200 $18,300 $25,700
Beans $38,400 $69,400 $62,800 $82,400 $97,500 $73,300 $69,900

Hay $345,800 $465,100 $513,800 $526,200 $604,300 $542,400 $580,200

Total $1,787,100 $2,429,000 $2,552,500 $2,358,200 $2,365,100 $2,742,900 $3,102,300

Figure 24 – Total Farm Value of Ontario Grains and Oilseeds, 2001 ‐ 2007

$3,500

$3,000

$2,500

Farm Value $ (Thousands)

$2,000

$1,500

$1,000

$500

$0
2001 2002 2003 2004 2005 2006 2007
Total Farm Value $1,787,100 $2,429,000 $2,552,500 $2,358,200 $2,365,100 $2,742,900 $3,102,300

Year

To calculate agriculture’s contribution to gross domestic product (GDP), Statistics Canada reports on farm cash
receipts. This number represents value of sales when they occur (i.e. when ownership first changes hands)
and does not include farm to farm sales. Therefore it cannot be used to measure gross output of the
agricultural sector. The calculation does include subsidies to encourage production, compensation for low
market returns, payments to stabilize income and to compensate for crop losses.5

Farm cash receipts are calculated on calendar year, not crop year so in instances where crop values change
dramatically from year to year it is possible for farm cash receipts to exceed productive value. Therefore direct
comparisons of the two sets of statistics are not appropriate. However, when used in combination with
5
Statistics Canada Catalogue No. 21‐011‐X Farm Cash Receipts, November 2008.pg 37
PLANSCAPE INC. 56
productive value as calculated by OMAFRA, farm cash receipts provide a second measure of value. Figure 25
provides a summary of farm cash receipts generated by grains and oilseeds between 2001 and 2007. Figure 26
provides a comparison of farm productive value and farm cash receipts in 2007 and Figure 27 graphs the two
values over time.

Figure 25 – Estimated Farm Productive Value of Specified Field Crops and Farm Cash Receipts, Ontario 2007
2007
Crops OMAFRA Farm Statistics Canada Farm
Value $ ('000) Cash Receipts $ ('000)
Wheat 370,800 253,659
Rye 6,600 5,346
Oats 16,800 6,272
Barley 41,900 8,474
Canola 12,900 9,256
Soybeans 740,900 797,909

Corn 1,127,500 651,816

Fodder Corn 109,100 N/A
Mixed Grain 25,700 N/A
Beans 69,900 68,073
Hay 580,200 53,094
Total 3,102,300 1,853,899

Figure 26 – Farm Cash Receipts by Commodity Type, 2001 ‐ 2007
Farm Cash Receipts
Crops
2001 2002 2003 2004 2005 2006 2007
Wheat $125,889 $218,551 $302,706 $163,328 $194,692 $291,859 $253,659

Oats $5,618 $7,434 $7,102 $6,198 $5,612 $6,197 $6,272

Barley $10,272 $11,336 $10,603 $9,296 $6,898 $6,548 $8,474
Rye $4,585 $4,783 $6,830 $7,920 $5,815 $4,755 $5,346
Canola $8,376 $14,924 $12,777 $11,337 $6,640 $3,107 $9,256
Soybeans $448,830 $475,537 $607,913 $508,644 $623,702 $546,796 $797,909
Corn $388,167 $478,728 $440,693 $436,195 $360,761 $460,963 $651,816

Dry Beans $22,383 $54,968 $45,175 $66,531 $92,274 $75,843 $68,073

Hay and Clover $39,944 $40,348 $47,659 $49,347 $55,685 $51,464 $53,094
Total $1,054,064 $1,306,609 $1,481,458 $1,258,796 $1,352,079 $1,447,532 $1,853,899

Figure 27 – Total Farm Productive Value & Farm Cash Receipts of Ontario Grains and Oilseeds, 2001 – 2007
3,500

3,000

2,500

Farm Value $ (Thousands)

2,000

1,500

1,000

500

0
2001 2002 2003 2004 2005 2006 2007
Total Farm Value 1,787,100 2,429,000 2,552,500 2,358,200 2,365,100 2,742,900 3,102,300
Farm Cash Receipts 1,054,064 1,306,609 1,481,458 1,258,796 1,352,079 1,447,532 1,853,899
Year

Regardless of the measure used, either farm productive value, which maximizes, or farm cash receipts, which
under represents the value of the sector, the grains and oilseeds sector is a significant economic force in
Ontario. Annually, the combined farm cash receipts generated by the commodities discussed in this report are
in excess of $1.8 billion.

Gross farm receipts is a third value that is placed on agricultural production. It has not been discussed in this
report because as was explained in the introduction, the method used to calculate it under represents the
sector. Farm productive value, considered in conjunction with farm cash receipts, provides a more accurate
assessment of the economic value of the sector.

PLANSCAPE INC. 58
3.5 Number of Farms
As previously indicated in this report, for reporting on statistics such as number of farms, Statistics Canada
uses a system that classifies farms based on 50%+ of gross farm receipts (GFR) generated. Therefore,
operations that produce grains and oilseeds, but attribute 50% or more of their GFR’s to another commodity,
will not be counted as grains and oilseeds operations. This explains the statistics in Figure 28 where, despite
the fact that 66% of Ontario farmland was seeded for grains and oilseeds in 2006, only 22.8% of farms
reporting were classified as grains and oilseeds operations.

Figure 28 – Ontario Farm Type by Farms Reporting & Percentage of Total, 2001 – 2006
2001 2006
Ontario Farm Type Farms Percent of Farms Percentage
Reporting Total Reporting of Total
Dairy Cattle and Milk Production 6,314 10.6% 4,937 8.6%
Beef Cattle Ranching and Farming, Including Feedlots 13,464 22.5% 11,052 19.3%
Hog and Pig Farming 2,507 4.2% 2,222 3.9%
Chicken Egg Production 644 1.1% 599 1.0%
Broiler and Other Meat‐Type Chicken Production 799 1.3% 834 1.5%
Turkey Production 118 0.2% 116 0.2%
Sheep and Goat Farming 1,262 2.1% 1,365 2.4%

Horses and Equine 3,188 5.3% 4,297 7.5%
Oilseed and Grain Farming 13,776 23.1% 13,056 22.8%
Hay Farming 4,790 8.0% 5,917 10.3%
Tobacco Farming 1,021 1.7% 560 1.0%
Vegetable and Melon Farming 1,614 2.7% 1,769 3.1%
Fruit and Tree‐Nut Farming 1,974 3.3% 1,892 3.3%
Greenhouse, Nursery and Floriculture Production 2,876 4.8% 2,822 4.9%
Other Types 5,381 9.0% 5,773 10.1%
Total 59,728 100% 57,211 100%

It is interesting to note that despite a reported increase in seeded acreage between 2001 and 2006, the
number of grains and oilseeds farms declined. This is consistent with trends in agriculture generally, where the
number of operations is declining but the size of farms is increasing. In Ontario between 2001 and 2006, the
average farm size increased from 226 acres to 233 acres.6

6
Statistics Canada Census of Agriculture, 2006
3.6 Land Tenure
Over time, there has been a constant increase in the amount of rented land that is farmed in Ontario. While
this trend is particularly prevalent in the urbanizing area of the Golden Horseshoe it is also evident in the
predominantly rural areas of the province.

Figure 29 ‐ Farm Land Area by Tenure Ontario Census Years 1976 to 2006
14,000

Area Owned

Area Leased
12,000

10,000

Acres (Thousands)
8,000

6,000

4,000

2,000

0
1976 1981 1986 1991 1996 2001 2006

Area Owned 11,961,854 11,351,995 10,451,724 9,887,990 9,764,607 9,373,178 8,889,694

Area Leased 3,511,157 3,571,297 3,501,285 3,582,663 4,114,958 4,134,179 4,420,522

Source: Statistics Canada, Census of Agriculture, 1976 ‐ 2006

Grains and oilseeds are commodities which lend themselves to production on rented land. Access to
additional land at reasonable rates allows producers to expand their operations, adjust in response to market,
or get into farming without a large requirement
for capital up front. This is particularly true in
areas where the cost of land far exceeds its
productive value. If the supply of rental land is
stable and leases are long term and secure,
investments in maintaining and improving land
can be made with confidence. The flexibility to
expand operations can be beneficial.

The Ontario farm property tax rebate is an
incentive to bring land into production and is a
significant contributing factor in increasing the
amount of rental land that is farmed. Land under
production qualifies for a 75% rebate in property
tax. Therefore, many land owners that are not
farmers actively pursue rental arrangements with farmers so they can qualify for the property tax rebate.

PLANSCAPE INC. 60
3.7 Ontario’s Role Nationally and Internationally
3.7.1 National Production
The grains and oilseeds sector is a leading agricultural sector in Canada. As shown on Figure 30, the prairie
provinces dominate in all grain production with the exception of corn; and in all oilseeds, with the exception of
soybeans. In these two categories, Ontario generates the majority of returns. For winter wheat, Ontario
production rivals the prairies. Ontario dominates in white bean production and is a major producer of coloured
beans.

Figure 30 – Ontario Share of Canadian Grains and Oilseeds Crops by Farm Cash Receipts, 2007
2007

Ontario as
Crops
Ontario Canada Percentage of
National Total
Wheat 253,659 3,228,360 7.9%
Rye 5,346 33,362 16.0%
Oats 6,272 426,050 1.5%
Barley 8,474 678,025 1.2%
Canola 9,256 3,451,624 0.3%
Soybeans 797,909 1,038,903 76.8%
Grain Corn 651,816 1,038,573 62.8%
Beans 68,073 165,097 41.2%
Hay 53,094 257,506 20.6%
Total 1,853,899 10,317,500

Ontario’s percentage share of farm cash receipts by commodity is broken down on Figure 31 for the period
from 2001 to 2006. As shown on Figure 32, the pattern of production outlined previously, with Ontario
dominating in the production of certain commodities, continued in 2007 and 2008.

Figure 31 – Provincial Share of Canadian Field Crops Total Farm Cash Receipts by Commodity (Percentage),
2006
Province Total
Commodity Canada
Ontario Nfl PEI NS NB Que Man Sask Alb BC ($'000)
Wheat 10.3% 0.0% 0.1% 0.0% 0.0% 0.5% 12.9% 47.1% 28.9% 0.2% 100.0% 2,825,161
Oats 1.9% 0.0% 0.2% 0.0% 0.1% 5.0% 29.9% 53.1% 9.2% 0.7% 100.0% 332,765
Barley 1.5% 0.0% 1.0% 0.1% 0.3% 3.3% 8.7% 52.1% 32.5% 0.5% 100.0% 440,613
Rye 29.9% 0.0% 0.0% 0.0% 0.0% 0.0% 26.7% 28.7% 14.7% 0.0% 100.0% 15,913
Canola 0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 15.4% 44.6% 39.6% 0.2% 100.0% 2,503,038
Soybeans 80.4% 0.0% 0.2% 0.0% 0.0% 16.7% 2.7% 0.0% 0.0% 0.0% 100.0% 679,914
Corn 61.2% 0.0% 0.0% 0.2% 0.0% 37.2% 1.4% 0.0% 0.1% 0.0% 100.0% 753,676
Dry Beans 49.5% 0.0% 0.0% 0.0% 0.0% 5.4% 28.1% 0.0% 17.0% 0.0% 100.0% 153,268
Hay and Clover 21.0% 0.2% 0.1% 0.5% 1.4% 14.4% 6.1% 10.7% 37.3% 8.3% 100.0% 245,475
Total Crops 18.2% 0.0% 0.1% 0.1% 0.1% 6.1% 12.3% 36.3% 26.4% 0.4% 100.0% 7,949,823

Figure 32 – Area Seeded of Grains and Oilseeds Operations by Operation Type for Ontario and Canada, 2001
and 2006
Provincial Share of
Ontario Canada
Commodity National
2007 2008 % Change 2007 2008 % Change 2007 2008
Winter Wheat 595.0 1,185.0 99.2% 1,586.7 2,565.9 61.7% 37.50% 46.18%
Spring Wheat (Including Durum) 180.0 195.0 8.3% 20,029.9 22,533.6 12.5% 0.90% 0.87%
All Wheat 775.0 1,380.0 78.1% 21,616.6 25,099.5 16.1% 3.59% 5.50%
Oats 100.0 75.0 ‐25.0% 5,407.7 4,382.0 ‐19.0% 1.85% 1.71%
Barley 170.0 155.0 ‐8.8% 10,864.8 9,072.1 ‐16.5% 1.56% 1.71%
Fall Rye 50.0 55.0 10.0% 305.0 340.0 11.5% 16.39% 16.18%
Canola 35.0 55.0 57.1% 14,726.0 15,811.9 7.4% 0.24% 0.35%
Corn for Grain 3,095.0 2,765.0 ‐10.7% 3,439.0 2,975.1 ‐13.5% 90.00% 92.94%
Soybeans 3,340.0 3,315.0 ‐0.7% 2,915.9 2,993.3 2.7% 114.54% 110.75%
Mixed Grains 140.0 115.0 ‐17.9% 421.8 314.9 ‐25.3% 33.19% 36.52%
Dry White Beans 85.0 80.0 ‐5.9% 150.0 135.0 ‐10.0% 56.67% 59.26%
Dry Coloured Beans 75.0 55.0 ‐26.7% 229.1 227.4 ‐0.7% 32.74% 24.19%
Fodder Corn 300.0 265.0 ‐11.7% 609.1 605.6 ‐0.6% 49.25% 43.76%

3.7.2 Ontario Exports
On a global basis, Ontario exports grains and oilseeds to numerous countries. Figure 33 lists 2007 exports to
the top ten international destinations. As is apparent from this Figure, and from Figure 34, the largest export
destination is the United States. However over time, the value of exports to the United States has declined.
Exports to the other countries are more volatile but are generally increasing.

Figure 33 – Top Ten Export Countries for Ontario Grains and Oilseeds, 2003 ‐ 2007
Export Sales $ (CAD)
Country
2003 2004 2005 2006 2007
United States $200,887,451 $180,637,550 $200,066,807 $156,958,089 $136,445,076
Japan $64,753,509 $105,065,003 $94,505,173 $88,877,095 $101,955,551
United Kingdom $55,417,205 $40,994,123 $44,743,600 $40,234,493 $54,097,313
Malaysia $19,141,948 $32,543,191 $18,700,719 $46,567,647 $33,807,669
Iran $39,583,233 $43,832,674 $16,410,901 $439,011 $30,114,428
Belgium $13,295,025 $11,917,030 $25,608,133 $35,155,090 $27,300,271
Netherlands $18,611,713 $19,714,214 $6,406,356 $35,117,678 $20,625,463
Israel $605,624 $534,471 $783,602 $5,980,515 $17,004,536

Austria $357,748 $591,020 $0 $1,668 $16,837,007
Italy $14,008,555 $10,047,258 $12,440,264 $12,677,153 $15,862,837
PLANSCAPE INC. 62
Figure 34 – Top Five Export Countries for Ontario Grains and Oilseeds, 2003 ‐ 2007
$250
United States
Japan
United Kingdom
Malaysia
Iran
$200

Sales Millions $ (CAD)
$150

$100

$50

$0
Year
2003 2004 2005 2006 2007

Based on dollar value, the largest Ontario grains and oilseeds export is soybeans, followed by wheat and corn.
With respect to the breakdown of exports, as shown in Figure 35, the dominant destination for the various
commodities, with the exception of soybeans, is the United States. Japan is the leading importer of soybeans
followed by Malaysia, Belgium and Iran.

Figure 35 – Top Ten International Export Destinations for Each Commodity Group for Ontario, 2007
Soybean Oilseed (excl. Soybean) Wheat Corn Other Grains
Country Value CAD$ Country Value CAD$ Country Value CAD$ Country Value CAD$ Country Value CAD$
Japan 89,864,185 United States 1,626,228 United States 53,541,705 United States 41,892,969 United States 1,536,595
Malaysia 33,607,693 United Arab Emirates 236,214 Australia 55,233 Austria 16,836,736 Italy 383,147
Belgium 26,892,440 India 102,711 Dominican Republic 1,101 Iran 9,685,000 Brazil 74,545
Iran 20,429,428 Australia 42,906 Peru ‐‐ Morocco 2,347,263 Germany 71,524
Netherlands 18,813,461 Pakistan 41,014 Venezuela ‐‐ Japan 1,048,974 Japan 34,713
United States 17,878,860 Saudi Arabia 37,449 Colombia ‐‐ Israel 925,364 Bermuda 17,757
Israel 15,821,708 Taiwan 36,275 Mexico ‐‐ Ireland 436,165 Switzerland 17,269
United Kingdom 13,597,079 Trinidad and Tobago 35,664 Ecuador ‐‐ United Kingdom 253,767 Belgium 14,628
Hong Kong 10,009,586 Brazil 29,644 Mozambique ‐‐ Ukraine 208,232 Greece 13,124
Singapore 7,048,700 Japan 28,505 Denmark ‐‐ Belgium 66,064 Panama 11,931

Over time, soybean exports from Ontario have been growing dramatically. In 1995, total soybean exports
were 36,000 tonnes. In 2000, Japan alone imported 175,000 tonnes which was roughly 8% of the soybean
crop that year.7 In 2006, when Canada ranked seventh in the world in soybean production, over 40% of the 3.5
million tonnes of soybeans grown in Ontario were exported.8 Soybean exports will be a significant factor in the
favourable trade balances shown on Figure 36. Japan has the highest annual positive trade balance, followed
generally by the United Kingdom.

