News Releases

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - A new report released today by BMO Bank of Montreal shows that 60 per cent of B.C. residents surveyed believe the migration of young people from rural to urban centers has a negative impact on the family farm. This concern is expressed by urban dwellers to the same extent as rural dwellers - and sometimes more.

According to migration trends from Statistics Canada, rural areas have experienced a net reduction of young people under the age of 25. Furthermore, based on the Census of Agriculture, farm operators under the age of 35, as a percentage of total farmers, declined from 9.1 per cent in 2006 to 8.2 per cent last year. In light of this decline, the BMO survey asked Canadians a range of questions on the impact of youth migration from farms to urban centers.

In addition to the negative impact on the family farm, British Columbians surveyed also responded that youth migration has had significant negative consequences on the:

• Supply of labour (54 per cent);
• Rural way of life (54 per cent);
• Rural economy (58 per cent); and
• Agriculture sector (58 per cent).

"For generations, young people have moved to urban centers for various personal reasons, including broadening their life experiences; that is just a fact of life. What this survey highlights is how important it is to have a vibrant, healthy and prosperous agriculture sector. It also reminds us that farming really is a good business that contributes significantly to the broader economy. Agriculture represents 8.1 per cent of Canada's GDP and employing one in eight Canadians directly," said Dave Dieleman, Director, Agricultural Markets, BC, BMO Bank of Montreal. "A farm is more than a business; it's a way of life, part of the fabric of B.C. and a source of Canada's economic strength.

"It is easy enough to take agriculture for granted when you have a grocery store full of food, but to sustain this, we need young people in agriculture. A main area of focus for the Canadian Federation of Agriculture is intergenerational transfers and building long-term profitability into farming operations," said CFA President Ron Bonnett. "BMO's study shows Canadians are sharing similar concerns and recognize the importance of the sector, and this is encouraging. Broad public support is what's needed to secure the future of our farms and food," added Mr. Bonnett.

Survey results cited are from online interviews with a random sample of 1,011 Canadians 18 years of age and over, conducted by Pollara between May 18 and May 23. A probability sample of this size would yield a margin of error of ±3.1per cent, 19 times out of 20.

BMO's roots in the Canadian agricultural sector date back to 1817, when it first began working with farmers. BMO Bank of Montreal provides customized loan and deposit solutions to Canada's agri-business owners, the single largest core commercial sector that the bank serves. For Canadian businesses, including those in the agriculture and agri-food sectors, looking to innovate, enhance productivity, and grow their business, BMO Bank of Montreal recently announced a credit boost of $10 billion over the next three years.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $525 billion as at April 30, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.