2

Volume

AGRICULTURE BUSINESS COMMUNITY

Chapters: Perth East, Perth South & Wilmot West

Community
Report
 AGRI CU L TU RE BU S I NE SS COM MU NI T Y

Submitted to Totten Sims Hubicki Associates (TSH) and the

Ministry of Transportation for the response period ending
Sept. 30th, 2008.

 Agriculture Business Community

c/o 3649 Road 107, R.R. # 2
Tavistock, ON N0B 2R0
Phone 519.655.2631 • Fax 519.273.6367
Email hwy7and8@gmail.com
A G I R C U L T U R E B U S I N E S S C O M M U N I T Y

Table of Contents
Introduction
Prologue

1. A Visitor’s View
2. Misleading Underlying Assumptions
a. Population projections as an underlying Assumption
b. Greater Stratford Area
c. When does the existing economy count?
d. Unsubstantiated Issues
e. Where is the existing community recognized?
f. We Applaud This Direction
g. Wetlands Trump Agriculture
h. Evaluation Principles Lacking

3. Provincial Legislation, Regulations and Policies Affecting Agriculture

a. Nutrient Management Act, 2002
b. Nutrient Management Strategy
c. Nutrient Management Plan (NMP), O. Reg. 267/03
d. Nutrient Management Protocol, August 12, 2005
e. Municipal Drains

4. Agribusiness in the Study Area

a. Agricultural Business in the Study Area
b. Industry Production Figures

5. The ‘Culture’ of Agriculture

a. The Land
b. The People
c. The Economy

6. Conclusions and Directions for Consulting Team and the MTO

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Introduction

Unfortunately, agriculture and impacts to it are often left

out of many equations. The agricultural business
community of the three townships decided this was not right
or fair.

T he townships of Wilmot, South Easthope and Downie are all key areas impacted by the
Highway 7 and 8 Corridor Study. During the Public Information phase (# 2) very few area
residents took advantage of the opportunity to visit the Centres and see what may be
happening for themselves. A variety of reasons were the root causes of such seeming
disinterest. The meeting times set for these information meetings were NOT appropriate for the
rural community and farmers in particular. As well many in the community felt for the past
number of years that something had to be done about the old highway and assumed it would be
confined to the area already reserved for highway widening, since the Ministry of Transportation
purchased land and moved homes many years ago for this purpose.

Some residents managed to attend the PIC’s and discovered the scope of the apparent plan. They
took action, called a meeting of residents in the middle of the busy summer season and had 155
people show up to hear about what might be happening. The group met and formalized into the
Agricultural Business Community of Perth East, the Agricultural Business Community of Perth
South and the Agricultural Business Community of Wilmot West.

Each group decided on their focus, chose representative names, found volunteers in the
community and began its work. Since that point, more and more residents in all three townships
have joined their respective chapters. The ability to get information to members quickly was
established via email. Other community meetings were organized and over 300 area residents
and businesses are now part of these growing community organizations.

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Prologue

T he Agricultural Business Community of Perth East, the Agricultural Business

Community of Perth South and the Agricultural Business Community of Wilmot
believe the nature of the Agricultural Sector within the study area is seriously
misrepresented in the consultant reports. The criteria used as the foundation in the
decision making model to determine the proposed corridor options is therefore inadequate
and inaccurate.

We understand the study process moves from a more general level of information to more
specific detail as the preferred corridor is chosen and the route selected. However, the
beginning of the study is the time when fundamental planning principles and guidelines
should be identified. These principles lay the foundation for the entire planning process. An
accurate understanding of the study area is required to do this.

The community has come together using information collected from the agricultural
producers, members of the community, Statistics Canada data, official plans, agricultural
organizations and provincial legislation and regulations to present a more transparent
understanding of the resources of the study area. Much of this was available to the
consulting team in the development of the first round of reports.

The founding legislative and policy guidelines must be applicable to the area under study.
Due to the significance of agriculture within the study area and its Provincial if not National
significance, several key pieces of legislation governing the practice of farming are absent
from the reports. These should have been recognized in the early identification of study
principles and foundation documents that the study builds on. This is a major shortcoming
and leads to an almost complete misunderstanding and misrepresentation of the resources
and community within the study area.

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We believe there are three distinct areas of investigation to be addressed under the broad
heading of Agriculture. Agricultural land capability, the consultant has recognized,
agricultural business which is completely missing and agri-culture, which has been
mentioned but not understood. These factors intertwine within the study area.

If there was a land use category for Provincially Significant Agricultural Business
Communities, much of the study area would be designated Class 1+.