Figure 36 – Top Ten Highest Grains and Oilseeds Trade Balances with Ontario, 2003 – 2007
Country
Trade Balance $ (CAD)
2003 2004 2005 2006 2007
Japan $64,620,636 $104,988,566 $94,431,774 $88,801,378 $101,814,502
United Kingdom $55,360,200 $40,897,348 $44,677,200 $40,190,231 $54,033,810
Malaysia $19,105,756 $32,511,110 $18,666,699 $46,527,289 $33,760,202

Iran $39,410,024 $43,685,511 $16,257,835 $234,029 $29,862,165
Belgium $13,295,025 $11,915,712 $25,608,103 $35,155,089 $27,288,899
Netherlands $18,324,543 $19,618,704 $6,200,867 $34,873,533 $20,204,357
Israel $446,168 $372,217 $567,957 $5,854,597 $16,873,154
Austria $357,468 $591,011 ‐$79,678 $1,321 $16,571,273
Italy $13,946,221 $9,964,695 $12,393,333 $12,636,435 $15,840,541
Hong Kong $5,324,000 $2,658,355 $5,599,106 $7,059,698 $9,961,885

The lowest grains and oilseeds trade balances are shown on Figure 37. Not surprisingly, the largest annual
deficits are with the United States. The re‐import value is an interesting presence on the list, denoting that
some of the exported product is returning home.

Figure 37 – Ten Lowest Grains and Oilseeds Trade Balances with Ontario, 2003 ‐ 2007
Trade Balance $ (CAD)
Country
2003 2004 2005 2006 2007

Argentina ‐$36,877 ‐$288,285 ‐$180,926 ‐$661,055 ‐$520,378

Peru ‐$561,105 $8,694 $11,181,047 $1,478,244 ‐$913,904

Turkey ‐$500,193 ‐$250,902 ‐$46,676 ‐$957,357 ‐$948,634

Canada Re‐Imports ‐$149,051 ‐$281,361 ‐$2,337,942 ‐$680,237 ‐$1,111,321
Burma ‐$401,717 ‐$24,145 ‐$42,536 $0 ‐$1,165,799
Ethiopia ‐$787,877 ‐$1,467,472 ‐$2,351,686 ‐$690,476 ‐$1,286,150
China ‐$3,218,828 $5,890,341 ‐$1,762,474 ‐$829,158 ‐$4,289,199
India ‐$7,193,477 ‐$8,021,759 ‐$8,211,892 ‐$8,822,883 ‐$7,250,122
Chile ‐$12,009,242 ‐$5,660,483 ‐$10,821,677 ‐$3,568,382 ‐$12,653,233
United States ‐$294,026,719 ‐$283,904,726 ‐$125,471,012 ‐$131,930,019 ‐$217,607,398

Figure 38 lays out the exports of grains and oilseeds to the United States for all provinces and Figure 39 depicts
it graphically. From these figures it is apparent that Ontario’s component of trade with the United States is
consistent with its contribution to Canadian grains and oilseeds production, representing 8% in 2007.

7
Agriculture and Agri‐Food Canada, Cultivating Concepts, Vol 12, April 2001, p.36
8
Statistics Canada, “The Soybean, a Canadian Agricultural Success Story”, October, 2007
PLANSCAPE INC. 64
Figure 38 – Exports of Grains and Oilseeds to the United States from All Provinces, 2003 ‐ 2007
Province
2003 2004 2005 2006 2007

Saskatchewan 197,492,339 318,125,061 305,202,249 565,670,339 833,295,683
Alberta 77,746,084 156,888,451 148,774,052 241,793,397 371,639,910

Manitoba 310,414,318 275,699,855 221,926,050 203,011,453 356,414,430
Ontario 200,887,451 180,637,550 200,066,807 156,958,089 136,445,076
Quebec 27,201,027 38,612,775 27,884,613 15,331,538 28,735,949
British Columbia 7,677,686 10,327,288 3,887,803 7,301,669 15,120,087
New Brunswick 118,725 32,485 158,139 74,934 206,901
Nova Scotia 121,170 63,889 28,410 46,627 40,715
Prince Edward Island 0 197,602 367,072 133,417 19,182

Northwest Territories 0 0 5,353 0 0

Newfoundland and Labrador 0 8,979 0 0 0
Yukon Territory 0 0 0 0 0
Nunavut 0 0 0 0 0
Total (To U.S.A.) 821,658,800 980,593,935 908,300,548 1,190,321,463 1,741,917,933
Total (To Other Counties) 5,389,356,964 6,220,442,203 5,602,209,089 6,804,591,419 8,862,328,528

Figure 39 – Provincial Proportion of Exports to the United States, 2007
British Columbia
0.9%
Quebec Saskatchewan
1.6% 47.8%

Ontario
7.8%

Manitoba
20.5%

Alberta
21.3%

The breakdown of the relationship between Ontario and the United States by state, shown in Figures 40 and
41, confirms a strong relationship with the northern states. The nature of the relationship is demonstrated by
the breakdown of exports shown on Figure 42. Wheat dominates exports to the United States and the
numbers are particularly high in export to Ohio.

Figure 40 – Top Ten Export States (U.S.) for Ontario Grains and Oilseeds, 2003 ‐2007
State
2003 2004 2005 2006 2007

Ohio $57,720,462 $43,268,356 $47,709,725 $42,378,434 $27,873,915
Michigan $31,253,940 $21,104,263 $30,415,634 $19,296,688 $23,004,228

New York $42,242,502 $36,765,855 $23,144,979 $16,573,048 $17,474,684
Iowa $9,061,091 $7,776,236 $12,439,145 $10,735,299 $15,458,735

Pennsylvania $19,066,060 $21,681,630 $20,514,664 $21,351,173 $13,320,262
Minnesota $6,565,096 $5,561,016 $12,460,709 $3,052,259 $7,000,623
Texas $945,167 $1,230,977 $436,764 $2,761,286 $5,321,162

New Jersey $1,764,297 $2,830,224 $3,244,565 $2,099,433 $4,254,264
Illinois $2,101,086 $4,303,042 $2,235,811 $1,763,517 $4,238,500

Indiana $1,566,102 $1,343,881 $2,904,454 $5,839,246 $3,534,834

Figure 41 – Top Five U.S. States for Ontario Exports of Grains and Oilseeds, 2003 ‐ 2007
$70

$60

$50

Sales Millions $ (CAD)
$40

$30

$20

$10

$0
2003 2004 2005 2006 2007 Year

Ohio Michigan New York Iowa Pennsylvania

PLANSCAPE INC. 66
Figure 42 – Top Ten Export Destinations for Each Commodity Group from Ontario to the United States, 2007
Soybean Oilseed (excl. Soybean) Wheat Corn Other Grain
U.S. State Value CAD$ U.S. State Value CAD$ U.S. State Value CAD$ U.S. State Value CAD$ U.S. State Value CAD$
New York 4,088,119 Michigan 364,489 Ohio 25,144,623 Iowa 15,410,638 Maryland 347,274
Texas 3,945,343 California 241,014 Michigan 11,450,508 Michigan 9,037,511 Ohio 324,284
Washington 2,255,231 Pennsylvania 202,618 Pennsylvania 8,458,113 Minnesota 4,722,466 New York 267,838
Minnesota 1,814,591 North Dakota 189,209 New York 7,228,111 Indiana 3,174,678 Minnesota 265,426
Ohio 1,205,610 New York 160,685 Kansas 432,858 Illinois 2,923,753 North Dakota 135,991
Michigan 1,186,707 Illinois 91,415 Illinois 173,062 Vermont 1,981,811 Illinois 68,182
North Dakota 837,733 Connecticut 50,138 Nebraska 161,658 New York 1,472,923 Puerto Rico 29,087
Missouri 795,894 Minnesota 49,097 Alabama 146,377 Nebraska 1,320,792 Colorado 21,727
Pennsylvania 557,156 Ohio 44,987 Tenessee 132,156 Pennsylvania 1,061,918 Connecticut 20,930
Maryland 322,531 Florida 40,518 Oregon 82,377 Texas 133,486 Texas 18,293

A review of the history of wheat exports to the United States over the past few years confirms some trends
which have occurred since direct marketing was introduced in 2003. The Ontario wheat sector sells to three
markets; domestic, the United States and international. The domestic market is approximately 600,000 tonnes
annually. The split between the American and international markets is shown on Figure 43.

Figure 43 – Ontario’s Wheat Exports, 1995 – 2004

Wheat exports from Ontario are focused on soft winter and soft red winter wheat. Ohio, Michigan,
Pennsylvania and New York purchase wheat for milling. One mill in Toledo, which supplies “Oreo” cookie
production, imports a significant amount of Ontario wheat.9 Portions of the wheat that is exported is milled in
the northern states and then sold back to Ontario as flour.

This pattern of export / import is not surprising. Southern Ontario, where wheat production is centered, is in
close proximity to these northern states. Over time a “cookie cluster” has developed whereby Ontario wheat
moves back and forth across the American border in a highly complex cluster, focused on the production of
baked goods and cereals.
9
Alberta Food & Rural Development, Ontario’s Wheat Industry with Direct Marketing Economics and Competiveness, October, 2005.
3.7.3 Imports
Figures 44 and 45 summarize imports of grains and oilseeds to Ontario. The United States, as well as being the
biggest importer of Ontario product, is the biggest exporter back into the Ontario market. The second and
third largest exporters to Ontario are Chile and India, but the amount from these sources is significantly lower
than from the United States.

Figure 44 – Top Ten Grains and Oilseeds Import Countries to Ontario, 2003 ‐ 2007
Import Sales $ (CAD)
Country
2003 2004 2005 2006 2007
United States $494,914,170 $464,542,276 $325,537,819 $288,888,108 $354,052,474
Chile $12,009,242 $7,299,967 $10,907,114 $3,571,660 $12,653,233
India $7,412,374 $9,217,174 $8,271,767 $8,861,066 $7,375,603
China $3,293,172 $2,581,054 $5,154,467 $3,519,457 $4,448,239

Thailand $196,673 $189,243 $149,491 $347,044 $1,556,223
Ethiopia $840,518 $1,467,472 $2,351,686 $690,476 $1,286,150
Burma $401,717 $24,145 $42,536 $0 $1,165,799
Canada Re‐Imports $149,051 $281,361 $2,337,942 $680,237 $1,111,321
Turkey $500,193 $268,450 $291,339 $971,131 $1,106,053
Peru $590,175 $576,306 $541,407 $737,508 $913,904

Figure 45 – Top Three Grains and Oilseeds Import Counties to Ontario, 2003 ‐ 2007
$600
United States

Chile

India
$500

$400
Sales Millions & (CAD)

$300

$200

$100

$0

2003 2004 2005 2006 2007 Year

Figures 46 and 47 illustrate the complexity of the relationship between American and Ontario markets. Many
of the states that import Ontario product also export their own product to Ontario. Whereas Ohio is the
largest market for Ontario wheat, it is the fifth largest exporter of product back to Ontario.

PLANSCAPE INC. 68
Figure 46 – Top Ten Grains and Oilseed Import States (U.S.) to Ontario, 2003 ‐ 2007

Import Sales $ (CAD)
State
2003 2004 2005 2006 2007

Michigan $249,070,020 $184,810,221 $152,947,372 $117,857,136 $88,666,310
Illinois $30,303,982 $35,417,492 $33,367,473 $29,659,414 $50,617,649
Iowa $19,256,608 $41,833,624 $25,285,814 $26,465,711 $45,512,649

Missouri $130,429 $505,207 $8,562,295 $17,365,491 $38,911,594
Ohio $36,665,336 $82,526,002 $30,042,016 $14,365,128 $28,529,085

Minnesota $79,826,202 $43,163,269 $11,707,272 $11,039,547 $21,226,524
New York $18,447,403 $14,927,222 $14,204,023 $14,219,545 $15,850,141
Indiana $7,544,628 $14,753,241 $8,578,826 $9,788,850 $15,626,183

Wisconsin $15,855,051 $12,266,124 $2,222,211 $6,242,943 $12,571,054
Pennsylvania $372,145 $1,661,212 $3,409,843 $9,483,317 $9,485,064

Figure 47 – Top Five Grains and Oilseeds Import States (U.S.), 2003 ‐ 2007
$300

$250

Import Sales Millions $ (CAD)
$200
$150
$100

$50

$0
2003 2004 2005 2006 2007 Year
Michigan Illinois Iowa Missouri Ohio

The other component of the Ontario export market that is significant is edible beans. Canada is the 4th largest
producer of edible beans in the world with in excess of 85% of production exported to a variety of
destinations. Ontario produces more than 40% of this crop. Again, the principal destination of bean exports is
the United States followed by the United Kingdom.

Figure 48 – Canadian Bean Exports to Major Destinations – 6 Year Average, 1999/2000 – 2004/05

Dominican Republic
4%

Japan
4%
Italy
8%
United States
43%

United Kingdom
27%

Greece Angola
Algeria 2% 3%
2%
Portugal Spain
3% 4%

PLANSCAPE INC. 70
3.8 Conclusion
This statistical profile of the Ontario Grains and Oilseeds sector confirms its strength and diversity. It also
highlights the fluctuations the sector is subject to with the associated pressures these fluctuations create.
Despite this, grains and oilseeds producers have built a world class industry with linkages to all parts of the
globe.

CHAPTER 4
THE GRAINS AND OILSEEDS SECTOR’S
ROLE IN ONTARIO’S ECONOMY

4.1 Examining the Structure of the Ontario Grains and Oilseeds Sector
The previous chapter provided a profile of grains and oilseeds production in Ontario. This chapter examines
the economic value that grains and oilseeds production contributes to the Ontario economy.

The grains and oilseeds industry occupies a
fundamental position in the agricultural value
chain in Ontario. In addition to primary
production, most grains and oilseeds producers
produce other agricultural products that use
grains and oilseeds output as input ‘on‐the‐
farm’. As such, as noted previously, not all of
the grains and oilseeds production is actually
sold, some is consumed on‐farm in producing
other agricultural products. As a result,
monetary activity measures such as gross farm
receipts (GFR) and farm cash receipts (FCR) have
the potential to undervalue the importance of
the provincial grains and oilseeds industry. To
account for this, an alternative measure of the
sector’s contribution would be a monetary estimate of total value of grains and oilseeds output using value of
production, as discussed in Chapter 3. In this study, both farm cash receipts and value of production are
utilized. Farm cash receipts are used to enable comparison with other agricultural impact studies. Value of
production is used to provide the most accurate perspective of the true economic impact that the grains and
oilseeds sector has on the Ontario economy.

Overall, the Ontario grains and oilseeds sector generated approximately $3.1 billion in productive value1 and
$1.9 billion in farm cash receipts2 in 2007 (See Figure 49). This is significant economic activity and can be
expected to have a major impact on other components of the Ontario economy. Calculating this impact
provides the true value of the sector. This chapter provides this analysis.

Figure 49 ‐ Estimated Farm Value and Farm Cash Receipts for Specified Grains and Oilseeds Crops, 2007
2007
OMAFRA Farm Statistics Canada Farm
Crops Value $ Cash Receipts $
Wheat 370,800,000 253,659,000
Rye 6,600,000 5,346,000
Oats 16,800,000 6,272,000
Barley 41,900,000 8,474,000

Canola 12,900,000 9,256,000
Soybeans 740,900,000 797,909,000
Grain Corn 1,127,500,000 641,816,000
Fodder Corn 109,100,000 x
Mixed Grain 25,700,000 x
Beans 69,900,000 68,073,000
Hay 580,200,000 53,094,000
Total 3,102,300,000 1,853,899,000

1
OMAFRA Estimated Farm Value of Field Crops
2
Ibid.
4.2 Economic Impact Methodology
In estimating the provincial economic impact of the Ontario grains and oilseeds sector, the following
methodology was employed:
• Develop a survey instrument (i.e., questionnaire) to translate operation‐level data on expenses and
revenues into the NAICs commodities used in the Provincial Input‐Output (IO) Accounts;3
• Draw a sampling of grains and oilseeds operators in Ontario, across all commodity groups;
• Administer the IO questionnaire to the sample of provincial grains and oilseeds operators;
• Estimate provincial input and output profiles for the grains and oilseeds industry;
• Produce “augmented Input‐Output (IO) tables” for the province of Ontario;4
• Develop and test a provincial economic impact model capable of estimating the direct, indirect and
induced economic impacts of grains and oilseeds operations in the province of Ontario; and
• Run the provincial impact model using the augmented Input‐Output tables.

