Thank you, Mr. Chair and committee members, for the opportunity to appear today to discuss the intergenerational transfer of farms and new entrants.

My name is Allan Melvin. I am the president of the Nova Scotia Federation of Agriculture and a sixth-generation vegetable farmer based in the Annapolis Valley. Since 1895, the Nova Scotia Federation of Agriculture has represented Nova Scotia farmers, covering more than 90% of the province's agricultural production.

The challenges surrounding intergenerational transfer and attracting new entrants are significant in Nova Scotia. Our province is home to rich, productive agricultural lands that have been sustainably farmed, protected and improved over generations. Maintaining and expanding our food production depend on the ability of the next generation to take up and continue this work.

Unfortunately, our industry does not feel prepared for this transition. The average age of farmers in Nova Scotia is almost 59—the highest average in Canada—and 62% of farms report a need to transition within the next decade. Over the winter of 2024, the NSFA conducted a survey among members to gauge the state of succession planning. The results were concerning, with only 8% of farmers currently having a detailed succession plan in place. Succession challenges in agriculture create unique vulnerabilities, with potential impacts on rural economies and food security. Addressing these challenges is not about finding one solution. It will require a multi-faceted approach of innovative thinking and collaboration with industry.

Supporting these transitions is increasingly urgent, as the agriculture industry faces uncertainty in attracting new entrants. In Nova Scotia, the NSFA has been calling for the return of a land bank program, which would support both farm transitions and new entrants. Land banks are designed to support economic growth by providing flexible financing options and connecting aspiring farmers to farmland. This can be part of the solution that will allow farmers to retire with dignity and enable the successful entry of the next generation.

The financial barriers to entry into farming have become a critical issue. Between 2010 and 2023, the average value of farmland in Nova Scotia has more than doubled, from $1,663 per acre to $3,912 per acre, with some of our most productive land reaching up to $20,000 per acre. Prices continue to be driven up by development pressures and a trend towards land being used as an investment vehicle. This rise has made it increasingly difficult for aspiring farmers to afford land. Many families face situations in which children have pursued different careers, leaving farms without a successor. For these farms, finding a successor is not just a matter of business. It is about maintaining the economic capacity and vibrancy of rural communities.

Another significant barrier for new entrants is a lack of adequate business risk management programs. Today's new farmers must contend with much higher debt loads earlier in their careers, and this challenge is compounded by increasingly unpredictable weather patterns. The current business risk management programs under SCAP do not meet the needs of modern farming. They do not provide sufficient financial stability to offset the risks associated with a changing climate. They particularly struggle to meet the needs of Nova Scotia farms, which are diverse in size and often produce multiple commodities. The frequency and severity of extreme weather events—from hurricanes like Fiona to unprecedented summer rainfalls causing significant floods—have added to the stress of operating a farm. For many young farmers, the prospect of entering such a volatile industry without strong risk management is daunting. This lack of comprehensive support means many will not consider farming as a viable career path. Improved business risk management is critical for new entrants, who are carrying significant debt loads to acquire their farms.

Another area of concern is the rising tax burden on farms. Taxes can impact the day-to-day operations, succession planning and overall financial health in ways few other costs do. The budget 2024 changes to capital gains that came into effect in June have created complications for farmers who are actively involved in the succession planning process. Farm transitions require years of planning, involving legal, financial and family considerations. With 62% of farms in Nova Scotia set to transition or retire in the next decade, this sudden shift adds another layer of difficulty to the industry's efforts to find new entrants and maintain the rural fabric and resilience that come with family farming transitions.

In closing, I would like to thank the committee again for inviting us here to discuss these issues. The intergenerational transfer of farms and the need to attract new entrants are critical challenges facing our industry. As we work towards solutions, it is essential that we address these barriers to ensure that Nova Scotia's agricultural future remains strong and resilient.

Thank you.