Agricultural economy’ ripples’ through community

“Agriculture plays a critical role in Ontario’s economy. In addition to providing food for Ontarians, it also significantly contributes to employment rates and the prosperity of other related sectors,” states a 2024 economic impact study prepared by the Ontario Federation of Agriculture (OFA).

It found that for every dollar generated in direct farming activities, $1.67 in economic business revenue is created through direct and indirect effects. This economic output increases to $1.90 when considering the induced effects, which include the additional spending in the local economy by workers supported by the farming industry.

This ripple effect highlights how farming supports a wide array of secondary activities, from manufacturing and services to retail and beyond.

The report, drawing on the most recent Statistics Canada data, shows that Ontario farming alone generated $18.17 billion in direct revenue in 2020, generating $15.3 billion in GDP, $1.27 billion in tax revenue, 297,247 jobs, and $ 7.8 billion in labour income.