4.3 The Development of a Provincial Economic Impact Model
The first step in measuring the economic
impacts from the activities of a given industry is
to determine the input structure. An industry’s
input structure shows all of the inputs required
to produce its output, as well as the relationship
between output levels and the rate at which
various inputs are required. Due to the fact that
the grains and oilseeds sector does not have an
input structure in the form of existing Input‐
Output tables, these must be derived from an
operator questionnaire. Specifically, the
operator survey is a random sample of grains
and oilseeds operators across commodity
groups, across size classes, and across the
regions of Ontario.

In concert with the Grains and Oilseeds Safety Net Committee and member organizations, the study team
implemented questionnaires and collected 21 responses (shown in Figure 50). Using the completed
questionnaires along with tax‐filer data for grains and oilseeds operations in Ontario in 2005 (the most recent
year for which this data is currently available), an estimate of the magnitude and nature of total input
expenditures and revenue sources were calculated for the Ontario grains and oilseeds industry.5 These input
and output “structures” describe the manner in which the Provincial grains and oilseeds industry interacts with
the broader Provincial economy through the purchase of requisite inputs and the sale of output.

3
NAICS is an acronym for “North American Industry Classification System”. All firms in Canada are allocated, by virtue of their principal product to a
NAICs industry category, and their inputs and outputs are likewise allocated to NAICs commodity categories.
4
“Augmented” refers to the fact that these tables will detail economic interactions between the G&O industry and the rest of the provincial economy.
As the tables exist currently, all agricultural production is subsumed under a NAICs industry called “Crops and Animal Production”.
5
Statistics Canada, 2007. “Statistics on Revenues and Expenses of Farms, 2005”. Catalogue No. 21‐208‐XIE.
PLANSCAPE INC. 74
Figure 50 ‐ Estimated Farm Value and Farm Cash Receipts for Specified Grains and Oilseeds Crops, 2007
Number of
Operator
Commodity Group Contacts Returns %
Canola 7 0 0.0%
Coloured Bean 20 3 1.5%
Corn 17 4 23.4%
Seed Corn 9 3 33.3%
Soybeans 18 3 16.7%

Wheat 12 4 33.3%

White Bean 9 4 44.4%
Total 92 21 22.8%

Following the creation of input and output structures, the provincial aggregate category called “Crop and
Animal Production” was disentangled so that the contribution of grains and oilseeds was clearly differentiated
on its own. The end result was an impact model capable of assessing the direct, indirect and induced effects
(in terms of labour income and industry output) of the activities of the grains and oilseeds industry and its
components.

4.4 Measuring the Impact of the Grains and Oilseeds Industry in the Province of Ontario
The total economic impact of any industry is defined as the sum of its direct, indirect and induced economic
impacts in the host economy. Direct impacts are those that stem from the direct input requirements of the
industry in question. Indirect inputs are additional rounds of spending generated as input providers purchase
inputs to produce their outputs (e.g. the producer of seedlings purchasing electricity). For a hypothetical
representation of these rounds of spending in a regional economy see Figure 51.

Induced impacts refer to further rounds of spending that
stem from income earned by workers in various
industries in the economy. For example, a new
employee hired by the seed wholesaler as a result of
rising demand for whole grain foods in Ontario uses part
of her/his net income to purchase food products, a
variety of goods and services, a new Ford truck, and a
new home. These purchases made by the employee of
the seed wholesaler in‐turn stimulate the economy yet
again (i.e., the food stuffs must be produced, the Ford
truck must be manufactured (in Oakville, Ontario), and
the home purchase represents a further stimulus to the
housing industry in Ontario).

The regional economic impact model developed for this project is designed to compute the total, direct,
indirect and induced economic impacts in Ontario associated with the operations of the provincial grains and
oilseeds industry.
Figure 51 ‐ Schematic Representation of a Hypothetical (and truncated) Pattern of Linkages Emanating from an Agricultural Operation

Agricultural
Operation
Fertilizers, Heat & Pest Control Transportation Financial & Labour Other

Pesticides & Other Electricity Services Services Legal Services Inputs
Chemical Products
Pharmaceuticals Financial & Legal Transportation Heat & Labour Other

Services Services Electricity Inputs
Repairs & Vehicles Fuel Tires Insurance Tolls & Labour Other

Maintenance Licensing Inputs
Labour Financial and Other Inputs

Legal Services
PLANSCAPE INC. 76

4.5 The Results
Figure 49 presents two estimates of grains and oilseeds activity in Ontario in 2006. The first is based on
the value of grains and oilseeds production in 2007, and the second is measured using farm cash
receipts. In what follows, the total economic impact of these estimated grains and oilseeds activity
levels on the provincial economy will be estimated.
4.5.1 Total Output Multipliers
Figure 52 presents Total Output Multipliers for all industries (i.e., Small Level NAICS industry groups) in
Ontario including the grains and oilseeds sector as computed by our model. Total Output Multipliers
(TOMs) measure the stimulatory effect of each industry in the economy (inclusive of direct, indirect and
induced effects) on all industries in the economy. Generally speaking, the larger the multiplier for a
given industry, the more connected that industry is to other industries in the economy, and hence the
greater is its stimulatory effect if shocked. The TOMs are a direct reflection of the input and output
structures discussed above. Figure 52 shows that all industries in Ontario, with one exception, possess
TOMs which are in excess of 2.0. This means that for each of these industries, a one dollar increase in
the demand for their outputs will translate into more than two dollars in output response across all
linked industries in the economy. The grains
and oilseeds sector, based on the estimated
input and output structures discussed earlier,
exhibits a TOM of 2.74. It follows then that
each dollar of output from the provincial grains
and oilseeds industry stimulates $2.74 in
output from all linked industries in the
economy.

The Ontario grains and oilseeds industry ranks
sixth out of 26 industries in terms of
stimulatory potential (i.e., the size of its TOM).
TOMs can be used to rank industries within an
economy in terms of their potential to
stimulate spin‐off economic activity. Those
industries with the largest multipliers are,
theoretically, the ones which stand to generate
the largest economy‐wide impact, and hence
the largest social and economic benefit. By
extension, those industries with the largest
multipliers are those most worthy of
protection, nurturing and study. While there
are certainly limits to the extent that this
argument can be followed, the fact remains
that the Ontario grains and oilseeds industry, by virtue of its ranking in the upper quartile in terms of
multiplier size, would qualify as a “key industry”, one which is certainly worthy of protection, nurturing
and study.

Figure 52 ‐ Impact Multipliers by Industry in Ontario, 2004 Structure
Number Industry Groups
1 Crop a nd Ani ma l Producti on (l es s G & O SVY) 2.47
2 Onta ri o Gra i ns a nd Oi l s eeds SVY 2.74
3 Fores try a nd Loggi ng 2.72
4 Fi s hi ng, Hunti ng a nd Tra ppi ng 2.61
5 Support Acti vi ti es for Agri cul ture a nd Fores try 2.68
6 Mi ni ng a nd Oi l a nd Ga s Extra cti on 2.16
7 Uti l i ti es 1.91
8 Cons tructi on 2.53
9 Ma nufa cturi ng 2.46
10 Whol es a l e Tra de 2.61

11 Reta i l Tra de 2.57

12 Tra ns porta ti on a nd Wa rehous i ng 2.65

13 Informa ti on a nd Cul tura l Indus tri es 2.46

14 Fi na nce, Ins ura nce, Rea l Es ta te a nd Renta l a nd Lea s i ng 2.04
15 Profes s i ona l , Sci enti fi c a nd Techni ca l Servi ces 2.68
16 Admi ni s tra ti ve a nd Support, Wa s te Ma na gement a nd Remedi a ti on Servi ces 2.64
17 Educa ti ona l Servi ces 2.33
18 Hea l th Ca re a nd Soci a l As s i s ta nce 2.06
19 Arts , Enterta i nment a nd Recrea ti on 2.80
20 Accomoda ti on a nd Food Servi ces 2.66
21 Other Servi ces (Except Publ i c Admi ni s tra ti on) 2.61
22 Opera ti ng, Offi ce, Ca feteri a a nd La bora tory Suppl i es 2.62
23 Tra vel , Enterta i nment, Adverti s i ng a nd Promoti on 3.07
24 Tra ns pora ti on Ma rgi ns 3.08
25 Non‐Profi t Ins ti tuti ons Servi ng Hous ehol ds 2.88
26 Government Sector 2.79

PLANSCAPE INC. 78

4.5.2 Total Economic Impacts
Figure 53 presents total output (and GDP) impacts (including all direct, indirect and induced impacts),
across all industries in the economy associated with the provincial grains and oilseeds industry, using the
two activity measures discussed above. Figure 54 presents the information in Figure 53 graphically for
the farm value – based impacts. Figure 53 shows that the Ontario grains and oilseeds industry, is
producing more than $3.1 billion worth of output in 2007 (measured in terms of farm value), which
generated a total impact of nearly $10 billion (including more than $1.4 billion in labour income, and
$3.5 billion in value‐added) across all industries in Ontario.

Figure 53 also shows that in comparison, farm cash receipts of nearly $1.9 billion (i.e., that portion of all
grains and oilseeds production which is actually sold in the market) generated a total provincial impact
of nearly $6 billion (including nearly $840 million in labour income and $2.1 billion in value‐added).

Those industries in Ontario which exhibit the largest total impact as a result of the operations of the
grains and oilseeds industry (see Figure 53 & 54) include:
• Ontario Grains and Oilseeds ($3.1 billion);
• Households (i.e. labour income earned)6;
• Finance, Insurance, Real Estate and Rental and Leasing ($1.4 billion);
• Manufacturing ($1.4 billion); and
• Crop and Animal Production less grains and oilseeds survey.
The impact on the grains and oilseeds sector itself using the 2007 grains and oilseeds farm value of
$3.102 billion is $3.136 billion.7 This total output response includes the 2007 farm value as well as all
direct input requirements that stem from one operation to another within the grains and oilseeds
industry itself (i.e., intra‐sectoral linkages), as well as all indirect and induced effects in the economy
which feed back to the Ontario grains and oilseeds industry.8 This result suggests that the grains and
oilseeds industry does purchase inputs from itself in producing output. Figure 53 also shows that the
sum total of all direct, indirect and induced impacts stemming from grains and oilseeds operations in
Ontario generate more than $1.4 billion annually in labour income in the province.

The Finance, Insurance and Real Estate (FIRE) industry accounts for expense items such as bank charges,
insurance premiums, real estate commissions, financing charges, non‐residential rent etc. Survey
results, as well as the tax‐filer data discussed earlier, indicate that grains and oilseeds operators in
Ontario are significant users of the services of this industry (e.g., land rental, interest on debt, insurance
products, etc.). It is not surprising then that grains and oilseeds operations stimulate output from this
industry directly. The fact that all industries of the economy are strongly linked to this industry explains
the large indirect and induced impacts experienced by this industry (FIRE) in Ontario as a result of the
operations of the grains and oilseeds sector.

6
Labour income is a measure of the economic output of the “household sector” and is part of the output of the regional economic impact
th
model. Indeed, the model treats the household sector as being the 27 industrial sector in the economy. Households are reasonably viewed as
an industry which produces labour (its output) and buys consumer goods and services (its outputs).
7
It is important to note that this impact on the grains and oilseeds industry itself includes the initial shock value of $3.102 billion. In other
words, to produce this $3.102 billion in grains and oilseeds output, the grains and oilseeds industry purchases an additional $34 million worth of
grains and oilseeds output from itself as input.
8
A feedback effect occurs when direct input requirements of the grains and oilseeds industry cause production in other industries which use
the output of the grains and oilseeds industry as input. So, by satisfying demand for its output, the grains and oilseeds industry also creates
additional demand for its output through these feedback effects.
The Manufacturing sector is an aggregate of hundreds of types of manufacturing activities taking place
in Ontario (e.g., from food processing, to petroleum refining, to the production of fertilizers and hybrid
seed, etc.). Figure 56 shows that the total impact of grains and oilseeds production to manufacturing is
comprised of substantial direct, indirect and induced impacts. The direct impacts represent the fact that
the grains and oilseeds industry makes heavy use of manufactured products in the production of its
output. Most notably, all operators indicated a strong backward linkage to the commodity group
“Chemicals, Pharmaceuticals and Chemical Products” (commodity group 27 in the input mix) for the
provision of fertilizers and pesticides.
As well, operators noted a substantial
requirement for “Petroleum and Coal
Products” for fuel. The fact that the
manufacturing sector is a chief input
supplier to all sectors of the economy
(including the household sector)
explains the large indirect and induced
impacts assigned to the manufacturing
sector in response to grains and
oilseeds operations in Ontario.9

Figure 53 confirms that, based on value
of production, the provincial grains and
oilseeds industry generates in excess of
$3.5 billion in gross domestic product
(GDP) annually in Ontario.10 The GDP
impact reflects the net contribution of
the grains and oilseeds industry to the
provincial economy on an annual basis
(assuming that 2007 output levels are
maintained). To illustrate the difference
between gross output impacts and GDP
impacts, consider the fact that in total
output calculations (such as those used
here) the value of inputs going into a
product is also counted in the sale price of that product. In this case, the total output value is $9.9
billion. The GDP figure reported in Figure 53 measures only the value‐added by producers in satisfying
the direct, indirect and induced requirements associated with the operation of the grains and oilseeds
industry in Ontario. In terms of GDP impact, the Ontario grains and oilseeds industry adds in excess of
$3.5 billion in new wealth to the Ontario economy annually.

The large indirect effect on manufacturing suggests that as the grains and oilseeds industry draws direct inputs from its suppliers, the
9
suppliers too draw heavily from the manufacturing sector. The large induced effect suggests that wages paid to workers that are due to the
direct and indirect effects of the Ontario grains and oilseeds industry stimulate further demand for the output the manufacturing sector to
satisfy consumer demand.
10
It is important to note that the GDP impact is not to be added to the output impact discussed earlier. Indeed, the total output impact includes
the GDP impact.
PLANSCAPE INC. 80

Figure 53 ‐ Total Provincial Economic Impact of the Grains and Oilseeds Industry Using Two Estimates of Industry Activity Levels
Total Output Impact GDP Impact Total Output Impact GDP Impact
Number Industry Groups Using 2007 FCR Values Using 2007 FCR Values Using 2007 G&O Farm Values Using 2007 G&O Farm Values
1 Crop a nd Ani ma l Producti on (l es s G & O SVY) 330,303,294.40 106,669,066.55 552,726,934.01 178,499,176.68
2 Ontario Grains and Oilseeds SVY 1,874,056,693.81 605,213,092.25 3,136,031,726.22 1,012,758,826.71
3 Fores try a nd Loggi ng 6,986,036.60 2,884,115.28 11,690,378.68 4,826,255.82
4 Fi s hi ng, Hunti ng a nd Tra ppi ng 98,658.51 55,358.39 165,094.38 92,636.29
5 Support Acti vi ti es for Agri cul ture a nd Fores try 14,240,230.82 7,913,752.84 23,829,490.21 13,242,811.74
6 Mi ni ng a nd Oi l a nd Ga s Extra cti on 3,039,898.17 1,842,120.44 5,086,941.67 3,082,589.85
7 Uti l i ti es 83,867,948.17 55,568,294.57 140,343,964.59 92,987,546.92
8 Cons tructi on 77,182,854.40 37,011,925.95 129,157,181.27 61,935,465.68
9 Ma nufa cturi ng 817,616,729.15 238,502,182.06 1,368,193,401.49 399,107,674.91
10 Whol es a l e Tra de 108,582,599.19 64,292,258.78 181,701,267.14 107,586,159.99
11 Reta i l Tra de 120,394,423.58 78,097,941.33 201,467,081.15 130,688,480.54
12 Tra ns porta ti on a nd Wa rehous i ng 77,660,647.98 38,142,636.51 129,956,717.30 63,827,587.82
13 Informa ti on a nd Cul tura l Indus tri es 91,543,973.78 50,419,315.35 153,188,965.45 84,371,285.61
14 Fi na nce, Ins ura nce, Rea l Es ta te a nd Renta l a nd Lea s i ng 817,040,343.69 555,509,006.47 1,367,228,882.60 929,584,400.65
15 Profes s i ona l , Sci enti fi c a nd Techni ca l Servi ces 119,954,618.13 74,639,557.95 200,731,114.16 124,901,249.01
16 Admi ni s tra ti ve a nd Support, Wa s te Ma na gement a nd Remedi a ti on Servi ces 57,234,251.29 38,734,884.99 95,775,345.78 64,818,651.77
17 Educa ti ona l Servi ces 3,271,795.54 2,511,988.72 5,474,996.92 4,203,542.17
18 Hea l th Ca re a nd Soci a l As s i s ta nce 27,407,806.99 21,148,284.75 45,864,008.58 35,389,373.30
19 Arts , Enterta i nment a nd Recrea ti on 27,196,751.23 14,119,261.90 45,510,829.53 23,627,061.77
20 Accomoda ti on a nd Food Servi ces 51,631,484.02 26,630,167.20 86,399,719.11 44,562,712.27
21 Other Servi ces (Except Publ i c Admi ni s tra ti on) 48,947,021.06 31,629,632.48 81,907,559.93 52,928,778.13
22 Opera ti ng, Offi ce, Ca feteri a a nd La bora tory Suppl i es 163,022,104.45 0.00 272,799,906.92 0.00
23 Tra vel , Enterta i nment, Adverti s i ng a nd Promoti on 64,814,053.22 0.00 108,459,326.70 0.00
24 Tra ns pora ti on Ma rgi ns 18,957,539.74 0.00 31,723,397.84 0.00
25 Non‐Profi t Ins ti tuti ons Servi ng Hous ehol ds 28,840,534.02 20,578,941.49 48,261,522.70 34,436,638.78
26 Government Sector 50,375,497.44 29,698,278.65 84,297,961.06 49,696,865.82
27 La bour Income Ea rned 839,850,550.45 1,405,399,303.13
Total Impact 5,924,118,339.82 2,101,812,064.92 9,913,373,018.51 3,517,155,772.23

Figure 54 ‐ Industrial Distribution of the Total Provincial Output Impacts of Grains and Oilseeds Production (Farm Value Scenario)

PLANSCAPE INC. 82
4.5.3 Direct, Indirect and Induced Impacts
Figures 55 and 56 present detailed information on the composition (in terms of direct, indirect and
induced impacts) of the total economy‐wide (provincial) economic impact associated with the grains and
oilseeds industry using farm cash receipts and value of production.