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Chapter
A G I R C U L T U R E B U S I N E S S C O M M U N I T Y

A Visitor’s View

I n order to appreciate the statistics to be presented in this report, it is useful to

stand back from it all and take a bird's- eye view. Suppose we are a first-time
visitor arriving at Pearson airport. We are picked up by car and driven to
Stratford. What do we see?

For the first 50 kilometers or so of 401 West our visitor sees massive urban growth
and heavy 24/7 traffic rushing by on one of the busiest urban corridors in the
world. Around Milton our visitor sees the breathtaking Niagara Escarpment and
traffic density reduces a little as green space increases. Past the Highway #6 exits
(to Guelph and Hamilton) development and traffic density declines further until the
Cambridge interchanges, the gateway to Waterloo Region. Once again, heavy
commercial, big box and factory activity is highly visible and this appearance of
rapid urban development continues on the # 8 exit to Kitchener/Waterloo and along
onto the # 7/8 West exit towards Stratford. When our visitor passes Trussler Road
on 7/8 the highway and the landscape broadens into a more leisurely four lane 90
kilometer per hour pace. So far our hypothetical passenger has not stopped moving
unless they got caught in gridlock.

At the New Hamburg exits a series of traffic lights slow up the four lanes and define
a strong commercial zone. New housing developments are also visible, a response to
the job dynamo that is Waterloo region. Then, just past Walker Road a big curve in
the highway signals a significant qualitative change in the landscape and its use
value. Looking west and north and south our visitor sees only farms and small rural
residential properties. The big curve ends with a new set of traffic lights at Road 101
to Tavistock.

Highway 7/8 then dramatically changes into a two lane thoroughfare with traffic
being forced to squeeze under the CN overpass. But, except for the village of

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Shakespeare, the landscape both north and south of 7/8 remains rural and
agricultural with large wooded sections all the way to the edge of Stratford.

For our visitor, the highway from New Hamburg to Stratford may superficially
look like a twenty-five kilometer corridor of 'green and pleasant land', and for
many residents this is why they choose to live here. But in fact, as the statistics will
show, it is a 25 kilometer corridor of very intensive agricultural business activity.
This corridor contains several of the most productive farm operations in the
province and some of the most expensive agricultural properties in North America.
It is therefore no accident that our traveler occasionally notices a road-side sign
that says, 'Farmers feed cities'.

Highly productive farms require good land, low surrounding population densities
and minimal development pressures on the critical land and forest base. West of the
Greater Toronto Area (GTA), three counties have high agricultural land
capabilities, low population densities and low development pressures. These are
Perth, Oxford, and Huron. These three counties are undisputed agricultural
business powerhouses and this applies particularly to the dairy, beef, hog, and
poultry industries. While Waterloo region contains townships where agri-business
is a dominant economic factor, and while Wilmot Township is certainly one of these,
in the overall scheme of things, Waterloo region has evolved into a largely
urbanized municipality.

Thus the municipal boundaries dividing the twin cities of Kitchener/Waterloo and
Wilmot Township mark a definite qualitative shift in perceptions of land use from
urban use to rural agricultural. The second municipal boundary that divides
Waterloo Region and Perth County serves to reinforce that qualitative shift. Due to
these very old settlement patterns it is therefore no accident that Wilmot, Perth East
and Perth South are major provincial agri-business centres.

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2
Chapter

Misleading Underlying
Assumptions

Point one: Population Projections as an Underlying Assumption

In “Report A: Study Plan Technical Work, Outreach and Consultation,

June 2008” the Introduction to the Highway 7 & 8 Transportation Corridor
Planning and Class EA Study, page 1, cites several areas to be addressed. We assume
these were outlined in the Request for Proposal developed by the Ministry of
Transportation (MTO) and responded to by TSH and others bidding for this work.

We appreciate that consulting teams need to be provided with guidelines to

undertake projects of this significance and that legislative and regulatory processes
are required to avoid random approaches. We, like the MTO, want the best decisions
to be made for the particular study area and not decisions based on a cookie cutter
approach that could see the geographic names of the communities interchanged.

In the case of the Transportation Corridor Planning and Class Environmental

Assessment (EA) study carried out in Perth County, we believe the (MTO), acting as
an agent of the Province, negligent in not placing the Ontario Ministry of Agriculture,
Food and Rural Affairs (OMAFRA) Guidelines and the Provincial Policy statements
relating to the importance and protection of agriculture, as a prerogative of the
consulting team. This has more relevance than the population projections of the
Greater Golden Horseshoe (GGH).

Item five states: “Address the transportation policies and directions of the
“Growth Plan for Greater Golden Horseshoe” (recognizing that a portion of
the analysis area for this project lies within the GGH”).

