Off-Farm Work by Farmers: The Importance of Rural Labour Markets

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By Alessandro Alasia and Ray D. Bollman, Statistics Canada

Highlights

  • The number of census farm operators in Canada fell approximately 16% between 1991 and 2006, while the number with off-farm work rose by 9%.

  • In 2001, among operators of very small agricultural holdings, about 60% were working off their holding. Among operators of larger census farms, about 20% were working off their holding. In 2006, the share of operators of smaller census farms reporting off-farm has remained stable while that of operators of larger census farms has further increased.

  • Both the human capital of the operator and the characteristics of the census farm are associated with the incidence of off-farm work for operators of both smaller and larger farms.

  • Family, community and regional characteristics appear more relevant in determining the joint decision to work off-farm and to operate a smaller holding.

  • Proximity to a larger urban centre does not increase the probability of the joint decision to participate in off-farm work and to operate a census farm. Hence, census farm operators are more likely to be affected by rural development initiatives that directly address the dynamics of labour markets in the community where the operator lives.