Figure 55 provides an estimate of the direct, indirect and induced impacts using farm cash receipts.
Using this conservative value, which under represents the industry’s output; the total provincial
economic impact is estimated at $5.9 billion.

Figure 56 provides an estimate of the direct, indirect and induced impacts using the value of farm
production. Using this value, the total provincial economic impact is estimated at $9.9 billion.

Figure 57 presents the information in Figure 56 graphically in percentage terms and confirms that based
on farm value based estimates, the grains and oilseeds industry in Ontario stimulates production of
nearly $10 billion (through direct, indirect and induced impacts) in all industrial sectors of the economy.

Figure 57 reveals considerable variation across industries in Ontario in terms of the composition of the
total impact assigned to each in response to the operations of the grains and oilseeds industry. For
example, over 80% of the total impact felt by “Crop and Animal Production less G & O Survey” is direct,
while less than 3 percent is induced. In contrast, nearly 90 percent of the total impact experienced by
“Educational Services” is induced, and less than 1 percent is direct.

The industries included in Figure 57
have been sorted based on the
magnitude of their direct impact. As a
result, it is apparent how the total
impacts change from being largely
direct on the left hand side of the
graphic, to being largely indirect and
induced in industries on the right‐hand
side of the graphic. Following this
progression from left to right, it is
apparent that the total impact
associated with the grains and oilseeds
industry in Ontario shifts from being
largely direct, to being more indirect
and induced. This differentiates those
sectors which are directly linked to the
grains and oilseeds industry (through
the provision of inputs) from those which are more indirectly connected to it. Figure 57 clearly shows
that the grains and oilseeds industry in Ontario stimulates a complex chain of economic transactions
between all sectors in the provincial economy.


Figure 55 – Direct, Indirect and Induced Impacts of Provincial Grains and Oilseeds Production (Based on Farm Cash Receipts – 2007)
Total Output Impact Using
Number Industry Groups 2007 G&O Farm Values Direct Impact Indirect Impact Induced Impact
1 Crop a nd Ani ma l Producti on l es s G&O SVY 330,303,294.40 271,909,075.27 49,727,647.29 8,666,571.84
2 Ontario G&O SVY 1,874,056,693.81 13,953,722.28 1,859,488,883.97 614,087.56
3 Fores try a nd Logging 6,986,036.60 1,978,074.53 3,387,508.76 1,620,453.30
4 Fis hi ng, Hunti ng, a nd Tra ppi ng 98,658.51 ‐ 22,554.69 76,103.83
5 Support Acti vi ti es For Agri cul ture a nd Fores try 14,240,230.82 11,946,043.46 1,897,085.98 397,101.38
6 Mi ni ng a nd Oi l a nd Ga s Extra cti on 3,039,898.17 32,071.15 2,187,232.17 820,594.85
7 Utl iti es 83,867,948.17 39,920,884.49 18,501,436.03 25,445,627.64
8 Cons truction 77,182,854.40 36,951,144.26 27,783,040.44 12,448,669.70
9 Ma nufacturi ng 817,616,729.15 294,490,203.04 324,187,660.51 1,989,386,865.59
10 Whol es a l e Tra de 108,582,599.19 7,445,016.49 57,229,310.86 43,908,271.83
11 Reta i l Tra de 120,394,423.58 4,270,432.87 16,438,424.62 99,685,566.09
12 Tra ns porta ti on a nd Wa rehous i ng 77,660,647.98 1,291,060.19 34,847,254.45 41,522,333.34
13 Informa ti on a nd Cul tura l Indus tri es 91,543,973.78 6,543,119.58 40,789,954.16 44,210,900.03
14 Fi na nce, Ins ura nce, Rea l Es ta te and Renta l and Lea s i ng 817,040,343.69 390,535,646.49 119,609,661.21 306,895,025.99
15 Profes s i onal , Sci enti fi c a nd Technica l Servi ces 119,954,618.13 30,230,415.05 54,830,578.07 34,893,625.01
16 Admi ni s tra tive a nd Support, Wa s te Ma na gement a nd Remedi a ti on Servi ces 57,234,251.29 11,520,857.49 24,048,271.06 21,665,122.74
17 Educa ti ona l Servi ces 3,271,795.54 19,798.91 338,456.93 2,913,539.70
18 Hea l th Care a nd Socia l As s is ta nce 27,407,806.99 3,796.45 2,353,443.42 25,050,567.13
19 Arts , Enterta i nment a nd Recrea ti on 27,196,751.23 7,889,915.72 5,876,096.32 13,430,739.19
21 Other Servi ces (Except Publ i c Admi ni s tra ti on) 48,947,021.06 16,704,091.29 9,993,090.58 22,249,839.19
22 Opera ting, Offi ce, Cafeteria a nd La bora tory Suppl i es 163,022,104.45 106,893,144.10 37,476,341.69 18,652,618.65
23 Tra vel, Enterta i nment, Adverti s i ng a nd Promotion 64,814,053.22 ‐ 37,642,728.74 27,171,324.48
24 Trans porta tion Ma rgi ns 18,957,539.74 ‐ 12,577,808.00 6,379,731.73
25 Non‐Profi t Ins tituti ons Servi ng Hous ehol ds 28,840,534.02 1,261,718.26 1,325,258.23 26,253,557.52
Total Industry Output Impact 5,084,267,789.37 1,274,275,388.91 2,760,466,653.38 1,049,525,747.08
% 100% 25% 54% 21%
Labour Income Earned 839,850,550.45
Total Impact (Including Labour Income) 5,924,118,339.82

PLANSCAPE INC. 84

Figure 56 – Direct, Indirect and Induced Impacts of Provincial Grains and Oilseeds Production (Based on Production Value – 2007)
Total Output Impact
Number Industry Groups Using 2007 G&O Farm Values Direct Impact Indirect Impact Induced Impact
1 Ontario Gra ins and Oi ls eeds SVY 53,136,031,726.22 23,350,049.07 31,116,540,067.86 1,027,609.29
2 Manufacturing 1,368,193,401.49 492,797,588.71 542,493,080.37 332,902,732.41
3 Fi na nce, Ins ura nce, Rea l Es tate a nd Renta l and Leas ing 1,367,228,882.60 653,519,294.81 200,153,865.97 513,555,721.82
4 Crop a nd Ani mal Production l es s G&O SVY 552,726,934.01 455,010,507.16 83,213,853.72 14,502,573.12
5 Opera ti ng, Office, Cafeteri a a nd La bora tory Suppl ies 272,799,906.92 178,874,146.30 62,712,615.32 31,213,145.29
6 Reta il Tra de 201,467,081.15 7,146,108.76 27,507,930.42 166,813,041.97
7 Profes s ional , Sci enti fi c a nd Techni cal Services 200,731,114.16 50,587,338.68 91,753,057.93 58,390,717.55
8 Whol es a le Tra de 181,701,267.14 12,458,432.02 95,767,078.51 73,475,756.61
9 Informa ti on and Cul tural Indus tri es 153,188,965.45 10,949,204.83 68,257,588.36 73,982,172.26
10 Utli ties 140,343,964.59 66,803,294.01 30,960,157.49 42,580,513.09
11 Trans porta ti on and Wa rehous ing 129,956,717.30 2,160,449.96 58,313,121.42 69,483,145.92
12 Cons tructi on 129,157,181.27 61,833,754.07 46,491,921.27 20,831,505.93
13 Tra vel , Entertai nment, Adverti s i ng a nd Promoti on 108,459,326.70 0.00 62,991,046.10 45,468,280.60
14 Admi ni s tra tive a nd Support, Was te Ma nagement and Remedia tion Services 95,775,345.78 19,278,912.27 40,242,187.58 36,254,245.92
17 Other Servi ces (Except Publi c Admi nis tra ti on) 81,907,559.93 27,952,494.94 16,722,359.16 37,232,705.83
18 Non‐Profit Ins ti tutions Servi ng Hous ehol ds 48,261,522.70 2,111,349.41 2,217,676.70 43,932,496.60
19 Hea l th Care a nd Soci a l As s is ta nce 45,864,008.58 6,352.94 3,938,233.69 41,919,421.94
20 Arts , Enterta inment a nd Recrea tion 45,510,829.53 13,202,922.89 9,833,013.34 22,474,893.29
21 Tra ns porta tion Margi ns 31,723,397.84 0.00 21,047,604.95 10,675,792.89
22 Support Acti vi ti es For Agriculture a nd Fores try 23,829,490.21 19,990,415.13 3,174,568.76 664,506.32
23 Fores try a nd Loggi ng 11,690,378.68 3,310,094.36 5,668,630.51 2,711,653.81
24 Educa ti ona l Servi ces 5,474,996.92 33,131.34 566,371.17 4,875,494.41
25 Mi ni ng a nd Oil a nd Ga s Extra cti on 5,086,941.67 53,667.60 3,660,097.11 1,373,176.96
26 Fis hi ng, Hunting, and Tra ppi ng 165,094.38 0.00 37,742.84 127,351.54
Total Industry Output Impact 8,507,973,715.38 2,132,362,409.72 4,619,343,178.23 1,756,268,127.43
% 100% 25% 54% 21%
Labour Income Earned 1,405,399,303.13
Total Impact (Including Labour Income) 9,913,373,019.51


Figure 57 ‐ Direct, Indirect and Induced Impacts by Industry as a Percentage of the Total Province‐wide Output Impact
PLANSCAPE INC. 86

4.6 Conclusion
The economic impact of grains and oilseeds on the Ontario economy has been calculated using two values;
farm value based on production which may over represent economic impact, and farm cash receipts which
may under represent it. Using farm production value, the annual economic impact of the grains and oilseeds
sector is estimated at $9.9 billion; using farm
cash receipts it is estimated at $5.9 billion. Using
either amount it is apparent that this sector is a
vital component of the Ontario economy.

The analysis conducted also confirms that the
total output multiplier generated by the sector of
2.74 is relatively propulsive. Each dollar of
output from the Ontario grains and oilseeds
sector stimulates $2.74 of output from all linked
industries in the economy.

CHAPTER 5
GRAINS AND OILSEEDS’
ROLE IN THE COMMUNITY

5.1 Grains and Oilseeds and the National Economy
Grains and oilseeds are a significant part of the Canadian rural economy. In 2007, farm cash receipts generated
by the Canadian grains and oilseeds sector accounted for more than $10.9 billion or 30% of total Canadian
farm cash receipts. Farm cash receipts from the Ontario sector accounted for $1.9 billion or 17% of the
Canadian total.

Figure 58 – Farm Market Receipts by Commodity, 1990 and 2007

5.2 Grains and Oilseeds and the Provincial Economy
Ontario is a significant contributor to the national total value of grains and oilseeds production. In 2007,
Ontario generated $1.9 billion in grains and oilseeds receipts1, more than 17% of the Canadian total. 2 As shown
in Figures 59 and 60, even based on gross farm receipts, which under represent the industry, grains and
oilseeds is a very important sector of both Canadian and Ontario agriculture.

Figure 59 ‐ Grains and Oilseeds Farms as a Percentage of Total Farms – By Region

1
Includes all wheat oats ,barley, flaxseed, canola, soybeans, corn, dry beans, dry peas, forage and grass seed, hay and clover
2
Statistics Canada, Farm Cash Receipts, Catalogue No. 21 November, 2008
Figure 60 – Grains and Oilseeds Farm Production as a Percentage of Total Farm Gate Receipts – By Region

As shown on Figure 61, the farm profile in Ontario is much more evenly split between the various commodity
groups than in other provinces. However, it must be remembered that this distribution is done using a
classification system based on 50%+ of gross farm receipts generated. It does not reflect total gross farm
receipts by sector. What this figure does confirm is the highly integrated nature of the agricultural economy in
Ontario and the diversification that exists. It is the one province where no one commodity group dominates.

Figure 61 – Regional Farm Market Receipts by Commodity Share, 2007.

PLANSCAPE INC. 90
5.3 Grains and Oilseeds and the Rural Economy
In addition to its direct contribution to national and provincial economies, the grains and oilseeds sector also
supports the rural economy in many less tangible ways. As a significant part of the agricultural community,
grains and oilseeds farmers buy goods and services in rural Ontario. Grain elevators, seed suppliers, and
equipment dealers are only a small sample of the types of businesses that rely on agriculture for a living and
which are usually rurally based. Agriculture buys services from local businesses thereby stimulating the rural
economy and supporting employment.

Rural Ontario is
currently grappling with
the negative impacts of
a declining
manufacturing base and
an aging population.
Therefore, the
economic activity
generated by the
agricultural community
and agriculturally
related businesses is
increasingly important
both as an existing
support for the rural
economy and as an
opportunity for
economic development.
To compete in the
economy and to
maintain its population
base, rural Ontario must focus on its strengths, one of which is productive land and capable farmers.

As indicated earlier, grains and oilseeds are the backbone of agriculture and provide inputs which support
other forms of production. The difference between the value of farm cash receipts which represent actual
cash sales and farm production value based on volume of production, illustrates the extent to which grains and
oilseeds production is consumed within the agricultural sector. Grains and oilseeds inputs are critical to the
ongoing operation of most other forms of production, particularly livestock.

5.4 Comparison with Closest Competitors
As detailed in Chapter 3, Ontario’s largest trading partners are the northern areas of the United States. Ohio,
Michigan, Pennsylvania and New York compete with, and interact with Ontario in the production of grains and
oilseeds.

Comparisons of production levels for the various states close to Ontario confirm that in 2002, production levels
in the province were equal to or above that of its nearest American neighbours. As shown on Figure 62, in
2002, Ontario was second to Ohio in acres of winter wheat and soybeans harvested, first in the harvesting of
barley and spring wheat3, second in area harvested in oats and third with respect to corn. Statistics for 2007,
contained in Figure 63 confirm that this pattern continues.

Figure 62 – Ontario Comparison of Crops Harvested, Bushels and Yield to New York, Ohio, Pennsylvania and
Michigan, 2002
Corn for Grain Winter Wheat Spring Wheat
Crops Crops Crops
Harvested Yield Harvested Yield Harvested Yield
(Acres) Bushels (bu/acre) (Acres) Bushels (bu/acre) (Acres) Bushels (bu/acre)
Ontario 1,910,000 216,000,000 113.1 580,000 41,800,000 72.1 170,000 8,600,000 50.6
New York 450,664 42,767,720 94.9 115,300 6,630,107 57.5 380 9,600 25.3
Ohio 2,869,951 254,817,899 88.8 796,085 46,929,358 59.0 ‐ ‐ 0.0
Pennsylvania 790,111 52,645,120 66.6 172,137 8,936,589 51.9 ‐ ‐ 0.0
Michigan 2,007,021 234,709,542 116.9 430,193 28,080,725 65.3 3,590 168,213 46.9
Oats Barley Soybeans
Crops Crops Crops
Ontario 100,000 6,700,000 67.0 320,000 18,200,000 56.9 2,065,000 70,000,000 33.9
New York 67,032 4,138,239 61.7 12,569 589,695 46.9 139,435 4,472,702 32.1
Ohio 55,151 3,254,377 59.0 5,745 312,127 54.3 4,718,690 149,809,069 31.7
Pennsylvania 117,653 6,768,130 57.5 54,292 3,774,180 69.5 378,846 9,665,498 25.5
Michigan 63,485 3,994,940 62.9 11,620 576,461 49.6 2,055,424 78,197,248 38.0

Figure 63 – Ontario Comparison of Crops Harvested, Bushels and Yield to New York, Ohio, Pennsylvania and
Michigan, 2007
Crops Crops Crops
Ontario 2,055,000 275,000,000 133.8 595,000 43,800,000 73.6 180,000 9,200,000 51.1
New York 551,629 71,454,280 129.5 82,172 4,422,712 53.8 2,783 121,320 43.6
Ohio 3,606,246 526,601,789 146.0 732,106 42,997,358 58.7 ‐ ‐ 0.0
Pennsylvania 980,753 118,964,770 121.3 152,528 8,949,116 58.7 ‐ ‐ 0.0
Michigan 2,350,668 288,066,336 122.5 520,601 33,481,512 64.3 2,552 102,396 40.1

Crops Crops Crops
Ontario 90,000 5,700,000 63.3 165,000 10,000,000 60.6 2,225,000 73,500,000 33.0
New York 60,999 3,556,221 58.3 10,793 530,407 49.1 199,775 7,456,657 37.3
Ohio 46,348 2,883,967 62.2 2,994 159,965 53.4 4,236,337 191,559,567 45.2
Pennsylvania 79,943 4,237,273 53.0 41,986 3,053,989 72.7 431,053 17,386,829 40.3
Michigan 55,046 2,972,519 54.0 12,953 642,216 49.6 1,715,427 67,515,728 39.4
3
Ohio and Pennsylvania did not break out spring wheat production.
PLANSCAPE INC. 92
With respect to yield per acre, in 2002, Ontario led in the production of winter wheat, spring wheat and oats,
and was a very close second in the yield per acre for corn for grain, barley and soybeans. In 2007, as shown on
Figures 64 and 65, the pattern remained the same. However, in 2007 it is notable that corn yields increased
significantly, especially in Ohio.

