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Nearly one-half (48%) of the 327,055 operators of census farms in Canada in 2006 reported that they worked off their holding, an increase from 44% in 2001. As the number of operators has declined, the number reporting off-farm work has increased. Between 1991 and 2006, the number of operators in Canada fell 16%, while the number who worked off the farm rose 9%. The prevalence of off-farm work by operators increased in each farm size class, as measured by gross revenue. In both 2001 and 2006, more than 60% of operators of census farms with gross revenues below $10,000 were employed elsewhere. In contrast, 25% of the operators of farms with gross revenues of more than $250,000 were employed off-farm in 2006. This was up from 19% in 2001. For operators of both smaller and larger farms, human capital and the characteristics of farms were significant factors in whether an operator worked elsewhere. For instance, the typical operator with a university degree was far more likely to work off-farm compared with the average for all operators. Younger operators were more likely to be engaged in off-farm work, as were male operators compared with female operators. For operators of smaller farms, family characteristics as well as community and regional characteristics were significantly more important factors. For example, operators who lived in communities that experienced rapid growth in employment between 1991 and 2001 were more likely to be engaged in off-farm work. Contrary to expectations, the proximity to urban centres was not associated with the probability of off-farm work participation. Thus, the performance of rural labour markets is an important factor in the economic well-being of farm operators. Other factors in off-farm work included the type of farm and the corporate structure. Operators of dairy farms were considerably less likely to report off-farm work, compared with any other type of farm operation. Off-farm work was more likely to occur for operators of unincorporated farms, and for farms where there was more than one operator associated with the farm.