A portion of Wilmot Township falls within the boundaries of the GGH and
discussions with the staff at the Region of Waterloo indicate that the Region is

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questioning the validity of the population projections for the Waterloo Region AND
they point out that even if the population of Wilmot doubled within the GGH
projection period, this would be insignificant as far as the Region. Other areas of the
Region of Waterloo are identified as growth centers. In addition, the majority of the
study area falls outside the GGH and within Perth County .

Population Growth Statistics

Tables A1, A2, and A31 summarize the 2006 census population growth statistics for
the affected municipalities and compares them to Stratford, the region of Waterloo
and Ontario as a whole. As can be seen, Wilmot has grown very rapidly (15%) over the
five year intercensal period from 2001 to 2006. This is primarily due to residential
growth in Baden and New Hamburg.

Wilmot's growth is a significant part of the overall 9% increase in the population of

Waterloo region over the five year period. Perth East and Perth South both declined
slightly in population between 2001 and 2006 and Stratford's growth at 2.3% has
been quite modest, even when compared to the provincial aggregate growth of 6.6%.
A large percentage of the labour force living in Perth South and Perth East work in
the agricultural industries, 20% and 21% respectively, and this industry is the
dominant means of employment. In contrast, in Wilmot, those working in agriculture
are 5.6% of the experienced labour force.

Census statistics are generally used as a basis for population projections by cities,
towns and other municipalities. However, population projections are often quite
optimistic. Projections are based on 'assumption models' and the main problem is
that people move around and make other decisions that cannot really be reflected in
these models. Most projections are simply best guesses.

By way of example, Table A4 shows the projections made for the County of Perth,
using 1991 as a base-line and the 1996 Census counts as a qualifier. As can be seen
the model predicted a population for Stratford, in 2006, of 32,028 people. Census
data for 2006 actually counted 30,461 Stratford residents. Similarly Perth East's
growth to 2006 was overestimated in the model by 1545 people or nearly 13%. Perth
South's projected 2006 population was overestimated by nearly 17%. County staff
inform us that new projections will be devised based on 2006 Census data but these
are some distance from being developed.

Table A5 is drawn from a long range plan developed by the province for the Greater
Golden Horseshoe. The GGH plan is an impressive expansion of the Greater Toronto
Area (GTA) concept and covers most of central Ontario, including Waterloo region.
Within the plan the region of Waterloo is projected to grow from a base population of
456,000 in 2001 to 729,000 in 2031, a 60% increase over thirty years.

1
See all Tables beginning with page 27

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The GGH, in total, is projected to contain 11.5 million people by 2031. Whether these
figures are credible depends on many assumptions built into the models, which are
unavailable for examination.

In summary, recent growth of Wilmot Township is quite dramatic and the

agricultural sector must obviously compete much more vigorously for its fair share of
land. This pattern may continue for many years to come. Perth East and Perth South
are showing small declines in total population and these two municipalities remain
dominantly agricultural. No readily available evidence currently exists to support the
notion that population growth in any part of Perth County may suddenly accelerate
along the lines of Waterloo region. While recent projections for the Greater Golden
Horseshoe suggest massive population growth in various Toronto centered region,
these trends do not currently extend to Perth.

The GGH does not mirror the conditions, population, growth and development
conditions of the majority of the study area. Neither does the condition of Kitchener,
Waterloo and Cambridge mirror the development or potential for the City of
Stratford.

The consultant may be required to cite this initiative but the development of growth
strategies for this heavily urbanized and urbanizing area of Ontario seems
inappropriate to be used to set the stage for Perth County with distinctively different
resources, economy and population dynamics. The influence of the policies for the
GGH should have only a limited influence, if any on the study area.

Point Two: Greater Stratford Area

On page 2 of the Introduction to Report A the geographic area “Greater Stratford”
is introduced and used throughout the reports but does not identify what is meant by
this. The term implies a metropolitan area and not a slow growing city. What does
the consultant define as the boundaries of the Greater Stratford Area? It is hard to
comment on something we don’t know about.

Point Three: When does the Existing Economy Count?

Six objectives are identified in Report A (pages 3-6). Objective 2, identifies the need
to address long term needs for the movement of goods and people and stimulate
economic growth and create jobs and Objective 4, identifies the need to conduct
planning and design with an approach to avoid or minimize overall environmental
impacts.

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These statements imply the environment and the creation of new jobs are of higher
priority than the protection of the local existing economy.

Where is the objective to avoid or minimize impacts on existing economic generators

within the study area that will lead to the loss of jobs and reduced economic growth
and impact the local cultural landscape?