Figure 64 – Ontario Comparison of Yield (bu/acre) to New York, Ohio, Pennsylvania and Michigan – 2002
140.0

120.0

100.0

Yield (bu/acre)
80.0

60.0

40.0

20.0

0.0
Ontario New York Ohio Pennsylvania Michigan

Figure 65 – Ontario Comparison of Yield (bu/acre) to New York, Ohio, Pennsylvania and Michigan, 2007
160.0
Corn For Grain Winter Wheat
Spring Wheat Oats
Barley Soybeans
140.0

120.0

100.0

Yield (bu/acre)

80.0

60.0

40.0

20.0
0.0
Ontario New York Ohio Pennsylvania Michigan
5.5 Linkages with the Agri‐Food System
In addition to its position as an independent component of the economy, primary agriculture is also at the
heart of the agri‐food system, a significant component of both the Ontario and the Canadian economy. In
2006, the agri‐food sector was estimated to contribute $87.9 billion to Canada’s gross domestic product (GDP),
representing 8% of total GDP, and employed 2.1 million Canadians.4 Primary agriculture, as an integral part of
the agri‐food system, contributed 1.3% of national GDP.

Figure 66 – The Agriculture and Agri‐Food System’s Contribution to GDP and Employment, 2006

Ontario is a focus of the agri‐food industry. In 2006, Ontario contributed 34.2% of national agricultural and
food processing GDP.

Figure 67 – Provincial Contribution to Canadian Agriculture and Food Processing GDP, 2006

4
AAFC An Overview of the Canadian Agriculture and Agri‐Food System, 2008 pg xv
PLANSCAPE INC. 94
Ontario residents comprise 33.5% percent of people employed in the Canadian agriculture and food processing
industry.

Figure 68 – Provincial Employment in the Agriculture and Agri‐Food System, 2005

The Canadian agriculture and agri‐food system is a complex, integrated production and distribution chain of
industries with primary production being the main input. In addition to being a vital part of the domestic
economy, it is an integral part of the global economy with trade occurring at each stage in the chain.

Figure 69 – The Agriculture and Agri‐Food System.


There are a number of value chains inherent in the agri‐food system. One chain is associated with food
production. Another chain is associated specifically with primary production as described below. This is the
chain that generated the economic impact discussed in Chapter 4.

Agriculture specific input and service suppliers that support primary producers constitute a whole value chain
within the agriculture and agri‐food system and include manufacturing, service and retail/wholesale activities.
They supply and support primary agriculture and at the same time act as buyers from downstream industries.
Agriculture specific input and service suppliers range from multinational firms producing agricultural
machinery and implements to small local businesses selling feed and pesticides. Below, in Figure 70, is an
illustration showing the value chain of specific input and service suppliers.

The following is an illustration of how the value chain, which is dependent on the production of the raw
commodity, works.

Wheat is grown and sold to the mill where it is processed into flour – value is added. The flour is sold to the
bakery where it is baked into bread – value is added. The bread is sold to a grocer who sells it to the public –
value is added. Each of these steps involves the purchase of goods and services which contributes money to
the economy. At each step wages are paid which also contribute to the economy.

Figure 70 – The Value Chain of Agriculture Specific Input and Service Suppliers

PLANSCAPE INC. 96
The food producing value chain is in addition to the one described above and generates its own economic
impact in addition to the one generated by primary production. According to OMAFRA, Ontario’s agri‐food
sector accounts for more than 640,000 jobs, and is worth $25 billion annually, second only to the automobile
sector when it comes to overall impact in the provincial economy.
Secondary components of the value chain also have a significant economic impact. The impact of the Ontario
bio‐food sector on the provincial economy is estimated at $33 billion and 760,000 jobs. This impact consists of
direct effects, including expenditures attributable to bio‐food companies themselves, and indirect effects,
which correspond to the expenditures incurred by bio‐food companies’ suppliers and associated suppliers.

Grains and oilseeds also contribute to this economic force. As home to one of the most diverse food
production clusters in the world, Ontario exports approximately $8.5 billion in food products annually which
represents 28% of total annual Canadian agri‐food exports. As illustrated in Figure 66, grains and oilseeds
make a significant contribution to the value of the products shipped.5
Figures 71, 72 and 73 illustrate how three of the major commodities: corn, oilseeds and wheat, factor into
various components of the value chain linking primary and secondary production.
Figure 71 – Flow Chart – Corn Processing
FOOD & NUTR ITION

INGREDIENTS

XANTHAN GUM
CORN STARCH, FIBERSOL-2®

CORN SYRUP, HIGH FRUCTOSE CORN SYRUP
DEXTROSE
Y DEXTROSE, MALTODEXTRIN AND FRU CTOSE
CORN RR saccharification hydrogenation SORBITOL
LU fer mentation
S
corn dry RC
H BEVERAGE ETHANOL+

A NIMAL N UTRITION
milling A D ISTILLER S GRAINS+ (WET OR D RY)
ST
LYSINE, THREONINE AND ASTAXANTH IN
CORN STEEP LIQUOR XANTHAN GUM

corn wet
GLUTEN CORN GLUTEN MEAL
milling
COR N GLUTEN FEED (WET OR DRY)
FIBER

CSL

ETHANOL & INDUSTRIAL ALCOHOL
XANTHAN GUM, CITRIC ACID, SORBITOL
INDUSTR IAL STARCH ES, DEXTRIN
INDU STRIALS
ETHYL LACTATE
FUELS &
Denotes Process
S our c e: A D M, http : // ww w. admw orld . com/ na en/

5
OMAFRA, “Overview of Ontario’s Food Processing Industry”
Figure 72 – Flow Chart – Oilseed Processing
ORGANIC WHOLE SOYBEAN
FOOD & NUTRITION

MEAL SOY FLOUR, TVP®, SOY CONCENTRATES, AND MEAT ALTERNATIVES
IN GREDIENTS
isolation SOY ISOLATES

ex
n
t io
tr a
ISOFLAVONES
iza
c ti
or
on
VITAMIN E, STEROLS
OILSEEDS od
CRUDE OIL de EDIBLE OILS
LECITHIN
refining
c rushing SHORTENING
TRANS-FAT-FREE PRODUCTS

hydrogenation
enzymatic intere sterification

ANIMAL NUTRITIO N

NATURAL SOURCE VITAMIN E
VEGETABLE OIL
LECITHIN

SOY PROTEIN CONCENTRATE
OILSEED PROTEIN MEAL

INDU STRIALS
Denotes Process

F UELS &
INDUSTRIAL OILS

esterification

BIODIESEL
REACTIVE COALESCENT

Sour c e: A DM, htt p: // ww w.a dmw orld.c o m/naen/

Figure 73 – Flow Chart – Wheat Processing

FOO D & NUTRITION

INGREDIENTS
WHEAT STARCH
FLOUR
WHEAT GLUTEN
WHEAT ANIMAL NUTRITION
milling
Denotes Process
INDUSTRIALS
FU ELS &
INDUSTRIAL STARCHES, DEXTRIN
Sou rc e: A DM, http:/ /w ww .admw orld. com/naen/

Phot o - R. Pas ut a (H amilton)
Domestically the Ontario food producing sector generates in excess of 120,000 jobs and more than $32.5
billion in annual sales. Between grains and oilseeds milling and production of baked goods, the grains and
oilseeds sector has a direct connection to 19.5% of total annual food producing value.

PLANSCAPE INC. 98
Figure 74 ‐

5.6 Conclusion
This brief description of the contribution the grains and oilseeds sector makes to the national and provincial
economy underscores the importance of the sector. As traditional manufacturing sectors face increasing
pressure, it is important to recognize, support and nurture the contribution of grains and oilseeds producers as
essential contributors to the
economic prosperity of Ontario.

CHAPTER 6
ISSUES AND TRENDS

6.1 Introduction
As a fundamental component of the agricultural community, the grains and oilseeds sector is subject to the
challenges and issues facing all producers. It is also subject to trends that are specific to the sector. In this
chapter, some of these issues and trends are considered in conjunction with comments on opportunities
available to growers as well as actions that can be taken to enhance the already considerable financial
contribution grains and oilseeds make to the provincial economy.

6.2 Farmland Values
Cost and availability of farmland is an issue for all producers. It is a challenge both for established operators
wanting to expand their operations and to new farmers hoping to get into the industry. The cost of land and
the associated property tax varies considerably across Ontario and from province to province, meaning that
producers in one region will be working with higher land costs and competing with producers whose costs are
lower.

As shown on Figure 75, farmland values have been increasing in Canada since 2000.

Figure 75 – Canada – Semi‐annual Percentage Change in Farmland Values

According to Farm Credit Canada, there is growing interest in acquiring farmland as an investment, particularly
in the western provinces where the price of farmland is relatively low compared to parts of eastern Canada.1 In
Ontario, as shown on Figure 76, farmland values have been increasing at a variable rate since 2000. Prices
increased 4.6 % in the first six months of 2008, in an upward trend that is consistent across the province.

1
Farm Credit Canada Farmland Values Report October, 2008.
Figure 76 – Ontario – Semi‐annual Percentage Change in Farmland Values

Within Ontario, there is a significant value in the cost of land in certain parts of the province, not so much
because of its productive value for agriculture, but because of potential development value. Farm Credit
monitors the average farmland values across Ontario. During the period from 2005 to 2007 these values
ranged from lows of less than $1000 per acre in the northern region to highs of $13,000 in Innisfil Township
and $20,000 in Niagara on the Lake.2 Even in predominantly agricultural areas, prices vary widely. Wide
variations in capital costs, with the associated higher taxes, can mean that operators from area to area are not
competing on an equitable basis.
6.3 Age Profile
There is significant publicity about the rising average age of Canadian farmers and as
Figure 77 confirms, this concern is justified. While the average age of Canadians as a whole is rising, it is rising
more quickly in the
farm population. In
2006, the share of
operators over the
age of 54 climbed to
40%. Although the
age profile improves
slightly as the value
of the farm
operation rises, the
average age of
operators is still
high.

2
Ibid.
PLANSCAPE INC. 102
Figure 77 – Percentage Distribution of Ontario Farm Operators by Age 1991 ‐ 2006
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Year
1991 1996 2001 2006
Under 35 years 35 to 54 years 55 years and over

Failure to attract younger operators to farming is an issue. The future of agriculture will be negatively
impacted if farming is not viewed by younger
people as a desirable career option. As
Canadians become increasingly urbanized,
agriculture as a career is not something that is
considered. Immigration policy, which used to
focus on agricultural workers, has shifted to
urban professionals. Relying only on the
existing farm population to replace itself will
not be sufficient. The farm community is
working to raise the profile of farming as a
career but it will require the assistance of
various levels of government to make a
difference.

6.4 Commodity Prices
One of the biggest challenges facing farmers is commodity prices. Figures 78, 79 and 80 track the prices for
three of the leading commodities. The significant fluctuations in the values illustrate one of the challenges
facing farmers. Prices can be impacted by numerous factors beyond the control of farmers including weather,
disease, fluctuations in international markets, changes in government policy, trends in other sectors, and are
not predictable from year to year. Input costs continue to rise, leaving farmers vulnerable to the year to year
unpredictability of the market.

Figure 78 – Historical Price Per Unit ($/tonne) of Grain Crops in Ontario, 1981 – 2004
$400

$350

$300

Price Per Unit ($/tonne)

$250

$200

$150

$100

$50

$0
1981 1986 1991 1996 2001 2004

Winter Wheat 157 110 118 181 138 130
Spring Wheat 143 119 124 235 153 170

Corn for Grain 115 90 105 153 135 116
Soybeans 264 232 227 370 269 283

Figure 79 – Historical Price Per Unit ($/tonne) of Bean Crops in Ontario, 1981 ‐ 2004
$1,000

$900

$800

$700

$600
Price Per Unit ($/cwt)

$500

$400

$300

$200

$100

$0

1981 1986 1991 1996 2001 2004
Dry White Beans 677.00 931.00 254.00 547.00 606.00 635.00
Coloured Beans 759.00 677.00
PLANSCAPE INC. 104
Figure 80 – Canadian Canola and Soybean Prices, 1991 – 2006

In addition to volatility, actual decline in prices is another significant issue. Not only have prices not increased,
over time they have actually declined. Between December 2003 and December 2004, the grain price index fell
by 36.8%. Between November 2004 and 2005 it fell by 15.1%.3 At the same time costs continued to rise.
Between 2002 and 2005 there was a 41% increase in gasoline prices and a 56% increase in diesel.4 The impact
of this combination of factors on farm realized net income is shown on Figure 81.

Figure 81 – Canadian Realized Net Incomes (adjusted for inflation)

In the past couple of years, there has been some improvement in commodity prices. Prices of corn, soybeans,
and wheat have increased. Contributing to the increase are two fundamental changes that have impacted
worldwide consumption of grains and oilseeds. One is the changing diet of consumers in the third world
3
Canadian Federation of Agriculture, Measuring the Farm Income Crisis, 2007
4
Ibid.
where increased income is generating a demand for different food products. The second is the growing
demand for ethanol and biodiesel in the U.S., Brazil and Europe that has created a new market for crops. Now
however, with the drop in the price of crude oil and the development of alternative sources of biofuel, prices
may stabilize. Even when demand was high, estimates were that the impact of ethanol production on corn
prices was less than 3%.

Another factor driving prices is a decline in world cereal stocks caused primarily by a drought in Australia. This
has put additional pressure on other producers and driven prices higher. The stock to use ratio for wheat was
at 25% in 2007, compared to 44% in 1999; for coarse grains it fell to 20% in 2007 from 33% in 1999. 5

It is difficult to predict if this rise in prices will continue or be sustained. As noted earlier in this report, price
volatility has always been a problem for the sector, and over time, in terms of real dollars, there has been a
continued erosion of prices. Prices per unit today are generally lower than they were in the early 1980s.

Fluctuating prices have always been an issue for farmers because of the interrelationships that exist for
agriculture. Figure 82 illustrates the complexity of this issue. As farm market receipts for grains and oilseeds
have increased over the past five years, receipts for hogs have declined and receipts for cattle and calves have
been very low. Given that the livestock sector must rely on the grains and oilseeds sector for inputs, the
positive market for one sector can exacerbate the negative factors for another. Often producers are involved
in both markets. Therefore, the profit earned from a rise in commodity prices is consumed by the associated
price drop in the livestock sector. Unpredictability and volatility are both issues for farmers.

Figure 82 – 2007 Farm Market Receipts by Commodity, Relative to Five‐Year Average

5
Organization for Economic Cooperation and Development (OECD) www.OECD.org/
PLANSCAPE INC. 106
6.5 Safety Nets
As shown in Figure 83, government programs designed to address the vulnerability of agricultural producers to
price fluctuations through program payments have met with varying levels of success. In response to this
there has been considerable effort on the part of producer organizations to develop risk management
programs which address the interests of grains and oilseeds producers but have the flexibility to work for other
commodity groups as well.

Figure 83 – Average Net Market Income and Program Payments, 2003 – 2008

Formation of the Grains and Oilseeds Safety Net Committee was initiated to manage the creation of a new Risk
Management Program (RMP) designed to offset the Canadian Agricultural Income Stabilization Program (CAIS).
CAIS, working in conjunction with Production Insurance Programs (PIP), was phased out in 2008. It was the
latest of a series of business risk management programs that were first implemented in the 1950s to provide
farmers with some protection from income volatility. CAIS, working with PIP, which replaced the Net Income
Stabilization program (NISA) and the Ontario Farm Income Disaster Program (OFIDP) in 2004, was a “one size
fits all” income stabilization program designed with the following key principles:

• Permanent disaster coverage for farmers;
• Equitable treatment of all farmers across all commodities in all provinces;
• Better direction of government dollars to need;
• Affordable coverage for beginning farmers;
• More effective assistance in back–to–back disasters; and
• Streamlined programs that work well together.

