Farm cash receipts trend upwards

Tuesday, February 26, 2008

by BETTER FARMING STAFF

A surge in grain and oilseed prices along with higher revenue for supply-managed sectors boosted the amount farmers received 12 per cent in 2007 compared to amounts received in 2006.

In total, Canadian farmers received more than $36 billion from crops and livestock. On their own, receipts for crop sales were $18 billion, a full 25 per cent more than what was received in 2006. Livestock receipts also grew to $18 billion due to higher dairy and poultry prices but that increase in growth was only about two per cent compared to 2006 receipts.

However, cattle and hog revenues declined in 2007.

The report said total farm cash receipts, which include crop and livestock revenues as well as program payments, reached $40.4 billion in 2007. That's nearly 10 per cent above farm cash receipts for 2006 and marks the first time that receipts surpassed the $40-billion mark.

Farm cash receipts measure the gross revenue of farm businesses in current dollars.

They include sales of crops and livestock products (except sales between farms in the same province) and program payments. Receipts are recorded when the money is paid to farmers before any expenses are paid.

Farm cash receipts are the first economic indicator available from Statistics Canada for the agriculture sector. They measure gross revenue for farm businesses only. They do not represent farmers' bottom line, as farmers have to pay their expenses, loans, and cover depreciation.

The report noted that inputs such as fertilizer have also increased. In the case of fertilizer, the Industrial Product Price Index puts that increase at slightly more than 20 per cent in 2007 compared to 2006. Feed costs were also higher. BF