Labor shortages in the agricultural sector limit productivity and growth in the sector and threaten Canada’s food supply, warns a Canadian Federation of Independent Business (CFIB) report released on Tuesday.

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According to data released by the CFIB, 74% of agricultural entrepreneurs are working longer hours due to staff shortages, and 61% have had to ask their employees to work more hours to make up for the staff shortage.

Almost half (48%) were forced to decline sales or contracts, while 41% reduced their service offering.

“We need policies that support our farmers and agro-entrepreneurs to ensure the productivity and competitiveness of the sector,” said Jasmin Guénette, vice-president for national affairs at the CFIB, in a press release.

“Solutions have to be found to the labor shortage in agriculture. They limit the productivity and growth of the sector and threaten Canada’s food supply.”

For the vast majority of agricultural SME owners surveyed (94%), rising input prices are also affecting their business, while 83% complained of problems caused by supply chain disruptions.

According to the CFIB Business Barometer, small business owners in the agricultural sector were the least optimistic about the future of their business over the past six months.

“Four out of five farmers said they would not advise anyone to start a business given the labor shortage. This situation is particularly worrying as many workers are retiring and too few young people are entering farming careers. We need to ensure farming is an attractive career choice for the next generation of farmers and agribusiness entrepreneurs,” said Taylor Brown, CFIB Senior Policy Analyst.

The CFIB believes that in order to help these companies, policymakers must, among other things, reduce their tax burden, particularly payroll taxes and the federal carbon tax.

The association also recommends simplifying immigration programs and processes for temporary foreign workers to bring more of them into the country faster.