The document summarizes challenges facing the agriculture sector including high costs of fertilizer, fuel and food production. It also notes sluggish equipment sales recently. Farmers are dealing with risks from volatile commodity prices and weather conditions. Both Canada and the US continue working to improve food security and affordability as food processors also battle rising costs. The agriculture industry needs cooperation across levels of government and countries to address issues exacerbated by global events.

1. Agriculture
Equipment Sector –
Analysis and
Commentary
PAUL YOUNG CPA CGA
MARCH 11, 2022

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
 North American AG Equipment Sales
 Commodity Prices
 AG Prices – Canada
 Preliminary Crop Estimates – Canada
 Oilseeds
 Energy Prices
 Carbon Tax
 Food Prices
 Hospitality Sector
 Farming Income
 Top Farming States
 Food Processors
 Technology and Farming
 Government and Farming
 Debt
 Summary

4. North American Equipment Sales
Source - https://www.aem.org/Market-Data/
US-Month-Ag-Report
-2-2022.pdf
CAN-Month-Ag-Repo
rt-2-2022.pdf

5. Commodity
Prices
SOURCE -
HTTPS://WWW.WORLDBANK.O
RG/EN/RESEARCH/COMMODIT
Y-MARKETS
CMO-Pink-Sheet-Mar
ch-2022.pdf

6. Commodity
Prices
Source – Scotiabank
BNS_Commodities.pd
f

7. Carbon Tax – Canada
 Carbon Tax / Farmers – Wheat Farmers - https://wheatgrowers.ca/
 Greenhouse growers / Carbon Tax Exemptions - https://www.greenhousecanada.com/bc-greenhouse-
growers-get-permanent-carbon-tax-relief-20363/
 Grain Dryer - https://www.world-grain.com/articles/13262-canadas-grain-dryer-program-tackles-
efficiency
 Carbon Tax hike? - https://www.sherwoodparknews.com/opinion/editorials/editorial-liberals-mum-on-
hiking-carbon-taxes/wcm/a55ed40c-d289-4023-802b-4d2a1335cdc5

8. Hospitality Sector
Blog – Food Services and Hospitality Sector – Canada and the World – August 2021
The food and beverage sector continue to face many challenges.
https://www.slideshare.net/paulyoungcga/hospitality-and-food-service-sector-canada-august-2021

9. Blog – Food Prices
Blog - With Demand Soaring, Booming Food Sector Turns to Food Contract Manufacturing
As demand for food products increases nationwide, businesses are frequently turning to food contract
manufacturing companies to meet that increased need rather than adding additional capacity internally.
Anticipating that demand will eventually return to normal levels, food producers can work with an experienced
co-packer to enhance their operational efficiency without needing to make substantial asset or equipment
investments in-house that may sit unused later on.
Sourcing for food contract manufacturing on the Thomasnet.com platform is up 133% year over year and up
277% over last quarter averages.
Source - https://www.thomasnet.com/insights/with-demand-soaring-booming-food-sector-turns-to-food-contract-
manufacturing/?ecms_id=03a9e6f7-1a59-4bb8-88af-
2bd41a26780d&ecms_short=ART5898&doc_type=ted_video_article&parent_id=8250e2ab-aea8-49ec-ad90-
fe73f30b2122&utm_content=featuredvideo&linktype=title&channel=email&campaign_type=thomas_industry_update&ca
mpaign_name=tiu211004&utm_campaign=tiu211004&utm_medium=email&utm_source=thomas_industry_update&tinid
=221763045
My work - https://www.slideshare.net/paulyoungcga/food-and-beverage-analysis-and-commentary

10. Farm Income
 Farming Income in Canada has been struggling for the past few years -
https://www150.statcan.gc.ca/n1/daily-quotidien/191126/dq191126b-eng.htm
 USA farm income and aid - https://www.agriculture.com/markets/newswire/us-farm-income-expected-to-
rise-in-2019-but-only-because-of-government-aid
 AG subsidies - https://www.agriculture.com/news/business/world-farm-subsidies-hit-2-billion-a-day
 Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (8.1 percent) to $111.4
billion in 2021. In inflation-adjusted 2021 dollars, net farm income is forecast to decrease $12 billion (9.7
percent) in 2021 after increasing $37.8 billion (44.2 percent) in 2020 to its highest level since 2013. Despite
this decline, 2021 net farm income would be 21 percent above its 2000-19 average of $92.1 billion.
https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-
income-forecast/

11. Canada
and Farm
Receipts
SOURCE – STATS CANADA
Farm Income -
202109.pdf

12. Farm Receipts
Source – Stats Canada

13. Top Farming States
Source - https://www.statista.com/statistics/196114/top-10-us-states-by-number-of-farms/

14. Food Processors
 Source - www.fao.org or https://www.globenewswire.com/news-release/2019/09/04/1910664/0/en/Food-Processing-Market-to-Exceed-4-Trillion-
by-2024-Key-Trends-Analysis-Opportunities-to-Succeed.html

15. Plastic Greenhouses / CO2
 35% of China’s vegetables come from plastic green houses -
https://www.nextbigfuture.com/2021/03/plastic-greenhouses-provide-35-of-chinas-vegetables.html
 Greenhouse farming - https://gulfnews.com/uae/environment/popularity-of-greenhouse-farming-
options-on-the-rise-1.842642
 South Korea - https://www.hortidaily.com/article/9306173/overview-vegetable-horticulture-in-south-
korea/
 Global Market - https://www.databridgemarketresearch.com/reports/global-plastic-greenhouse-
market
 Ontario/Greenhouses - https://windsor.ctvnews.ca/ontario-government-investing-3-6-million-toward-
innovation-projects-in-the-greenhouse-sector-1.5285128
 NZ and the Middle East - https://www.freshplaza.com/article/9307955/new-zealand-has-a-huge-tech-
opportunity-in-the-middle-east-s-growing-horticulture-industry/

