Characteristics of Canada's Diverse Farm Sector
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Much of the research in the past on farm structure and economic well-being focused almost exclusively on farms based on their size, their contribution to total agricultural production, or national net farm income. These aggregate measures do not by themselves adequately explain how well the farm is functioning. Confidence in highly aggregated measures of financial performance in agriculture needs to be tempered with an understanding of the diversity that exists within the farm sector.
Agriculture and Agri-Food Canada (AAFC) developed a farm typology, to better explain why particular groups respond differently.
The AAFC typology classifies farms into more homogeneous groups based on five factors:
organizational structure (non-family farms)
age (retirement farms);
dependence on off-farm income (lifestyle farms);
total family income (low income farms)
revenue class.