Canadian farmers experienced a substantial income boost in 2012

Tuesday, November 26, 2013

by MATT MCINTOSH

The net income of Canadian farmers increased by 31.7 per cent to $7.3 billion in the 2012 growing season over the previous year, says Statistics Canada.
 
The federal statistics gathering agency’s 2012 farm income report attributes the growth to an increase in farm cash receipts outpacing the increase in operating costs.
 
"Farm cash receipts, which include market receipts from crop and livestock sales as well as program payments, rose 9.2 per cent to $54.2 billion in 2012," says the report. "Farm expenses (after rebates) were up 6.7 per cent to 40.8 billion in 2012."
 
The report details that drought in the United States and some other countries led to higher prices for oilseeds and grain, which "played a major role" in the cash receipt increase here at home.

Similarly, cattle prices saw an overall increase as a result of "a reduced supply of market animals."
 
Hogs, however, did not fare as well; prices fell 3.4 per cent, causing a 2.3 per cent reduction in cash receipts.
 
Richard Reid, a cash crop farmer near Leamington, Ontario, agrees with the data presented by Statistics Canada, but says he’s taking it with a pinch of salt.
 
"2012 was a good year for quite a few people, but the report is really general, and you have to remember that prices drop just as fast," he says. "Corn, for instance, has dropped quite a bit since then, and prices for seed are always going up. I doubt the next report will be as good."
 
Statistics Canada does note its farm income reports are created on a provincial basis using "aggregate measures of farm income," and that net income can vary widely from farm to farm.
 
A full copy of the report can be found here. BF