The Farm Share in Canada from 1997 to 2010: Identifying Trends in Value Distribution Along the Agri-Food Supply Chain

Kelly, Jessica
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University of Guelph

The farm share is the average portion from each dollar of expenditure on food that is received by farmers for their agricultural commodities. Variation in the farm share could reflect regular fluctuations in margins and asymmetric supply elasticities or be indicative of larger sustained trends such as the existence of market power or changing customer preferences. This thesis is an investigation of the Canadian farm share from 1997 to 2010, using input-output techniques that were developed by the Economic Research Service. Results show that the Canadian farm share decreased about 0.20% annually over this period, similar to results for the United States. Decomposition of these farm share results reveals that the farm share measure varies greatly across food commodities. Simulations show that rises in the value-added cost of corn, energy, and farm labour all result in an increase to the farm share.

Farm share, Food dollar