Farm Succession Conference 2002
Quebec farms in healthy position for succession
By: Diane Parent and Elizabeth Ouellet
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While many
older farmers around the world have nobody to take
over their farms, census figures show Quebec farms
are in "good shape" for succession.
Analysis of the 1996 census shows that the
replacement rate, or the percentage of farmers 34
years old and under divided by those 55 and over,
was 89.6 per cent. That compares to 49.1 per cent
for all of Canada, 42.1 per cent in the U.S. and
only 14.1 per cent in Europe.
Elizabeth Ouellet of Laval University in Quebec,
a member of the University's Agri-Gestion Group
dedicated to the improvement of agricultural management,
said the provincial agriculture department estimates
850 farms could be sold or handed down each year
in Quebec and succession is not a major problem.
While she admits succession is still "fragile"
in Quebec due to rising debts especially in the
dairy and pork sectors, more young people in Quebec
have plans to take over the family farm thanks in
large part to unique programs and resources in Quebec.
Government grants of up to $30,000 payable over
4 years for the purchase of buildings and other
acquisitions help encourage young farmers. (France,
Denmark and Greece are among European countries
that offer similar grants for new farmers).
There's also counselling and training available
from a government supported agency called the Resource
Centre for Farm Establishment (Centre de ressources
pour l'établissement en agriculture) and
30 "agricultural management pools" where
farmers can network with each other.
Recent survey shows successors
are prepared
A recent survey of 114 farm teams (with a successor
and current owner) in Quebec shows that 75 per cent
of the successor respondents appear to be well or
very well prepared to take over the farm.
Laval University Professor Diane Parent says one
of the main reasons is that both sides agree more
often than they disagree on the running of the business.
In fact, 56 per cent gave the same responses to
a series of questions covering management responsibilities
such as recruiting and screening casual employees
and negotiating credit and funding.
While she admitted the study is limited and is not
necessarily an accurate reflection of all farm ownership
teams, professor Parent said it does demonstrate
the importance of communication for a smooth transition.
Diane Parent,
Laval University
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