Non Partisan Association

Alberta's agricultural sector faces interconnected challenges that affect farm viability, rural community sustainability, and the province's long-term food security. Understanding these challenges is essential to developing effective policy responses.

Market and Price Risk

Agricultural commodity prices exhibit significant volatility driven by factors largely beyond individual farmer control:

Price Driver	Impact Mechanism
Global Supply/Demand	Production elsewhere affects Alberta commodity prices
Currency Exchange	Canadian dollar strength affects export competitiveness
Trade Policy	Tariffs and trade agreements alter market access
Weather Events	Drought or flooding in other regions shifts global prices
Input Costs	Fertilizer, fuel, equipment costs squeeze margins

Farmers operate as price-takers in global markets, with limited ability to pass increased costs to buyers. This structural asymmetry creates ongoing financial pressure, particularly during periods of low commodity prices.

Climate and Weather Risk

Agriculture is inherently exposed to climate variability, with climate change intensifying both the frequency and severity of adverse events:

• Drought: Reduces crop yields and grazing capacity, straining water resources
• Excess Moisture: Delays planting, reduces yields, increases disease pressure
• Extreme Events: Hail, frost, and unseasonable temperatures damage crops and livestock
• Pest Pressure: Changing conditions affect pest and disease dynamics

Adaptation requires investment in irrigation, crop diversification, and management practices—costs that compound other financial pressures.

Structural and Generational Challenges

Farm consolidation trends create systemic challenges for sector renewal:

• Capital Barriers: High land values require substantial capital for farm entry or expansion
• Succession Planning: Aging farmer population without clear succession pathways
• Rural Depopulation: Declining farm numbers affect community services and viability
• Knowledge Transfer: Expertise loss as experienced farmers exit without successors

Environmental Sustainability

Agricultural operations must balance productivity with environmental stewardship:

• Water Resources: Competition for water, particularly in irrigation-dependent regions
• Soil Health: Maintaining long-term productivity while meeting production demands
• Biodiversity: Habitat preservation alongside agricultural land use
• Regulatory Compliance: Meeting environmental standards while maintaining competitiveness

Effective policy must address these interconnected challenges through coordinated risk management, infrastructure investment, and support for sustainable practices that maintain both farm viability and environmental health.