ABBOTSFORD, BC – September 14, 2026: Growing structural cost disadvantages are making it increasingly difficult for many British Columbia (B.C.) farms to invest, expand, and remain competitive according to a new University of the Fraser Valley (UFV) report released today. While Statistics Canada reported a $457-million net loss for B.C.’s agricultural sector last year, the report finds the province’s roughly 4,100 commercial farms actually generated a combined $770-million operating surplus – a reversal that masks a deeper problem. The research identifies declining financial resilience, particularly among mid-sized commercial farms, as one of the most significant long-term risks facing B.C. agriculture.

Prepared by University of the Fraser Valley agriculture professor Dr. Chris Bodnar, Farming at the Edge: The Financial Health of British Columbia’s Commercial Agricultural Sector finds that B.C. farms face higher feed, labour, land, rent, and financing costs than many competitors across Canada. While the sector continues to generate positive operating income, that income masks a deeper vulnerability: B.C.’s commercial farms carry the fastest-growing farm debt of any province in Canada and less financial resilience than any other major agricultural jurisdiction, limiting their capacity to invest, expand, or absorb cost increases.

The report highlights a growing “missing middle” of approximately 1,150 commercial farms with annual revenues between $500,000 and $2 million. These farms are often best positioned to invest, adopt new technologies, increase production, and support farm succession, yet they face some of the greatest competitive challenges in the sector. While this revenue tier grew by nearly 40% across Canada over the past decade, the number of B.C. farms in this range stayed essentially flat.

“Much of the public discussion about agriculture relies on aggregate statistics that can mask what is happening on commercial farms,” said Bodnar. “What we found is a sector that remains productive and innovative, but one that operates with less financial resilience than other provinces across Canada. Farm debt in BC has grown 286% since 2004 – faster than in any other province – and we are now the only major agricultural province without our own agricultural lending institution. The greatest concern is the growing pressure on mid-sized commercial farms that are critical to the future growth of B.C. agriculture.”

“The findings provide factual validation to the challenges producers have been raising for years about the unique and increased cost pressures in British Columbia,” said Danielle Synotte, Executive Director of BC Agriculture Council. “This report demonstrates that B.C. agriculture remains a strong economic sector, but continued action is needed to improve competitiveness and create conditions for farms to invest, grow, and succeed. Many of the solutions identified align with recommendations already put forward by the Premier’s Task Force on Agriculture and Food Economy.”

“Competitive farms are essential to a strong and resilient food system,” said Jeremy Dunn, General Manager of BC Dairy. “When farms can invest, innovate, and plan for the future, the benefits extend beyond the farm gate to food production, economic growth, and communities across British Columbia. This report provides practical, evidence-based recommendations to help achieve that goal.”

Among its recommendations, the report calls for a new tiered farm classification system that would distinguish between sub-commercial, commercial, and large commercial farms. According to the report, better classification would provide a more accurate picture of B.C. agriculture, help policymakers target support more effectively, and ensure public discussions about the sector are based on the realities facing commercial farm businesses.

Additional recommendations focus on improving agricultural competitiveness through business risk management reform, expansion of agricultural financing options, labour supports, technology adoption, feed-cost competitiveness measures, and farmland preservation.

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Media Contacts:

BC Agriculture Council

Ursula Klein: communications@bcac.ca

BC Dairy

Noah Wiseman: publicaffairs@bcdairy.ca

Supporting Resources: https://farmingattheedge.ca/

About BC Agriculture Council: BCAC’s mission is to support and grow a competitive agriculture sector by fostering industry collaboration and shaping effective public policy. This is achieved by delivering a unified voice for the sector to government through member farm associations that in turn represent approximately 96% of provincial farm gate sales.

About BC Dairy: BC Dairy is a not-for-profit association representing BC’s dairy farmers, who produce safe, high-quality dairy on local farms to help nourish families across the province. BC Dairy also brings dairy farmers together to collaborate and build lasting relationships within their communities. BC’s dairy farmers believe that giving back goes a long way and proudly support organizations across the province that help British Columbians thrive.