16. Technology and Farming
 AI is transforming farming - https://www.forbes.com/sites/cognitiveworld/2019/07/05/how-ai-is-transforming-
agriculture/#1fa34bec4ad1
 AI and farming - https://customerthink.com/the-role-of-artificial-intelligence-in-agriculture-sector/
 IBM and farming - https://farmtario.com/news/ibm-expands-artificial-intelligence-platform-into-agriculture/
 RPA and Farming - https://blog.accubits.com/robotic-process-automation-in-agribusiness/
 IBM and Expert Farming - https://www.prnewswire.com/news-releases/farmplan-using-ibm-pairs-to-predict-blackgrass-
weed-before-it-damages-crops-301151067.html
 AG App - https://www.techrepublic.com/article/farming-assistant-app-agrolly-wins-ibms-call-for-code-contest/
 Smart farming - https://farmingfirst.org/2020/10/transforming-agriculture-through-smart-farming-from-data-ownership-
to-open-data/
 Telecom/Farming - https://ca.finance.yahoo.com/news/agriculture-analytics-market-reach-2-133100885.html
 Blockchain and Food Protection - https://blog.trustbix.com/how-blockchain-can-support-food-supply-chain-management

17. Government / Farming
 Elimination of trade barriers - https://www.slideshare.net/paulyoungcga/what-is-next-for-for-global-
trade-protectionism
 More emphasis on local supply chain management solutions -
https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
 Tax fairness and regulatory reforms - https://www.slideshare.net/paulyoungcga/does-the-world-need-
a-wealth-tax
 Government provides direct subsidies and/or loans to farmers
 Government needs to revisit all their programs to ensure various programs are efficient and effective -
https://www.slideshare.net/paulyoungcga/market-food-protein-market-analysis-and-commentary or
https://www.oag-bvg.gc.ca/internet/English/parl_lpt_e_934.html or https://thetyee.ca/Opinion/2016/03/08/BC-
Carbon-Tax-Failure/
 Automation can help with automation of audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-
performance-base-auditing

18. Farm Debt
Source -
https://www.portageonline.c
om/ag/agriculture-news-
mb/fcc-economist-says-
farm-debt-under-control-
watch-for-higher-interest-
rates

19. USA Farm Debt
Source -
https://farmpolicynews.illinoi
s.edu/2021/06/farm-lending-
remains-strong-in-2020-
american-bankers-
association-report/

20. Summary
 All levels of government need to work together to better support the agriculture
and food processing sector
 The world needs to unite to fixed issues with WTO
 More balanced between environmental and economic policies.
Blog – Agriculture Equipment and Food Production – Canada and the World
RUSSIA-January-2022
-Ag-Tractor-Combine.pdf
US-Month-Ag-Report
-2-2022.pdf
CAN-Month-Ag-Repo
rt-2-2022.pdf
CMO-Pink-Sheet-Mar
ch-2022.pdf
BNS_Commodities.pd
f
Oregon’s $5 billion
agriculture industry struggles with rising gas prices Malheur Enterprise.pdf
Saskatchewan
farmers in for high risk, but potentially profitable year Regina Leader Post.pdf
Grains edge higher
as hopes for Black Sea ceasefire fade Farm Progress.pdf
'Extreme urgency'
required from Government over soaring costs of food production, NFU boss warns Yorkshire Post.pdf
Surging gas prices
could be another drag on food delivery.pdf
A restaurant’s COVID
fight $15,000, 4 filters, one CO2 monitor The Star.pdf
Food & Beverages
Industry Pumps Market worth $12.9 Billion by 20 -.pdf
Global events may
slow domestic organic market growth Food Business News.pdf
Fertilizer prices set
for new jump The Western Producer.pdf
What role will vertical
farming play in the future of agriculture HLB.pdf
AGI Reports 2021
Sales Up 20% to $1.2 Billion.pdf
Farmer’s Deadline
Fast Approaching for Cover Crop Subsidy.pdf
Huge increase in
fertilizer price impacting local farmers - EloraFergusToday.com.pdf
High diesel costs
worry farmers with crop season on the horizon Mid-Missouri News komu.com.pdf
Summary:
Farmers are facing many challenges like high diesel and fertilizer costs -
https://www.elorafergustoday.com/local-news/huge-increase-in-fertilizer-price-impacting-local-
farmers-5143743 or https://www.komu.com/news/midmissourinews/high-diesel-costs-worry-farmers-
with-crop-season-on-the-horizon/article_3a46aca4-a0a4-11ec-a59d-6bd6d6bf7936.html
Agriculture equipment sales have been sluggish the past four months.
Both Canada and USA continue to struggle to address food security and the high cost of food
1. Agriculture prices - https://www.malheurenterprise.com/posts/9484/oregons-5-billion-
agriculture-industry-struggles-with-rising-gas-prices
2. Saskatchewan farmers - https://leaderpost.com/business/agriculture/saskatchewan-farmers-in-
for-high-risk-volatile-but-potentially-profitable-year
3. Ukraine - https://www.farmprogress.com/morning-market-review/grains-edge-higher-hopes-
black-sea-ceasefire-fade
4. Food Production - https://www.yorkshirepost.co.uk/news/politics/extreme-urgency-required-
over-soaring-costs-of-food-production-nfu-boss-warns-3606854
5. Gas prices - https://www.restaurantbusinessonline.com/operations/surging-gas-prices-could-
be-another-drag-food-delivery
6. Mitigation / disease spread - https://www.thestar.com/news/gta/2022/03/11/one-restaurants-
fight-against-covid-15000-four-filters-and-a-co2-monitor.html