The problem with the program was that while it made up for years of below average prices, it did not account
for the steady downward trend in prices; each year the trigger was lower than the last, making payments
lower and harder to access.

When the grains and oilseeds sector was hit with a collapse in world prices in 2005, CAIS did not work to
protect producers. In response, the G&O Safety Net Committee worked with government to create the RMP
as an important business tool specifically for grains and oilseeds producers. This program is being
implemented provincially as a three year pilot project. However, its effectiveness is reduced by the absence of
a federal share in the program. Although prices are currently good, the history of the sector confirms that over
time prices will fall. The purpose of the RMP is to address the difficult times and to reduce the volatility of the
sector so there can be long term security.

The ongoing shifting of government policy on income stabilization policies creates uncertainty for producers.
6.6 Capital Costs
Entering into and staying in the business of farming requires a large capital investment that must be carried on
the basis of production. This can be a major disincentive for new farmers wanting to get into the business and
a burden for existing operators. Today, tightening credit markets, volatility in the Canadian dollar and an
uncertain economic outlook, add to the uncertainty for producers.

As shown on Figures 84 and 85, the average net worth of both Ontario farms and grains and oilseeds
operations has continued to increase since 2003. In 2006, the increase in net worth for Ontario farms as a
whole, and for grains and oilseeds operations specifically, exceeded the five year average. This increase can be
attributed to increased land values, which also create problems. Higher property values translate to higher
taxes. The increased value cannot be realized unless there is a sale and if prices are high, other operators may
not be able to afford to buy the land.

Figure 84 – Net Worth by Province, 2006 Compared to 5‐year Average (2001 to 2005)

Figure 85 – Net Worth by Farm Type, Canada, 2006 Compared to 5‐year Average (2001 to 2005)

PLANSCAPE INC. 108
High capital costs are reflected in the high levels of debt associated with farming. A comparison of net income
and average per farm debt between the United States and Canada in 2005, confirmed that per farm net
income in the United States was $42,198 per year with average farm debt at $123,301 (Can $’s). In Canada, net
cash income was $27,659 per year and average per farm debt was $219,440 (Can $’s). 6 For the period up to
and including 2005, the debt to equity ratio on Canadian farms was rising. Although it declined in 2006, the
issues associated with volatile prices, unpredictable markets and an uncertain Canadian dollar all combine to
make the business of farming challenging.
6.7 Production Costs
Cost of production continues to rise for Ontario farmers. One of the most significant input costs for farmers is
energy in the form of fuel and fertilizers. Figure 86 tracks the increase of world crude oil prices over the period
from 2002 to 2007. Even without the sharp increases of 2008 shown on this figure, the increasing costs, when
compared to the volatility in farm prices and stagnant or declining commodity prices, illustrates the issues
producers have in dealing with costs.

Figure 86 – World Crude Oil Prices, 2002 – 2007

“Energy efficiency can be increased by decreasing energy use from ‘inputs’ such as fertilizer, herbicides, tillage
operations, or by increasing the ‘output’, i.e., crop yield” (Swanton et al., 1996), demonstrates that energy
efficiency in production of corn and soybean has increased by nearly 50% in Ontario between 1975 and 1991.
Yields have increased because of innovations in crop breeding, and energy use has decreased because of
improved manufacturing and application efficiencies. One of the main improvements has been in the
manufacturing of fertilizer which accounts for over 70% and 30% of energy used in corn and soybean,
respectively.7

In addition to the cost of primary production, costs associated with value added production can also be an
issue. As shown on Figure 87, Canadian costs of production are higher than in the U.S. for many food
processing industries, and its competitive position is deteriorating as labour costs rise. In Canada, cost of
production accounted for almost 80% of food manufacturing shipments, compared to about 70% in the U.S. in
2003.8

6
Canadian Federation of Agriculture, Measuring the Farm Income Crisis, Revised 2007, Pg 3
7
Swanton, C, Murphy, S, Hume, D, and D. Clements, Recent Improvements in the Energy Efficiency of Agriculture: Case Studies from Ontario, Canada,
Agricultural Systems, 52 (1996), pg 415
8
Agriculture and Agri‐Food Canada, An Overview of the Canadian Agriculture and Agri‐Food System, May 2007, p. 51.
Volatility in the value of the Canadian dollar has a significant impact on value‐added exports. The Canadian
dollar has appreciated by about 40% over the past five years. In 2000, the Canadian dollar was worth an
average US$0.67 and it became stronger than the US dollar in 2007. In response, value‐added exports
flattened, while exports of primary agriculture products increased during this period of currency appreciation.
However, a strong Canadian dollar reduces the prices that Canadian farmers get for their grain because of
market price gains mainly in US dollars. Now that the value of the dollar has decreased again in late 2008, new
market shifts will occur.

Figure 87 – Cost of Production as a Share of Food Processing Shipments Canada – US, 2003
6.8 International Competition
The success of the agriculture and agri‐food sector depends on trade as Canada’s domestic market is relatively
small. During the last 15 years, Canada has increased its share of world agri‐food trade in response to trade
liberalization and changing market conditions by producing increasingly value‐added goods that meet changing
consumer and market demands.

As shown on Figure 88, Canadian
agriculture is highly dependent on the
export market. In 2006, nationally, the
grains sector earned 49% of its net
receipts from exports, and oilseeds
earned 84%. The Ontario sector is no
different. As shown on Figure 89, a
significant percentage of provincial
production is exported. The reliance of
Canadian producers on exports, in
comparison to producers in other
countries, is illustrated in Figure 90.

PLANSCAPE INC. 110
Figure 88 – Share of Production from Export Sales, 2004 ‐ 2006

Figure 89 – Ontario Grains & Oilseeds Exports

Figure 90 – Share of Farm Market Receipts from Export Sales for Canada, the US and EU, 1999 – 2006

The reliance on export markets exposes producers to the challenges associated with the international market.
Of major concern to Ontario producers are barriers to trade including domestic subsidies and tariffs. While
agreements such as NAFTA have improved access to markets, problems with subsidies and trade barriers still
exist even in the supposedly barrier free markets of North America. WTO negotiations are slow and frustrating
and grains and oilseeds producers face challenges maintaining tariff parity with competing products from
other exporting countries.

If trade issues can be resolved, Ontario producers are in a good position to capture additional markets. The
Canada Agri‐Food Alliance did an analysis on annual export values in 2007, illustrated on Figure 91. It was
concluded that based on 2003 – 2005 average export levels, as a result of tariff reductions and trade
liberalization, exports of grains and oilseeds as primary commodities could increase from the 2003 – 2005
average level of $4.024 billion to $5.312 billion9. However, until trade negotiations are complete, the
inequities of the system cause major problems for Ontario farmers.

Figure 91 – Annual Export Values

In dealing with the United States, Ontario producers benefit from an open border. The increasing security at
the border is of concern because it increases the time and complexity involved in managing trade. For
commodities that move back and forth as part of a production chain, a less porous border is a growing issue.

9
Canadian Agri‐Food Trade Alliance, “Canada’s Grains and Oilseeds Sector”, 2007. www.cafta.org
PLANSCAPE INC. 112
6.9 Environment
Farmers have always been good stewards of the environment. Given that they rely on the land for their
income, and nature for prosperity, they are motivated to act in the best long term interest of the resource.
However, over time, concern about the environment has grown and farmers are increasingly finding their
production techniques questioned and additional controls and regulations imposed on their operations.
Farmers have responded by changing their management techniques. For example, as Figure 92 shows, over
time the use of fertilizers has declined. Tillage practices (Figure 93) have adjusted to incorporate best
management practices.

Figure 92 – Land Management Practices 1981 – 2006
80

70

60

Percent of Total Farmland
50

40

30

20

10

0
Year
1981 1986 1991 1996 2001 2006
Commercial Fertilizer Herbicides Insecticides Fungicides

Figure 93 ‐ Tillage practices used to prepare land for seeding, Ontario, census years 1991 to 2006
Ontario 1991 1996 2001 2006
Total land prepared for seeding
Farms reporting 50,047 44,077 41,775 38,676
Area in acres 6,198,253 6,167,161 6,669,735 6,670,555
Percentage of total land prepared for seeding 100.0 100.0 100.0 100.0
Tillage incorporating most of the crop residue into the soil
Farms reporting 44,664 36,130 32,463 26,893
Area in acres 4,846,165 3,667,924 3,452,834 2,929,031
Tillage retaining most of the crop residue on the surface
Farms reporting 9,730 11,472 10,557 11,341
Area in acres 1,102,043 1,374,771 1,444,045 1,657,893
No‐till seeding or zero‐till seeding
Farms reporting 3,850 8,374 12,055 12,637
Area in acres 250,045 1,124,466 1,772,856 2,083,631

These are just two examples of the ongoing adjustments farmers make to manage their relationship with the
environment. Other programs for environmental protection that farmers are subject to include: nutrient
management, source water protection and recently, species at risk. Farmers have responded with initiatives
such as environmental farm plans to confirm their commitment to good environmental practices. However,
the public is often unaware of these programs and the fragmented nature of the regulations. The ever
increasing burden of environmental controls is onerous.
6.10 Productivity
Growth in productivity in agriculture has been the result of technological change and innovation which over
time has resulted in higher yields per acre. Wheat yields for example, have increased substantially over the
past four decades in both Canada and the United States as a result of research and development in new
hybrids and agronomic practices. Wheat yields in Canada, although lower than in the U.S., have increased at a
faster rate, and almost doubled over the past four decades from 1.4 tonnes/ha to 2.6 tonnes/ha.

Figure 94 – Wheat Yields, 1960 – 2004

PLANSCAPE INC. 114

The use of genetically modified organisms (GMO’s) for crops such as corn and soybeans has improved
productivity. Use of GMO’s can restrict market access in certain jurisdictions but as shown in Figure 95 also
benefit the industry by allowing more efficient, high volume production.

Figure 95 – Historical – Corn for Grain and Soybean Crops in Ontario showing Yield (bu/acre) 1981 ‐ 2004
140.0

120.0

100.0
Yield (bu/acre)
80.0
60.0
40.0

20.0

0.0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Corn for Grain Soybeans

6.11 Farm Size
The nature of farming is changing. Farm size is increasing and the number of farms generating in excess of
$250,000 is growing. The number of smaller farms is declining. In 2004, the 15% of the grains and oilseeds
farms, with annual revenue of over $250,000, generated 57% of total revenue and 80% of net income in the
sector.10

Figure 96 – Farms Classified by Total Gross Farm Receipts, 1981 – 2006
100%

80%

60%

Percentage

40%

20%

0%
1981 1986 1991 1996 2001 2006

Under $10,000 $10,000 to $24,999 $25,000 to $49,999

$50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999

$500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and over

For smaller farms in the Ontario grains and oilseeds sector, the majority of income is generated off farm. The
percentage of off farm income drops as the size of the farm operation increases.

Figure 97 – Grains & Oilseeds Farm Incomes in Ontario by Revenue Class as a Percentage of Total Value (2004)

% Number of % Total % Total Net % Total Government % Total Off
Revenue Class Farms Revenue Income Payments Farm Income

$10,000 ‐ 99,999 63.3% 20.4% ‐2.0% 25.0% 28.3%
$100,000 ‐ 249,000 21.5% 23.9% 21.1% 30.9% 24.8%
$250,000 ‐ 499,999 9.7% 23.8% 40.1% 19.1% 32.2%

$500,000 ‐ 999,999 4.7% 23.2% 29.9% 19.1% 11.7%
Over $1,000,000 0.9% 8.8% 10.9% 5.9% 3.1%

As shown on Figure 98, farms in the $250,000 to $500,000 seemed to strike a balance where the levels of debt,
investment and size allowed producers to sustain reasonable margins and incomes.

10
Statistics Canada, Farm Financial Survey, 2004.
PLANSCAPE INC. 116

Figure 98 – Average Ontario Grains & Oilseeds Farm Net Operating Margin by Net Income Quartile, 2004

At the highest levels of revenue, not surprisingly, levels of equity and liabilities were the highest.

For the Ontario grains and oilseeds sector during the period between 1997 and 2004, the category that
increased the most was the $250,000 ‐$500,000 grouping. During the same period, 165 operators left the
industry, largely from the lower income categories. As shown on Figure 99 there was a general shift toward
the middle range of value. This differs from other sectors where the decline was at the bottom but the
growth was focused in the largest revenue class.11

Figure 99 – Percentage Change in Ontario Grains & Oilseeds Farm Numbers by Revenue Class, 1997 – 2004

11
Sparling, David & Kristine Jack, “Challenging Past – Incredible Future, A Look at Past Income and Future Prospects for Ontario’s Oilseed and Grain
Industry”, Institute of Agri‐Food Policy, April, 2007.
6.12 Export Profile
The composition of Canadian export sales continues to change over time. In 2006, grains and oilseeds
products had declined from 47% of export sales in 1991 to 24.5% in 2006, mostly as a result of a decline in
wheat exports. In 2007, the profile shifted a little with grains and oilseeds exports accounting for 28.7% of
sales. This increase from 2006 was probably due to a rise in wheat exports.

Figure 100 – Commodity Composition of Export Sales, 1998 and 2007

Shifts in export profile can be due to a variety of factors including weather, consumer demand, and trade
agreements. The drought in Australia has had an impact on markets as has increased demand for products
that require grains for production.

NAFTA
“The North American market is becoming increasingly integrated, resulting in a higher intensity of Canadian‐
U.S.‐Mexican agri‐food trade. Canada and Mexico are more dependent on NAFTA trade of agriculture and
food processed products than the U.S. Canadian agriculture and agri‐food export sales to the U.S. have
quadrupled since 1990, while those to Mexico have increased nine fold.”12

Oilseeds
CFTA and NAFTA have not had a major impact on U.S.‐
Canada trade in oilseeds and oilseed meals, mainly because
this trade was quite liberal before CFTA. Much of the
expansion in Canada's net trade is due to a larger surplus of
canola meal (mostly used to feed cattle) and a deficit of
soybean meal (mostly used to feed swine and poultry). Of all
the oilseeds and oilseed products, CFTA and NAFTA have
most affected U.S.‐Canada trade in vegetable oil. The growth
of this trade has modestly contributed to lower U.S. prices
for domestically produced oilseeds.

12
Agriculture and Agri‐Food Canada, An Overview of the Canadian Agriculture and Agri‐Food System, May, 2007, p. 43.
PLANSCAPE INC. 118
Grain (Corn)
CFTA and NAFTA have had a small, positive effect on U.S.‐Canada
corn trade in both directions. However, local availability of corn
in eastern Canada has had a greater impact on trade than the two
agreements.13

Globally, in 2002, Canada exported $7.6 billion worth of grains
and oilseeds and related products representing 30% of total agri‐
food exports.14 Trade growth is being driven by value added
products.

Figure 101 – Agriculture and Agri‐Food Export Sales, 1990 – 2005
6.13 Summary
This chapter has provided a synopsis of some of the issues and trends impacting the grains and oilseeds sector.
What this summary illustrates is the complexity of the issues affecting the sector and the diversity of issues
facing farmers. It is an interesting and challenging time for operators.

13
Effects of NAFTA on Agriculture and the Rural Economy, Economic Research Service, USDA, pg. 71
(http://www.ers.usda.gov/publications/wrs0201/wrs0201i.pdf)
14
Canada’s Agriculture, Food and Beverage Industry, Government of Canada
CHAPTER 7
CONCLUSIONS

7.1 Opportunities
The issues and trends affecting the grains and oilseeds sector also present opportunities. By taking advantage
of the linkages to the agri‐food sector, producers can and are benefiting from emerging technologies and
changing markets. What follows is a discussion of some of the opportunities from which the grains and
oilseeds sector could benefit.
7.1.1 Emerging Markets
The emergence of powerhouse economies such as India with growing middle‐income consumers bodes well
for future trade opportunities for the Canadian agriculture and agri‐food sector. As shown on Figure 98,
Canadian agriculture and agri‐food exports to Mexico, China, India and other developing economies have
increased since the early 1990s.

Figure 102 –Value of Canadian Agriculture and Agri‐Food Exports to Emerging Markets, 1992 – 2007

International consumers are changing their food preferences which provide the Canadian agri‐food sectors
with new opportunities for trade. Consumers are increasingly shifting their consumption towards higher value
products. In wealthier countries, the demand for food that is healthy, safe and convenient is growing. As living
standards rise in Southeast Asia, India and other parts of the world, consumers are seeking out new and more
expensive proteins, consuming more convenience food and adding more calories to their diet.

