James Pascual
Farmers Forum
TORONTO — While Ontario’s largest farm organization might be attempting the impossible by appealing to all types of farms, one thing it seems to have mastered is keeping its financial books in order.
The Ontario Federation of Agriculture enjoyed its 9th stellar financial year in a row, recording a profit of $1.52 million for its 2023-2024 fiscal year.
That’s a far cry from 10 years ago when the farm support and lobby group reported an operating loss of $7,895.
Revenue
For its year ending August 31, 2024, the OFA reported gross revenue of $12.345 million and an after expenses profit of $1.52 million, down from last year’s record profit of $1.83 million last year and down from $1.55 million in profit two years ago.
The lion’s share of gross revenue was just more than $9 million from membership fees. The OFA is a not-for-profit farm organization with 38,716 farm business memberships. Each annual family membership is $255 + HST. To be eligible for membership a farmer must earn a minimum gross income of $7,000.
Other income sources included:
- Co-operators group limited loyalty program: $1,435,124
- Membership benefit programs:$447,250
- Investment income: $325,355
- Dividend income: $313,632
- Convention income: $146,480
For year 2023-2024 the OFA reported total net assets of just more than $20.6 million, including its office building in Guelph that cost more than $4.3 million and was ready for occupancy in 2021.
Investments
The OFA holds numerous investments. Its largest investment is in guaranteed investment certificates. It holds $1.977 million in GICs ranging in interest from 2.95 % to 6.02 %.
In previous years, the OFA was specific about which companies it invested in but this year listed simply that it holds investments in mutual funds, Canadian equities and foreign equities at a total value of about $8.7 million.
For the 2022-2023 year, the OFA was more specific, listing investments in the Co-operators Group (shares valued at $3.75 million), Bombardier (shares valued at $795,532), Royal Bank of Canada (bonds valued at $794,228), Bank of Montreal (bonds valued at $648,371) and TC Energy Corp (shares valued at $508,252).
The OFA has 48 full-time employees and one part-time employee.
Operating expenses
The OFA reported operating expenses of $10.94 million. Its 10 biggest expenses were:
- Field services: $1.81 million
- Finance and administration: $1.638 million
- County funding: $1.347 million
- Farm policy research group: $1.1 million
- Communications: $881,901
- Board of directors: $664,881 (Up from $470,000 two years ago. Three years ago the OFA paid $300 per diem and $400 per diem for the president.) The OFA pays 64 cents per kilometre for mileage.
- Overhead: $429,593
- Convention: $410,844 (up from $326,448 one year earlier)
- Executive members: $366,923
- Canadian Federation of Agriculture: $341,434
Ontario farms must sign up with one of three government-recognized farm organizations. After signing up membership refunds were requested by 867 farms, up from 860 last year and down from 929 in 2021-2022. There were 1,000 refund requests three years ago.
The other two organizations are the Christian Farmers Federation of Ontario representing more than 4,000 farm families and representing smaller farmers is the National Farmers Union with about 1,400 families and individuals.
As a non-profit, the OFA does not pay income tax. Non-profit organizations are allowed to earn tax-free profits provided that they were earned through the normal activity of the organization and can be considered a cushion to cover operating expenses for up to six months in the event of disaster or unforeseen risks.
The OFA’s annual report was presented at the organization’s annual general meeting in Toronto on Nov. 26 at the Delta Airport Hotel in Toronto.