Point Four: Unsubstantiated Issues

Report A, section 1.3 Preliminary Statement of Transportation Problems and

Opportunities, page 6 identifies six problems and opportunities to be addressed by
the study. Item 6 states” Area transportation planning and local land use planning
in the analysis area need to be co-ordinated, in order to ensure new/intensified
development associated with forecasted population and employment growth in the
Analysis Area does not negatively affect or even preclude alternatives to address
transportation problems and opportunities”.

Where in the report do the consultants address the “forecasted population and
employment growth”? This is raised as a problem to be addressed but nowhere in all
of the reports is any information provided and the implications discussed. This is just
assumed. If this is considered one of six problems surely it merits being addressed.

Point Five: Where is the existing community recognized?

Report A, pages 15 - 16 identifies the Principles for Conducting the Study. It

appears that the process of undertaking consultation is more important than the
community being consulted. Where is the principle of doing the least harm to the
community?

Point 6: We Applaud this Direction

Report A section 2.4.1 identifies the transportation engineering principles to be

applied to the alternatives. Item (j) page 16 states “minimize property requirements
and impacts on adjacent properties”

This is the first statement in the report that hints to the possible disruption in the
community and the negative impact of this work on landowners. We applaud this

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principle and will hold the consulting team and MTO to this. We will be interested in
the approach used to do this.

Point 7: Wetlands Trump Agriculture

Report A, under the heading Environmental Protection Principles, item (h)

page 17 states:” balance the approaches to environmental protection, recognizing
that the general order of decreasing preference is as follows:
. avoidance/prevention
. control/mitigation ( reducing the severity of the environmental impacts)
. compensation ( provision of equivalent or countervailing environmental
features)
. enhancement ( improvement over previous environmental conditions)

It is interesting that in the provincial Greenbelt rhetoric we are all working together
as land stewards but it appears not so in the case of highway development. The
environment has priority in this set of priorities and the members of the community
who have been stewards of the land for several generations are ignored.

We recommend that the consultants use the same template developed for reviewing
environmental impacts to develop a similar priority and approach to Agricultural
Business landscapes in the study area. In future studies the Ministry of
Transportation must change the approach of any study protocol involving
agriculture.

Point 8: Evaluation Principles Lacking

Report A, section 2.4.3, Evaluation Principles – (item e) page 18

“evaluation criteria to be comprehensive, fundamental, relevant, independent,
measurable and well defined.”

The consulting reports reference agricultural land capability and touch on the generic
features of culture within the study area.

In section 7.3, Evaluation Factors, agriculture is identified in two of the list of sixty-
two criteria. Under the broad factor of Land use, agriculture is mentioned on page
110 regarding the potential to affect specialty crop areas and /or areas of CLI class
1, 2 and 3 lands. The second reference is 4.4 Agriculture, where the road has
“potential to support the agricultural industry by efficient movement of goods”.

Agriculture must have a higher priority at this stage in the evaluation.

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3
Chapter

Provincial Legislation,
Regulations and Policy Affecting
Agriculture

Several pieces of provincial legislation that direct the activities of

the agricultural industry are completely missing from the
analysis. They are fundamental to understanding the impact of
any changes in land use within the study corridor.
They are:

! Nutrient Management Act, 2002

! Nutrient Management Strategy (NMS)

! Nutrient Management Plan (NMP), O. Reg. 267/03

! Nutrient Management Protocol, August 12,2005

Nutrient Management Act, 2002

The Nutrient Management Act provides for the management of nutrients to

enhance protection of the natural environment and provide a sustainable future for
agricultural operations and rural development. The "Nutrient Management Strategy"
describes the generation, storage and destination of prescribed materials. As per Part
5 of the Nutrient Management Protocol, the required content of a NMS includes:

• farm unit information and identifier number;

• description of the operation;

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• Farm Unit Declaration Form, detailing property information such as

geographic location and stating if the property is a manure generator and/or
receiver;
• Broker or Nutrient Transfer Agreements;
• Farm Unit sketch;
• list of the type of prescribed materials generated or received;
• analysis of nutrient content or nutrient values of those prescribed materials;
• destinations for nutrients generated;
• storage information, such as annual amount stored , number of days of storage
available, and amount remaining, including storage sizing calculation;
• Contingency Plan;
• sign-off form; and
• where prescribed materials are to be land applied as part of the NMS, a
demonstration of adequate land base to provide assurance that these materials
can be managed within the amount of land available.

Nutrient Management Plan O. Reg. 267/03

A Nutrient Management Plan (NMP) describes the management of the nutrients

that are received or applied on the land. As per Part 7 of the Nutrient Management
Protocol, the required content of a NMP includes site-specific information on:

• nutrients, including types generated, used and received, if applicable;

• nutrient application rates, methods and timing, including fertilizer and
prescribed materials;
• land base and Farm Units, including demonstration of adequate land base for
land application;
• cropping practices, including crop rotations and yields; and
• field information, including field sketches, soil information, sensitive features
and application setbacks from surface waters (as defined under O. Reg.
267/03, as amended).

