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A FOOTHOLD FOR YOUNG FARMERS

ALBERTA GRAINS EXAMINES FARM SUCCESSION BARRIERS AND SOLUTIONS

BY SELENA GRUTTERINK

Canadian agriculture faces one of the biggest farm transitions in history. Nearly 40 per cent of farmers are expected to retire over the next decade. In Alberta, it’s closer to 62 per cent. The province’s farms are predominantly family owned and operated. Unfortunately, the number of young people taking up the family business is declining. Beyond succession planning, there is a need to identify and evaluate barriers to the family farm transition process.

An Alberta Grains report to be released in early 2026 explores this issue with input from farmers, agri-business professionals and policy-makers. It identifies existing farm transition resources as well as policy, regulatory and program barriers. For policy-makers, it also provides recommendations and potential solutions. Some of the challenges discussed in the report include the high cost of land, complexity of the transition process, heavy capital requirements and the need for policy stability.

“Strengthening policy and program pathways for young farmers to enter and remain in the industry is essential not only for the continuity of family operations, but for the long-term resilience of Alberta’s ag sector,” said Shannon Sereda, director of government relations, policy and markets for Alberta Grains.

Just 38 per cent of Alberta farmers are under the age of 54, which is far too few to sustain current production levels. This gap indicates the industry will require new entrants or face farm consolidation. However, new farmers face significant risks with limited financial return. In 2021, the average Albertan aged 25 to 54 earned $76,800, yet 70 per cent of all farmers, and 65 per cent of oilseed and grain farmers, earned less. As farmers take on ever-greater debt, their ability to repay it diminishes as profit margins tighten.

Despite these challenges, agriculture has inherent appeal, such as being one’s own boss. Farming also provides personal identity and the rewarding purpose of contributing to global food security. While there is strong interest among those raised on farms in pursuing agriculture as a career, young farmers face barriers such as high debt and land prices as well as surging input costs.

The problem is cyclical. Steep barriers discourage successors, and farms without them are typically sold to the highest bidder. This drives farm consolidation, which further limits the ability of new entrants to compete. If it continues, barriers to entry will only become steeper. More broadly, consolidation threatens the fabric of rural life as the population thins.

The need to help young farmers gain a foothold in this competitive industry is urgent. We risk losing operations that are focused on tradition, community and sustainability to ones that are solely profit driven.

“In small towns like ours, most people make a living farming, teaching, running small businesses or working in energy or health care—if the town is big enough to have a hospital,” said Harvey Hagman, Mayerthorpe area farmer and Alberta Grains region 5 director. “Energy projects end, businesses close, schools shrink, but farming has always been there keeping these communities alive.”

The viability of rural communities is ultimately dependent on farming. Family farms anchor local services and civic life, and strong communities support the next generation of farmers. Support for family farm transition is, at its core, rural economic policy and essential to the resilience of rural Alberta.

Following the release of its report, Alberta Grains will continue to collaborate with stakeholders and identify partners to support farm transition, said Sereda.

Selena Grutterink is a policy and stakeholder engagement analyst for Alberta Grains.

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