Beyond Production Agriculture Business Information Bundle

Frequently Asked Questions

Helpful information and resources on how you can add value-added agricultural products to your current farming operations are readily available. Answers to frequently asked questions can be found throughout this website and also by visiting the following links.

  1. What is production agriculture?
    Production agriculture or primary agriculture is growing or producing a product that has not been altered from its original state to increase its value.
  2. What does "value-added" mean?
    A value-added business is generally the transformation of a product or commodity from its original purpose to another valuable state. Value-added agriculture increases the economic value and consumer appeal of an agricultural product or commodity. For example, a fruit farm that normally sells its product fresh, may develop a line of frozen product or preserved product (jams, jellies, etc.) to increase their economic value.
  3. What are some examples of value-added agriculture and what opportunities exist?
    Adding Value Takes Many Forms
    Farmers Who Have Gone Beyond Production Agriculture
  4. How do I turn my value-added business idea into a reality?
    OMAFRA has developed Exploring Value Added Opportunities training materials to help producers develop a new idea and turn it into a reality. The training includes modules about generating ideas, selecting your best idea, assessing your idea's business potential, and next steps. It is available in workshop or self-paced, e-learning formats. For more information, visit the EVAO.
  5. How do I prepare a business plan?

    There are extensive resources, including guides and templates, to help you create an effective business plan for your operation. It is important to remember that business plans are 'living documents' that should be revisited and updated regularly. There are also farm business advisors that can assist you through the business planning process.
    Your Business Plan
    Farm Business Advisors by Region and Last Name

  6. Will adding a new facet to my farm business increase my taxes? The addition of value-added activities on your farm can affect tax assessments by the Municipality Property Assessment Corporation as well as farm income taxes through the Canada Revenue Agency. For more information, visit Taxation.
  7. How do I determine pricing for my value-added product?
    In order to capture financial benefit from a value-added product or service, you must give careful consideration to the price you charge. A comprehensive approach to pricing will consider the 3 C's: What are consumers willing to pay? What are competitors charging for similar products/services? What is your cost to produce the product or deliver the service? The following links provide additional information about pricing:
  8. May I place a road side sign at my farm to promote my value-added product or service?
    Be sure to consult sign bylaws with your local township, county, or municipality. Tourism signs on provincial roadways are managed by the Tourism-Oriented Directional Signing (TODS) program. For more information, visit Signage
  9. What uses are permitted in prime agricultural areas?
    The Provincial Policy Statement permits a wide variety of uses in prime agricultural areas. Uses fall under the categories of agricultural uses, agriculture-related uses and on-farm diversified uses. These uses help to maintain the land base for agriculture while supporting a thriving agricultural industry and rural economy.

    More information is available in OMAFRA's Guideline on Permitted Uses in Ontario's Prime Agricultural Area.

For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca
Author: OMAFRA Staff
Creation Date: 2 March 2010
Last Reviewed: 17 février 2017