A farm unit can be a number of separate parcels of farmland identified in a Nutrient

Management Strategy or Plan and compliance means adequate access to the parcels
that make up the farm unit.

All of the requirements fall under the Nutrient Management Act, 2002.
The act is administered and monitored by the Ontario Ministry of Agriculture, Food
and Rural Affairs (OMAFRA).

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Nutrient management plans are basically written proof that all nutrients produced or
brought onto the farm are stored and applied to the land in a safe manner, without
any adverse effects on water quality, soil quality or any other environmental issues.
This is usually done by paid, certified consultants.

Many factors are taken into consideration about how much land is required,
including type and amount of nutrients produced as well as how and when they are
applied. Hydrologic soil types and available soil nutrients will adjust the amount of
nutrients, which can be applied to each acre of land. Distances from sensitive features
such as wells, watercourses, neighbors and roads are also factors, which could affect
the amount of land required.
The physical separation of parcels of land that make up current farm units has a
significant impact on operators meeting their obligations under the Act, and reduces
the potential for future livestock development in the area.

Farms that currently have a nutrient management plan would need to be updated as
all plans must be renewed and re-certified every 5 years after their last certification.

Farms, which have lost land due to construction, may not have enough land when re-
certification is required to apply all of the nutrients to the land base which is
currently available. At this point they would have to either buy more land to apply the
nutrients to, or reduce their number of livestock they have in order to have the proper
land base, which would reduce their income.

Farms which may need a nutrient management plan in the future would have to
reduce the amount of livestock they would be allowed to have according to the
remaining land base they have available for nutrient application. Or, increase their
land base. This would permanently reduce the available income that the farm can
generate in the future.

Land in this three township region is in such high demand; the area has some of the
highest agricultural land prices in the province. Farmers who may be impacted by any
loss of land will not be able to easily replace those acres. To dismiss this concern without
understanding the implications to farmers on the possible loss of income associated with
reduced acreages, is simply not responsible.

Minimum Distance Separation (MDS) Formulae 2006

The 2005 Provincial Policy Statement requires new land uses, such as the creation of
lots and new or expanding livestock facilities, to comply with the Minimum Distance
Separation (MDS) formulas. The MDS is used to determine a recommended
separation distance between a livestock or permanent manure storage facility and
another land use. The MDS is incorporated into municipal zoning by-laws and official
plans.

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The 2006 version of the MDS formulae came into effect on January 1, 2007. MDS is
made up of two separate, but related formulae (MDS I and MDS II).

! MDS I - used to determine a minimum setback distance between proposed new

development and existing livestock facilities or permanent manure storages, intended
to protect farmers from non-farm land uses

! MDS II - farmers wanting to build a new barn, or expand a barn will have to meet
MDS II before a building permit is issued. MDS II setbacks are also calculated from
rear lot lines, side lot lines and road allowances.

The separation distances calculated by MDS vary depending on the type of livestock,
size of the farm operation, type of manure system and the form of development
present or proposed. Changes in lot lines may result in existing livestock structures
being non-compliant and limiting future development. Of particular note, the MDS I
Calculation Table requires a factor to be created using the maximum tillable hectares
on the lot with the livestock facilities. Fewer hectares will change this calculation.

Municipal Drains affected would need to be reviewed when the highway is built.
The province, via MTO will need to commission and cover the costs for new drainage
reports to be done on all those Municipal Drains affected. Changes in Municipal
drains have direct implications to private tile systems and landowners will need to be
reimbursed for new costs associated with these changes.

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4
Chapter

Agribusiness in the Study Area

Section 6 of Report B: Overview of the Transportation, Land Use and Economic

Conditions within the Analysis Area describes the socio economic conditions of the
area. This section of the report is completely inadequate in its review of the Agricultural
Sector. Equally obtuse is the conclusion on page 32 which states “Given this diversity,
the Analysis Area is considered quite sustainable, and as such, it is important that the
Ministry plan for future improvements to Highway 7&8 to support this sustainability.”

Section 10 of Report B sets out a series of goals to be used to verify and define
transportation system problems and opportunities. AGRICULTURE IS MISSING!!!!!!!
There is mention of tourism. There is mention of providing a mix of land uses. There is
mention of encouraging residential and employment intensification and there is
mention of discouraging development along transportation corridors in rural areas.
There is no goal for agriculture.