Figure 103 – Increase in Middle Income Consumers, 1996 ‐ 2006

All of these trends provide opportunities for agricultural and agri‐food producers to access new markets and
expand existing markets. As an integral part of the agri‐food industry, the grains and oilseeds sector can
benefit from these trends.
7.1.2 Consumer Trends
Changing consumer trends are triggering changes throughout the agriculture and agri‐food system.
Consumers are demanding more variety, more convenience and healthier food choices, accompanied by
proper assurances of quality and safety. Packaged food products, such as breakfast cereals and “ready to
serve” meals account for large shares of total food expenditures among consumers where demand for
convenience is growing. Niche markets for products such as organically certified food and non GMO products
can create opportunities for producers. Canada’s reputation as a safe, well regulated source of food can be
used to build market share.

Figure 104 – Average Annual Growth Rate in Retail Sales of Packaged Products, 2002 – 2006

PLANSCAPE INC. 122
7.1.3 Bioproducts
Significant progress has been made in the biotechnology field in the last two decades. New products such as
bioproducts, which are defined as, biologically‐based commercial or industrial products other than food; feed
and medicines made with biological or renewable agricultural (plant or animal); and marine or forestry
materials1, are presenting new opportunities for product development.

The government is supporting development of new
products through initiatives such as the Biofuels
Opportunities for Producers Initiative (BOPI). This is
funded through Agriculture and Agri‐Food Canada’s (AAFC)
Advancing Canadian Agriculture and Agri‐Food Fund
(ACAAF). The Agricultural Adaptation Council received
$1.3 million to fund biofuels projects in Ontario. The goal
of the project is to ensure farmers and rural communities
have greater opportunities to participate in and share the
benefits of the increased Canadian biofuels production.
This initiative helps producers develop sound business
proposals, as well as undertake feasibility or other studies
to support the creation and expansion of biofuel
production capacity.2
7.1.4 Processing
Innovations have also been taking place in food processing, primarily in collaboration with supply chain
partners. In Canada, about 37% of food manufacturing establishments introduced at least one product
innovation new to North America between 2001 and 2003. About 23% of establishments also introduced at
least one process innovation new to North America.3
7.1.5 Biotechnology
Biotechnology is a field presenting many opportunities. New approaches to traditionally difficult problems,
like the constant appearance of new diseases, are leading to the use of new technologies such as genetic
engineering and Genetically Modified Organisms (GMOs) being developed by plant breeding companies.4
7.2 Research and Development
Canada is a world leader in the preservation of genetic resources and the application of genomics (the study of
the structure and function of genes) in an agricultural context. Agriculture and Agri‐Food Canada’s expertise
includes seed storage and distribution, gene bank management, crop variety development and genetic
enhancement and improved germplasm as well as gene discovery. AAFC research centres focus on a broad
number of areas, including pest and disease resistance and management, molecular genetics, genetic
breeding, and improved germplasm.5 All of these initiatives benefit the grains and oilseeds sectors and
contribute to its reputation as being on the leading edge of technology.

1
Agriculture and Agri‐Food Canada, Bioproducts Development Survey, September, 2006, p. xi.
2
Agricultural Adaptation Council, Annual Report, 2007.
3
4
Canadian Agriculture Capabilities: A Global Resource. Agriculture and Agri‐Food Canada, 2005. http://www.agr.gc.ca/intdev, p 13
5
Canadian Agriculture Capabilities: A Global Resource, Agriculture and Agri‐Food Canada, 2005. http://www.agr.gc.ca/intdev. p 14
For example, a competitive marketplace and high yielding hybrids are providing financial opportunities for
canola growers in Ontario. With the help of the Canada‐Ontario Research and Development Program, growers
will soon benefit from trials on a canola hybrid with both increased cold tolerance and improved vigor. The
increased cold tolerance means producers can plant this seed earlier in the spring and spread out their busy
growing season a little longer. The improved vigor of the hybrid should mean less weed competition and
higher yields. It is hoped that high yielding hybrids such as this variety and today’s high market prices will spur
growers towards canola and help boost acres in Ontario.6
7.2.1 Organics
There is a movement to increase the production of organic products in Ontario and the Organic Council of
Ontario has received funding to establish its own organization. At this point in time, production of organic
grains and oilseeds is limited. In Canada in 2006, field crops were the predominant certified organic
commodity with 2,462 operations reporting organic field crops. Half of these farms were located in
Saskatchewan, followed by Ontario with 19% of farms.7

Organic markets can be
volatile, with periods of high
demand and short supply for
certain crops and periods of
high supply and sluggish
demand for others. However,
some grain markets are quite
stable. The demand for
organic grains varies widely,
depending on the type of
grain. Prices for organic
grains and oilseeds were
about double the
conventional prices from
1995 to 2003, and
occasionally three times as
high as conventional.8

Pricing in the organic grain market is very specific to the grain crop variety and choosing varieties of grains with
distinct traits, including top quality, helps to build market advantage. Rising consumer demand for organic
pasta, cereal, and bread products will create a demand for more organic flours and oils.9

Organic sales continue to grow as consumers are willing to pay a premium for these products. Purchases of
organic food products are still on the rise, although they represent a very small proportion of the total value of
food sold. Retail sales of certified organic food in Canada was estimated to be worth more than $1 billion in
2006. Mainstream grocery supermarkets accounted for only 41% of total organic food sales.10

6
Agricultural Adaptation Council, Annual Report 2007.
7
Agriculture and Agri‐Food Canada, An Overview of the Canadian Agriculture and Agri‐Food System, May,2007, p. 15.
8
Born, Holly, Marketing Organic Grains, National Sustainable Agriculture Information Service, January,2005, pg 1 (http://attra.ncat.org/attra‐
pub/PDF/marketingorganicgrains.pdf)
9
Ibid,
10
PLANSCAPE INC. 124
As the issues associated with organic production become better understood, there is a growing shift to
sustainable local production which represents a balanced approach to production.

Figure 105 – Estimates of Organic Food Sales Retail Market Channels, 2006

7.2.2 Geospatial Technology
Increasingly sophisticated technology is being used to assist producers. Canada is a world leader in geographic
information systems (GIS) and the other areas of geomatics needed to monitor soil, water and climate
conditions and has developed the skills for using satellite remote sensing to assess crops and to monitor land
use changes both in Canada and in developing and transitional economies.11
7.2.3 The Bioeconomy
As a whole, the bioeconomy represents economic activity that uses renewable bio‐resources and bioprocesses
to produce energy, industrial and functional foods and nutraceutical (FFN) products. The bioeconomy includes
biofuels, biogas, bioplastics, biochemicals, biofibres, functional foods, bio‐pharmaceuticals and
nutraceuticals.12

The global market for bioproducts in 2003 was valued at approximately $70 billion, of which 85% was for
biochemicals and bioplastics. However, the demand for biofuels and bioenergy has increased considerably in
recent years. It is estimated that the bioeconomy has the potential to be a $500 billion global market as early
as 2015.13

The impact of the Ontario bio‐food industry impact on the provincial economy is estimated at $33 billion and
760,000 jobs. This impact consists of direct effects, including expenditures attributable to bio‐food companies
themselves, and indirect effects, which correspond to the expenditures incurred by bio‐food companies’
suppliers and these suppliers’ suppliers. The total impact is thus the sum of the total effects (direct and
indirect).14

11
Canadian Agriculture Capabilities: A Global Resource. Agriculture and Agri‐Food Canada, 2005, http://www.agr.gc.ca/intdev. p 17
12
13
14
Dupuis, Raymond and Maurice Dyon, The Impact of Bio‐Food Industry Activities in Canada, Ottawa.
Globally, there are various reasons why countries are promoting the bioeconomy and biofuels in particular.
The main drivers worldwide include energy security, the environment, rural development and farm revenues.15

“The demand for biofuels has also created opportunities and challenges for agricultural producers through
increased demand for agricultural commodities as inputs and increased feedstock prices.”16 Bioeconomy
inputs such as soybeans, grains or manure, produced on the farm, can be used to create alternative fuels and
green energy, contributing to a cleaner environment.

World Grain supplies are at their lowest point since the 1970s and the U.S. Department of Agriculture recently
released figures suggesting they will hit their lowest level since 1948.17 Part of the reason for this is the shift to
ethanol production and increased grain consumption to emerging economies.

Figure 106 – Corn Consumption and Imports, 1991 – 2006

The bioeconomy can be an alternative source of income for farmers. Increased demand for existing and new
agricultural commodities for non‐food, non‐feed industrial uses can lead to increased farm revenues from
greater volumes sold and higher commodity prices. The recent trend in U.S. corn prices is an example of the
response to increased corn demand for biofuel production. However, rising corn prices may have a negative
impact on livestock producers who use grain as input.18 There are indications that the corn based ethanol
market is softening as world oil prices plunge and alternative sources of biofuels are becoming available. As
with all new trends, it is important to proceed with caution and to understand the implication of embracing
new markets before making long term plans based on them.

15
16
Ibid.
17
The Globe and Mail, The World’s Hottest Commodities Are In Your Cereal Bowl, February 16, 2008, p. B4‐B5.
18
PLANSCAPE INC. 126

7.2.4 Nutraceuticals and Functional Foods
The development and marketing of nutritional and functional foods is an expanding area of activity in Canada.
Functional foods (eg. oat bran (soluble fiber) and tomato lycopenes (anti‐cancer) and nutraceuticals (eg.
essential fatty acids from flax, isoflavones from soy)), are food components that occur naturally, and are either
consumed directly for beneficial physiological effects as ingredients added to foods, or are isolated and
purified to be consumed as supplements in dosage form. These new products may have the potential to
reduce the risk of chronic disease such as heart disease, cancer, osteoporosis, diabetes, macular degeneration,
and arthritis.19

In response to consumer concerns about health and diet, Canada has demonstrated a capability in the
relatively new area of functional foods and nutraceuticals. Being home to a large, well established food
processing cluster, having a large and productive agricultural sector and the advantage of numerous research
facilities means Ontario is well positioned to take advantage of this potential market.
7.2.5 The Local Food Movement
Locally based food production and distribution systems function to reduce fossil‐fuel use in food trade and
transportation, undercut monocultures and increase biodiversity, promote organic agriculture by keeping the
side effects of food production close to home, protect and create jobs in agriculture and food processing, and
encourage cultural variation based on local food preferences and ecological differences. Locally based food
networks are a vital and fundamental part of any local economy.

To date the focus of local food movements has tended to be on fruits and vegetables. By raising the public
awareness of the products associated with the grains and oilseeds sector, there may be an opportunity to
benefit from this movement.
7.2.6 Local Ethnic Markets
Local demand for ethnic products is another rapidly expanding market in Ontario. With its diverse population
base and large agri‐food industry, the
opportunity to develop new products
for the local and ultimately the
export market is considerable.
Primary producers as the principle
suppliers of the agri‐food industry
should take advantage of the
opportunities this market provides.

19
Canadian Agriculture Capabilities: A Global Resource. Agriculture and Agri‐Food Canada, 2005. http://www.agr.gc.ca/intdev. p 15
7.3 Conclusions
The analysis contained in this report leads to a number of conclusions about the grains and oilseeds sector in
Ontario.

The sector has a long and successful history and is an integral and essential part of Ontario agriculture.

As an economic force, the primary production of grains and oilseeds generates an annual economic impact in
the Ontario economy of $9.9 billon based on farm production value. Even using the more conservative
estimate of farm cash receipts, the annual economic impact is $5.9 billion. This represents a major economic
presence in the provincial economy.

Grains and oilseeds have a significant role in the agri‐food value chain in Ontario. This component of the
Ontario economy contributes 34.2% of national agriculture and food processing GDP which in turn represents
8% of GDP. According to OMAFRA, Ontario’s agri‐food sector accounts for more than 640,000 jobs and is
worth $25 billion annually, second only to the automobile sector when it comes to overall impact in the
provincial economy.

In terms of efficiency gains, Ontario grains and oilseeds have kept pace with or exceeded the gains made by its
closest major American competitors.

The move by Ontario grain producers to create unified organizations to represent their interests is
commendable. One of the weaknesses of the Ontario agricultural community is the number of voices with
which it speaks. There is strength in numbers and banding together will increase the profile and influence of
the sector.

A stable grains and oilseeds sector is critical to the stability of other portions of the value chain. Fluctuations
impacting this sector will impact both other aspects of primary production and the agri‐food sector. Volatility
in one sector inevitably has an impact on other parts of the system. The size and influence of the grains and
oilseeds sector is such that negative pressures on it will impact the province and its residents as a whole.
Therefore it is essential that it be assisted in addressing the issues that could negatively affect it.

To ensure stability, issues associated with price fluctuations and market volatility need to be addressed.

This report confirms that grains and oilseeds has always been and continues to be an essential part Ontario’s
economy. It is also at the core of Ontario agriculture and supports the healthy lifestyle enjoyed in the
province. It is a sector that should be valued and supported.
PLANSCAPE INC. 128

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PHOTO SOURCE LIST
Chapter 1
Photo 1 ‐ www.redwheat.com/images/barley_field.gif ‐ Page 1
Photo 2 ‐ www.canadiandesignresource.ca/officialgallery/wp‐content/uploads/2009/06/canola‐canadian‐crop‐design.jpg Page 2
Photo 3 – www.assensus.org/images/20080730123843_summer_heat_over_a_grain_field.jpg Page 2
Photo 4 ‐ www4.agr.gc.ca/resources/prod/img/cb/apf/images/bull/bull_2004v03_4‐1_e.jpg Page 2
Photo 5 ‐ www.mah.gov.on.ca/Asset614.aspx Page 3
Photo 6 ‐ http://farm1.static.flickr.com/91/263019974_6f7e9948b4.jpg?v=0 Page 4
Photo 7 ‐ www.thethibertfarm.com/images/Teasle.jpg Page 5
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Photo 9 ‐ www.country‐guide.ca/daily_images/97560‐1.jpg ‐ Page 6

Chapter 2
Photo 2 ‐ www.affordable‐cruises‐tours.com/photo/11231902551107_Winter_Wheat_Harvest_Ontario_Picture.jpg Page 9
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Photo 8 ‐ www.ontariobeans.on.ca/producers/news/index.php ‐ Page 13
Photo 9 ‐ www.oopscc.org/images/soy_can1.png Page 14
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Photo 16 ‐ http://farm2.static.flickr.com/1298/1127027404_7a283468c5.jpg Page 17
Photo 17 ‐ www.fruitandveggie.com/images/stories/March%202007/canola.jpg Page 18
Photo 18 ‐ http://static.panoramio.com/photos/original/2903530.jpg Page 18
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Photo 21 ‐ http://bikininerd.typepad.com/.a/6a00d834519c0569e20115702628d9970c‐800wi Page 19
Photo 22 ‐ www.parheim.mb.ca/Pic_4july07.jpg Page 20
Photo 23 ‐ www.parheim.mb.ca/navybeanjuly2007_comments.htm Page 20
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Photo 27 ‐ www.images.com/search/sunflowers/?page=3&size=list Page 25
Photo 28 ‐ http://flaxseeds.blogspot.com/2005_09_01_archive.html Page 25
Photo 29 ‐ www.luminous‐landscape.com/images‐23/sunflowers‐4544‐thumb.jpg Page 25
Photo 30 ‐ www.parheim.mb.ca/navybeanjuly2007_comments.htm Page 25
Photo 31 ‐ http://celebratecanada.files.wordpress.com/2008/10/round‐bales.jpg Page 27
Photo 32 ‐ www.purityseeds.com/equipment.html Page 28
Photo 33 ‐ http://tinyfarmblog.com/wp‐content/uploads/2007/11/fal2007_fall_rye_in_mid‐november.jpg Page 28
Photo 34 ‐ http://grainscanada.gc.ca/str‐rst/ergot/images/figure3.jpg Page 29
Photo 35 ‐ http://farm1.static.flickr.com/82/264592065_7768d62080.jpg?v=0 Page 29
Photo 36 ‐ www.parheim.mb.ca/Pic_4july07.jpg page 29
XVIII ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
Photo 37 ‐ www.gettyimages.com/detail/10080111/Riser Page 30
Photo 38 ‐ http://farm4.static.flickr.com/3030/2774907531_db5ca23bff.jpg?v=0 Page 32
Photo 39 ‐ www.lakesidelair.com/farmer/grapesSoybeans.JPG Page 35
Photo 40 ‐ www.oznet.ksu.edu/fieldday/kids/pictures/kidsfield600/cg_corn.jpg Page 35
Photo 41 ‐ www.canadiansoybeans.com/cropreport_view.php?id=40 Page 35