Agricultural Business and Production Statistics

This section of the brief will begin at the county and regional level and then work down
to the affected township levels. This method is chosen in order to clearly identify the
scale of surrounding agri-business activity since this directly influences the four most
affected townships of Wilmot, North and South Easthope and Downie.

Table A6 is a snapshot portrait, prepared by OMAFRA and using 2006 Agricultural

Census data, of the overall agri-business activity in Perth County. In 2006 there were

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2,438 farms in Perth with a total acreage of 201,599 hectares or about 498,000 acres.
This is predominantly Class 1 and 2 farmland as well as woodlots, wetlands and stream
beds. Farm sales receipts for 2006 for Perth were $ 558.5 Million and the largest four
components of these receipts ranked in order of dollar worth are dairy, hogs, beef cattle,
and poultry. Nearly ten percent of all the dairy cows in Ontario are in Perth as well as
nearly 17% of all the hogs and nearly 10% of all the poultry. Critters clearly abound here.

Table A7, drawn up from the 2006 agricultural census, draws a sharper portrait for Perth
East which has the largest land area of the three affected municipalities. Total gross farm
receipts for Perth East in 2006 were $ 202.3 million. This is a lot of money but it is the
capitalization of agriculture today that really opens people's eyes. For Perth East the
total farm capital (machinery, livestock, poultry, land and buildings) accounted for in
2006 was $1.24 billion. As Table A8 shows a large number of farm operations, over
40%, have capitalization of over $1 million and 16% have capitalization exceeding $2
million. It would be a mistake to imagine that these costs of production are mainly in the
land base. By way of example, Perth East has 155,584 acres in farm land. If this were
nominally valued at $ 4,500 a bare acre, -then land capitalization would be about $ 700
million. This means that $ 350 million of farm capitalization in Perth East rests in the
buildings, another $ 120 million in machinery and equipment, and another $ 63.5
million in livestock and poultry and so on.

Perth South has a similar profile even if geographically it has a smaller footprint with
33,844 hectares or 83,628 acres of farm land as shown in Table A9. Gross farm receipts
were $ 104.8 million and farm capitalization was $ 666 million. As Table A10 shows,
53% of farm operations in Perth South have capitalization over $ 1 million and 24%
have capitalization exceeding $ 2 million. This suggests that farm operations are even
more costly here than in Perth East.

Table A11 shows the same data for Waterloo region as we examined earlier for Perth. In
2006 in Waterloo region there were 1,444 farms with total acreage of 91,614 hectares or
226,400 acres. In Waterloo region, farm receipts in 2006 totaled $ 307.7 million with
beef cattle, dairy, poultry and hogs being the top four producer areas when rank ordered.

Table A12 isolates data for Wilmot Township where there were 247 farms with 48,695
acres of farm land in 2006. The sales receipts for Wilmot were $ 98.5 million (one
third of all receipts for Waterloo region) and the total capitalization was close to
$ 438 million. Looking at Table A13, nearly 15% of these Wilmot township farms
reported total capitalization for their operation exceeding $ 3.5 million.

Thus the combined annual farm sales receipt, for these three municipalities, is
$ 405.6 million and the combined total farm capitalization is $ 2.3 billion dollars.

Industry Production Figures

Some statistics have been gathered by community representatives from the livestock
and poultry marketing boards and commissions. These boards and commissions keep

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detailed records of farm production as they are responsible to manage the supply of
commodities like eggs and milk. Sometimes these data allow one to see farm operations
at a finer level of detail.

Since dairy production is such a dominant factor in the affected area, and since it is
capital intensive, data has been solicited from the Dairy Farmers of Ontario (DFO).
Tables A14 and A15 break down the dairy production figures for Perth County and
Waterloo region by township. These tables also highlight the four targeted townships.

In Wilmot nearly 30 million litres of milk are shipped annually by 33 dairy farmers with
annual milk revenues of over $ 21 million. In Downie, 28 million litres are shipped by
37 farmers with milk revenues rising to over $ 20 million. This gives an average of
$ 586,000 in milk revenue per farm per year for producers in these two townships.
South Easthope has 25 milk producers with a little less than 20 million litres being sold.
North Easthope has 30 producers and an annual production of 14 million litres. Milk
production is, of course, the central feature of dairy operations but cash crops are
another important element that will be commented on below. However, while the
average dairy revenue stream may superficially look exciting, no one should
underestimate the enormous capitalization, livestock and labour costs required for a
farm to produce a half million litres of milk a year.

Pork industry figures have been supplied by Ontario Pork and are digested in Table A16.
Perth East has 198 pork farm premises and the biggest inventory of pigs, with 219,000
animals on the books currently valued at $31.5 million. This is down from a 2006
census count of 251,000 pigs, but pork production as an industry is down overall due to
reduced animal values in the past two years. Perth South with 39 pork premises and
Wilmot with 18 pork premises are more modest pork producers.

Sows are very prolific producers of off-spring and this is reflected in the Estimated
Annual Sales Value figures for pork farms. Like the dairy business, buildings and
equipment to house and manage pigs are very costly and capital intensive as the
Estimated Pork Producer's Building Values also show. Pork production is a dominant
farm industry in Perth East.

Information on broiler chickens has been supplied by the Chicken Farmers of Ontario
(CFO) and is digested in Table A17. There are sixty-one sites that produce broilers in the
three municipalities. Perth East has 51 broiler barns with an inventory of over 796,000
birds valued at $ 2.38 million. Wilmot has 31 producers with 52,800 birds housed and
valued at $1.58 million. Perth South has 17 producers with an inventory of 36,000 birds
and a value of a little over $1 million. As Table A17 clearly shows, when combined, the
annual sales value of these operations, over the three municipalities, is estimated at
$ 30.3 million with combined building values of $33.6 million.

Even though it is a very significant component of local farm activity, information on

beef cattle is very hard to obtain because supply is not regulated. The value added by

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cash crops is noted in Table A18 where estimates for the 2008 crops have been
calculated at the township level. From a cash crop perspective Downie Township plays a
leading role in local production with an estimated $17.6 million harvest coming this
crop year. Combined sales of cash crops for all four townships are estimated at close to
$30 million.

Our conclusion is simple and straightforward. In the three municipalities of Perth East,
Perth South and Wilmot, agriculture is very big business.

But we would be remiss in not mentioning that sheer size and volume are not the only
parts of agriculture that need protection from pavement. In the last two decades or so a
new agricultural trend has emerged involving small scale farming, specialty crops and
market garden ventures, as well as other livestock such as goats, heritage strains of pigs,
cows, chickens and farmers raising crops, animals and poultry using other reduced
environmental impact methods.

Of late there has been a sharp increase in consumer concern about the food-chain, both
what goes into its production and where it is cropped. The new small scale trend where
consumers take a more active and selective interest in the food commodities they use
and consume is now unlikely to disappear. Gourmet restaurants and grocery stores are
now locally sourcing fresh food items.

Demand for goat milk and cheese as well as other gourmet cheeses is rapidly rising and
so on. While we do not have a complete inventory, we know that within the three
affected townships many, many small producers are defining and serving selective niche
markets and that these markets are expanding. Thus an important new trend in food
production is towards small, local and fresh whenever possible.

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5
Chapter

The ‘Culture’ of Agriculture

The base for our culture is always the land. There are
sound reasons for this, not romantic, old fashioned
imaginings.

The Land

Naturally Fertile Soils:

B y the late 19th century, South Easthope’s soils were highly regarded. The Beldon
Historical Atlas of 1879 declared that in proportion to its acreage “it is the most
valuable piece of territory within the whole of the Huron District.”

Today, these soils enable South Easthope to be part of one of Ontario’s most productive
agricultural regions. And while their potential fertility was recognized by surveyors and
settlers right from the beginning, the township’s soils have always needed good management
to become fully productive, especially the more level parts which are often so flat they’ve
been described as resembling the floor of an ancient lake.2

Almost two hundred years after these lands were settled; the land has been nurtured and
remains some of the most productive farmland in Ontario, if not Canada. It is difficult to
find a farm that is not viable, in economic terms. This exceptional soil is the underlying

2
Country Roads: The Story of South Easthope 1827-2000

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reason farms have stayed profitable and remained largely in the hands of multi-generational
farm families who know the value of this land.

The People

Report F Cultural Heritage, section 5.0, identifies built remnants but not the
existing cultural landscape. Cemeteries garner recognition but not members of the
founding families who CONTINUE to farm, build community and remain stewards of
the land.

For example, the Dietrich’s are original settlers arriving in the area between 1780-1800 .
Seven generations have continued to farm.
Over time, these families have developed the skills and knowledge needed to continue this
prosperity while passing on their experience from fathers to sons or daughters. The desire to
retain this land in the family has also created a ‘culture’ of growth and investment by these
same families.

Founding Families for the purposes of this report are those who settled in Wilmot West,
South Easthope and the Gore of Downie townships. Their great-great grandfathers
and/or grandmothers cleared the land, built the first homes, churches and schools of
the region and their names dominate the cemeteries of our local churches.

The Economy
These founding family names still dominate our community farms to this day. A
cursory review of local history books reveals a substantial number of families, who
settled in this region and still farm here today. Like the Dietrich family mentioned
above, they are raising the 6th and 7th generation of farmers.