Chapter 3
Photo 2 ‐ http://farm1.static.flickr.com/122/264403470_21136183d7.jpg?v=0 – Page 38
Photo 3 – http://gallery.photo.net/photo/5047354‐lg.jpg Page 39
Photo 4 ‐ http://farm1.static.flickr.com/85/264403472_77968d06a2.jpg?v=0 Page 39
Photo 5 ‐ http://4.bp.blogspot.com/_9GTi7Cvkr5s/SexQaJDVfBI/AAAAAAAACSY/I‐os2rbWTT0/s320/price_of_soybeans.jpg Page 40
Photo 6 ‐ www.omafra.gov.on.ca/english/crops/field/news/croppest/2009/05cpo09a3f2.jpg Page 40
Photo 7 ‐ http://farm4.static.flickr.com/3247/3015186211_eaa7d1330b.jpg Page 44
Photo 8 ‐ www.omafra.gov.on.ca/IPM/images/sweet‐corn/sweetCorn_pretty4_zoom.jpg Page 44
Photo 9 – http://cache3.asset‐
cache.net/xc/78437448.jpg?v=1&c=NewsMaker&k=2&d=B76A55A3BFD3C6A0CB87774A3DE61DEEE30A760B0D811297 Page 46
Photo 10 ‐ www.jungleseeds.com/images/BeanPurple.jpg Page 46
Photo 11 ‐ http://i.usatoday.net/news/_photos/2008/03/28/corn‐top.jpg Page 47
Photo 12 ‐ http://i.pbase.com/o6/75/47975/1/86622829.dwboV94q.Harvesting_67974.jpg Page 51
Photo 13 ‐ http://travel.mikehubbard.net/picse/ab04.jpg Page 51
Photo 14 ‐ http://1.bp.blogspot.com/_PWeId90eK2s/RqEBUSeM_0I/AAAAAAAABjg/bJBDg70‐J3k/s400/0720WellFed2.JPG Page 52
Photo 15 ‐ www.luminous‐landscape.com/images‐11/corn‐568‐thumb.jpg Page 54
Photo 16 ‐ http://farm4.static.flickr.com/3287/2740099538_10e61f1ec1.jpg?v=0 Page 54
Photo 17 ‐ http://2.bp.blogspot.com/_NK_ixNyhQRY/Rn_3p3M1dDI/AAAAAAAAARg/7xChk8FABSs/s400/Flaxflield.jpg Page 55
Photo 18 ‐ www.bylandwaterandair.com/naland01/nl1photo/07290105.jpg Page 55
Photo 19 ‐ www.treehugger.com/20090501‐corn‐field.jpg Page 57
Photo 20 ‐ www.jamesmcgee.ca/assets/photos/082608_cornfield_near_blumtn_lg.jpg Page 57
Photo 21 ‐ http://farm1.static.flickr.com/32/56874131_3697615831.jpg?v=0 Page 58
Photo 22 ‐ www.hylandseeds.com/images/pic‐corn‐field‐big.jpg Page 58
Photo 23 ‐ http://blog.molson.com/community/wp‐content/uploads/2008/10/md‐banner‐barley.jpg Page 59
Photo 24 ‐ http://farm1.static.flickr.com/79/263012615_c4dede0205.jpg?v=0 Page 60
Photo 25 ‐ www.wired.com/images_blogs/autopia/2009/05/corn_field.jpg Page 62
Photo 26 ‐ www.purityseeds.com/equipment.html Page 62
Photo 27 ‐ www.ethicurean.com/wp‐content/uploads/2009/06/istock_000006420954soybean.jpg Page 66
Photo 28 ‐ http://i.pbase.com/u47/nbarbee/upload/29981944.DSC00087.JPG Page 66
Photo 29 ‐ http://static.photo.net/attachments/bboard/005/005fBO‐13891584.jpg Page 70
Photo 30 ‐ http://sallygardens.typepad.com/photos/uncategorized/2008/01/17/bean_plants.jpg Page 70
Photo 31 ‐ www.luminous‐landscape.com/images‐11/canola‐thumb.jpg Page 71
Photo 32 ‐ http://farm1.static.flickr.com/48/175893865_925142afb0.jpg?v=0 Page 71

PLANSCAPE INC. xix
Chapter 4
Photo 2 ‐ http://farm1.static.flickr.com/79/263012615_c4dede0205.jpg?v=0 Page 73
Photo 3 ‐ www.hickerphoto.com/data/media/24/canola_field_sc0290.jpg Page 74
Photo 4 ‐ http://blog.americanfeast.com/images/Mowing%20Oats%20&%20Sweet%20Clover.jpg Page 75
Photo 5 ‐ www.country‐guide.ca/daily_images/97560‐1.jpg Page77
Photo 6 ‐ http://1.bp.blogspot.com/_PWeId90eK2s/RqEBUSeM_0I/AAAAAAAABjg/bJBDg70‐J3k/s400/0720WellFed2.JPG Page 78
Photo 7 ‐ www.chemicalparksarnia.com/agri.jpg Page 80
Photo 8 ‐ www.ontariocorn.org/images/Cornheader2.jpg Page 81
Photo 9 ‐ www.dominionpaper.ca/img/environment/biodiesel.jpg Page 83
Photo 10 – http://4.bp.blogspot.com/_9GTi7Cvkr5s/SexQaJDVfBI/AAAAAAAACSY/I‐os2rbWTT0/s320/price_of_soybeans.jpg Page 87
Photo 11 ‐ www.cbin‐rcib.gc.ca/pro/images/jaworski.jpg Page 87

Chapter 5
Photo 1 ‐ www.redwheat.com/images/barley_field.gif ‐ Page cvr
Photo 2 ‐ http://kikipotamus.files.wordpress.com/2007/08/laffertys2.jpg Page 89
Photo 3 ‐ http://www.ghgm.com/images/metaphors/Ontario%20Corn%20‐%20SBYoung%202006%20003%20(Small).jpg Page 89
Photo 4 ‐ http://thingtheory2009.files.wordpress.com/2009/05/corn.jpg Page 90
Photo 5 ‐ http://travel.mikehubbard.net/picse/ab04.jpg Page 98

Chapter 6
Photo 2 ‐ http://celebratecanada.files.wordpress.com/2008/10/round‐bales.jpg Page 101
Photo 3 ‐ http://farm1.static.flickr.com/82/264592065_7768d62080.jpg?v=0 Page 102
Photo 4 ‐ http://farm1.static.flickr.com/112/264403468_6de0573833.jpg?v=0 Page 109
Photo 5 ‐ http://www.canada‐photos.com/data/media/7/yellow‐canola‐field_4805.jpg Page 111
Photo 7 ‐ http://2.bp.blogspot.com/_Hl8iJIhNXjo/SG7j‐5WaFEI/AAAAAAAABIU/wK81dgU3zJk/s400/P1030863.JPG Page 112
Photo 8 – http://www.omafra.gov.on.ca/english/crops/field/news/croppest/2007/05cpo07a3f1.jpg Page 114
Photo 9 ‐ http://www.treehugger.com/20090501‐corn‐field.jpg Page 114
Photo 10 – Planscape Inc. Page 117
Photo 11 ‐ http://knowledge.allianz.com/nopi_downloads/images/corn_ethanol_z_1.jpg Page 118
Photo 12 ‐ http://www.assensus.org/images/20080730123843_summer_heat_over_a_grain_field.jpg Page 118

Chapter 7
Photo 2 ‐ http://www.dominionpaper.ca/img/environment/biodiesel.jpg Page 122
Photo 3 ‐ http://cache.boston.com/universal/site_graphics/blogs/bigpicture/autumn_10_15/aut29_16621919.jpg Page 123
Photo 4 ‐ http://www.salientia.ca/eva/wp‐content/uploads/2007/07/wheatfield_stjacobs.JPG Page 126

Executive Summary
Photo 1 ‐ www.redwheat.com/images/barley_field.gif ‐ Page i
Photo 2 ‐ http://farm4.static.flickr.com/3344/3526644868_b5789f1d9a.jpg?v=0 Page iii
Photo 3 ‐ www.pbase.com/merriwolf/image/83441341 ‐ Page iv

XX ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
FiIGURE SOURCE LIST

Figure 1a – Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 1b ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 2a ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE


Figure 2c – www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; OMAFRA Sources:
Statistics Canada, 2006 Census of Agriculture; Statistics Canada, Field Crop Reporting Series (Catalogue No. 22‐002‐XB); Agricorp and
Economic Development Policy Branch.

Figure 3 ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 4a ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE


Figure 4c ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 4d ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 4e ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 4f ‐ Statistics Canada – Selected Historical Data from the Census of Agriculture – Catalogue No. 95‐632‐XWE

Figure 5 – Statistics Canada, Census of Agriculture, 1951 to 2006

Figure 6 – Statistics Canada, Census of Agriculture, 1976 to 2006

Figure 7 – Statistics Canada, Census of Agriculture, 2007

Figure 8 – www.ontariocorn.org/classroom/products.html ‐ Education ‐ A Zillion Uses For Corn

Figure 9 – Farm Cash Receipts – Agriculture Economic Statistics, November 2008, Statistics Canada – Catalogue Number 21‐011‐X.

Figure 10a – www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs

Figure 10b ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs

Figure 11a ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs

Figure 11b ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; OMAFRA Sources:

PLANSCAPE INC. xxi
Figure 11c ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; OMAFRA Sources:

Figure 12a, b, c ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; Historical
Provincial Estimates by Crop, 1981 – 2004

Figure 13a, b, c ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; Historical
Provincial Estimates by Crop, 1981 – 2004

Figure 14a, b – OMAFRA Prices of Specified Field Crops, Ontario, 2006; www.omafra.gov.on.ca/crops/index.html ‐ Field Crop Prices, by
Crop Year, Ontario, 1981 – 2007

Figure 15 – Statistics Canada – 2006 Census of Agriculture

Figure 16 ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs; OMAFRA Sources:


Figures 18a – k ‐ Note: Area figures appearing in OMAFRA Data are based on results from the 2006 Census of Agriculture; OMAFRA
Sources – Statistics Canada, 2006 Census of Agriculture, Statistics Canada, Field Crop Reporting Series (Catalogue No. 22‐002‐XIB);
Agricorp; and Economic Development Policy Branch; www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture
Food & Rural Affairs.
Figure 19 – Statistics Canada – Census of Agriculture.

Economic Development Policy Branch. – Please see Appendix A4

Economic Development Policy Branch. – Please see Appendix A4

Figure 22 ‐ OMAFRA Estimated Area, Yield, Production and Farm Value of Specified Field Crops, Ontario, 2006;
www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs.
Figure 23 – OMAFRA – Estimated Farm Value of Specified Field Crops, Ontario 2001 – 2007

Figure 24 ‐ OMAFRA – Estimated Farm Value of Specified Field Crops, Ontario 2001 – 2007

Figure 25 ‐ OMAFRA – Estimated Farm Value of Specified Field Crops, Ontario 2001 – 2007

Figure 26 – Statistics Canada – Farm Cash Receipts, Agriculture Economic Statistics – November 2008, Catalogue No. 21‐011‐X.

Figure 27 – Statistics Canada – Farm Cash Receipts, Agriculture Economic Statistics – November 2008, Catalogue No. 21‐011‐X.
OMAFRA Estimated Farm Value of Specified Field Crops, Ontario 2001 – 2007
XXII ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
Figure 28 – Statistics Canada, Census of Agriculture, 1976 – 2006

Figure 29 – Statistics Canada, Census of Agriculture, 1976 – 2006

Figure 30 – Statistics Canada, Farm Cash Receipts ‐ Agriculture Economic Statistics, 2007

Figure 31 – Statistics Canada, Farm Cash Receipts – Agriculture Economic Statistics, Catalogue No. 21‐011‐X

Figure 32 – OMAFRA Estimated Area, Yield Production and Farm Value of Specified Field Crops, Ontario 2006,
www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs.

Figure 33 – Industry Canada – Strategis – www.ic.gc.ca – Trade By Industry (NAICS Codes) NAICS Codes 1111 – Oilseed and Grain
Farming

Farming

Farming

Figure 36 ‐ Industry Canada – Strategis – www.ic.gc.ca – Trade By Industry (NAICS Codes) NAICS Codes 1111 – Oilseed and Grain
Farming

Farming

Farming

Farming

Farming

Farming

Farming

Figure 43 – Ontario’s Wheat Industry with Direct Marketing – Economics & Competitiveness – Alberta Agriculture, Food and Rural
Development

Farming

Farming

PLANSCAPE INC. xxiii
Figure 46 ‐ ‐ Industry Canada – Strategis – www.ic.gc.ca – Trade By Industry (NAICS Codes) NAICS Codes 1111 – Oilseed and Grain
Farming

Figure 47 ‐ ‐ Industry Canada – Strategis – www.ic.gc.ca – Trade By Industry (NAICS Codes) NAICS Codes 1111 – Oilseed and Grain
Farming
Figure 48 – Overview of Bean Markets – www.saskpulse.com/media/pdfs/market‐overview‐bean.pdf

Figure 49 – OMAFRA Estimated Farm Value of Specified Field Crops, Statistics Canada Farm Cash Receipts, Ontario 2007

Figure 58 – An Overview of the Canadian Agriculture and Agri‐Food System, Agriculture and Agri‐Food Canada, 2008, page 72

Figure 59 – Canadian Agri‐Food Trade Alliance. www.cafta.org

Figure 60 ‐ Canadian Agri‐Food Trade Alliance. www.cafta.org

Figure 61 – An Overview of the Canadian Agriculture and Agri‐Food System, Agriculture and Agri‐Food Canada, 2008

Figure 62 ‐ Ministry of Agriculture‐ Food & Rural Affairs – Estimated Area, Yield, Production and Farm Value of Specified Crops, Ontario
2001 – 2008 – www.omafra.gov.on.ca/english/stats/crops/estimates_imperial.htm; United States Department of Agriculture –
Economic Research Service – The Economics of Food, Farming, Natural Resources, and Rural America – www.ers.usda.org/StateFacts ‐
New York, Ohio, Michigan and Pennsylvania.


Figure 66 – Statistics Canada and AAFC Calculations.

Figure 67 ‐ Statistics Canada and AAFC Calculations. – Excludes beverages and tobacco processing. The contribution of P.E.I. and N.B. is
an AAFC Estimate.

Figure 68 – Statistics Canada and AAFC Calculations.

Figure 69 – An Overview of the Canadian Agriculture and Agri‐Food System. Agriculture and Agri‐Food Canada, 2006.

Figure 70 ‐ An Overview of the Canadian Agriculture and Agri‐Food System. Agriculture and Agri‐Food Canada. May 2006. pp.86.

Figure 71 – ADM – www.admworld.com/naen

Figure 72 – ADM – www.admworld.com/naen/
XXIV ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009
Figure 73 – ADM – www.admworld.com/naen/

Figure 74 – OMAFRA, April 2006.

Figure 75 – Farm Credit Canada – Fall 2008 Farmland Values Report – www.fcc‐fac.ca/en/Products/FLV/Fall2008/index.asp

Figure 76 ‐ Farm Credit Canada – Fall 2008 Farmland Values Report – www.fcc‐fac.ca/en/Products/FLV/Fall2008/index.

Figure 77 –

Figure 78 ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs

Figure 79 ‐ www.omafra.gov.on.ca/english/stats/crops/index.html ‐ Ministry of Agriculture Food & Rural Affairs
Figure 80 – AAFC
Figure 81 ‐ Source: Measuring the Farm Income Crisis – Revised 2007 –
www.cfa‐fca.ca/upload/Measuring%20the%20Farm%20Income%20Crisis%20General%20(March,%202007).pdf
Figure 82 – Statistics Canada
Figure 83 – Statistics Canada and AAFC Calculations – 2008 Figures forecasted.
Figure 84 ‐ Statistics Canada – Farm Financial Survey, 2007 – Catalogue No. 21F0008XIE – pp. 67
Figure 85 ‐ Statistics Canada – Farm Financial Survey, 2007 – Catalogue No. 21F0008XIE – pp. 67.
Figure 86 – IMF and AAFC Calculations

Figure 87 – Statistics Canada, Annual Survey of Manufacturers – Includes Material Costs and Wages

Figure 88 – Statistics Canada and AAFC Calculations

Figure 89 – Statistics Canada, Field Crop Reporting Series 1997 – 2005

Figure 90 – Statistics Canada, OECD and AAFC Calculations

Figure 91 ‐ Canadian Agri‐Food Trade Alliance www.cafta.org
Figure 94 – Statistics Canada, Crop Statistics, USDA, National Agricultural Statistics.

Figure 95 ‐ OMAFRA – Historical Provincial Estimates by Crop, 1981 – 2004. www.omafra.gov.on.ca/english/stats/crops/index.html ‐
Ministry of Agriculture Food & Rural Affairs

Figure 97 ‐ Statistics Canada, Farm Financial Survey, 2004

Figure 98 ‐ Statistics Canada, Farm Financial Survey, 2004

Figure 99 ‐ Statistics Canada, Farm Financial Survey,1997 and 2004

Figure 100 – Global Trade Atlas and AAFC Calculations

Figure 101 – Global Trade Atlas and AAFC Calculations
PLANSCAPE INC. xxv
Figure 102 – Statistics Canada and AAFC Calculations

Figure 103 – American Farm Bureau
Figure 104 – Euromonitor 2007

Figure 105 – Organic Agricultural Centre of Canada (OACC) “Retail Sales of Certified Organic Food Products in Canada”

Figure 106 – AAFC

XXVI ONTARIO GRAINS & OILSEEDS – VALUE CHAIN STUDY July 8, 2009

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