The area has also attracted newer farm families from many countries. They settled here in
the decades after WWII and have the same ‘culture’ of raising and establishing, the 3rd
generation into agriculture. The same desire to retain the land in the family continues to
create a ‘culture’ of growth and investment, like those before them. This phenomenon is not
accidental.

To put a business face on this, compare our family businesses, their large numbers and the
length of time they have remained, viable, economic drivers of our economy, to the number
of multi-generational family businesses in an urban environment.

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The Economic Planning Department of Stratford has informed us that only about six
businesses in their community still survive from the early 1900’s. This tends to follow a
known pattern for family companies that is well documented. While in the three townships,
at minimum we have 50 family businesses, in the relatively small area south of highway 7
and 8.

In addition, these family businesses have survived and prospered far, far longer than the
norm. Many date from the early 1800’s. This also demonstrates a trend for Perth County at
large.

The stretch of land from South of New Hamburg between highway 7 and 8 and the old
Huron road, along line 33 and line 29, to the other side of the City of Stratford, is some
of the very best farmland in Canada. It is the foundation of the high number of multi-
generational family farm businesses that dominate the area.

The land is valuable, in high demand and coveted for a variety of business related
reasons. There is no more to be had. It is our industrial and economic engine and its
impact and worth to our communities cannot continue to be ignored.

To the uneducated eye land is just land. Even with its higher priority in the Provincial Policy
Statement, few urban residents or governments really understand what that means. We
believe that by defining our culture, in real terms others may begin to understand who we
are, why we value this land and what we contribute. Our hope is that better methods can be
found for other planners, consultants and governments to use in the future.

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6
Chapter

Conclusion
No one can read this overview and avoid noticing the implications. The three townships
targeted for corridor and route planning for highway 7/8 contain many hugely
important capital intensive farm operations. No municipality would seriously consider
drawing up road plans to pave over the top of or wreak havoc on its established factories
and existing industrial zones.

Urban businesses with sales receipts and capitalization on the scale outlined above are
considered 'protected species'.

In our townships, agricultural business is our mainline activity. Multi-million dollar

farm operations in North and South Easthope, Wilmot and Downie deserve the same
respect for their contribution to economic life as their urban business counterparts and
require the same sensitivity to their potential disruption.

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Annex Regarding Tables

Note to Readers

The attached tables are compiled from many different sources and in some cases have
been uniquely obtained by volunteer members of our agricultural business
communities. Direct comparability may not always be possible. For instance, data
collected by Statistics Canada is usually organized by Census Tracts. During the 1990’s,
Ontario amalgamated many county townships and communities and so Census data is
now routinely reported for these larger geographical areas, such as Perth East, for
instance, rather than say for North and South Easthope. In contrast, statistics obtained
from agricultural associations are sometimes still broken down to earlier township
levels.

Where practical, our statistics are presented at this township level. When these data
are unavailable a larger geographic unit must be substituted. So, for instance, in the case
of the former Downie Township, the 2006 population growth trends discussed are based
on overall Perth South data, excluding Stratford and St. Mary's. In the case of business
data for North Easthope and South Easthope, drawn from the 2006 Agricultural Census,
the larger municipality of Perth East is used. When these larger units are used to
substitute for smaller township areas the figures presented can be said to illustrate
general trends with some level of error possible. This error can be eliminated by
requesting special tabulations from Statistics Canada for the 2006 Census for smaller
units within the study area. Such requests, however, are beyond the scope of this report
and this is something that may need to be addressed in future by the study consultants.

Table Citations
Tables A1, A2, A3 from Statistics Canada. 2006 Community Profiles. 2006 Census.
Statistics Canada Catalogue no. 92-591-XWE. Ottawa. Released March 13, 2007.

Table A4 provided by the Perth County Planning Office.

Table A5 from Ontario Government, Places to Grow: Better Choices, Brighter Future,
Growth Plan for the Greater Golden Horseshoe, Ministry of Public Infrastructure
Renewal, 2006.

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Tables A6 and A11 from OMAFRA, Western Ontario at a Glance, based on the Statistics
Canada 2006 Census of Agriculture.

Tables A7, A8, A9, A10, A12 and A13 from Statistics Canada, 2006 Agricultural
Community Profiles, 2006 Census of Agriculture, Catalogue no. 95-631-XWE, Ottawa,
Released February 5, 2008.

Table A14 and A15 derived from data supplied by the Dairy Farmers of Ontario, August
2008.

Table A16 derived from data supplied by Ontario Pork, September 2008.

Table A17 derived from data supplied by Chicken Farmers of Ontario, September 2008.

Table A18 derived from data compiled by the Agricultural Business Community of Perth
South using standard industry figures, September 2008.

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