The Daily. Tuesday, April 24, 2001
Farm families obtained proportionally more income from non-farm sources in 1998 than they did in 1997, according to analysis of data from personal income tax returns. Income from non-farming activities accounted for approximately 71 cents of every dollar in farm family income in 1998, two cents higher than in 1997.
On average, farm family income was $61,108 in 1998, up 3.2% from 1997, a slower pace of increase than the 4.2% gain in 1997.
This overall increase in 1998 resulted from a 6.1% gain in off-farm income, which offset a 3.3% decline in net farm operating income (before depreciation). Average off-farm income amounted to $43,677 in 1998, about 71% of total income. Average net farm operating income totalled $17,432, or 29% of total income.
Almost four-fifths of farm families had off-farm employment income, which averaged $29,309 in 1998, up 7.0% from 1997. In 1998, the labour market remained robust, thus offering good employment opportunities. The Labour Force Survey reported that employment in Canada in all sectors grew at a healthy pace for a second consecutive year in 1998, up 2.6% from 1997.
Also contributing to the growth in average total income were a 7.3% increase in average pension income, and a 6.8% increase in other off-farm income, which included increased payouts from the Net Income Stabilization Account (NISA provides financial assistance to producers by stabilizing their net income).
Investment income of farm families fell 1.2% in 1998 due to a 5.4% drop in dividend income from taxable Canadian corporations. Average investment income declined at a slower pace than in 1997 (-3.7%) due to higher interest rates - the Bank of Canada rate rose from an average of 3.52% in 1997 to 5.10% in 1998. Average interest income increased 0.7%. Three-quarters of farm families received investment income, unchanged from 1997.
Wages and salaries were still the most important source of off-farm income in 1998, accounting for 61% of the total. Pension income accounted for 12% of total off-farm income, and investment income, 10%.
Families specializing in poultry and egg production had the highest average total income ($78,607), a slight 0.5% gain from 1997. Families operating tobacco farms were a close second at $78,244, followed by those operating grain and oilseed farms ($66,857). Families operating potato farms posted the largest percentage gain (+29.5%) due to substantial growth in both the average net farm operating income (+41.7%) and off-farm income (+21.3%).
Families who ran hog farms posted the largest decline in income (-23.6%) due to a substantial 55.2% decrease in average net farm operating income. They also had the lowest average total income ($42,165).
Among the provinces, farm families in Alberta reported the highest average total income ($65,158), up 5.4% from 1997, slightly higher than the average of $64,530 posted in Ontario. Families in Prince Edward Island had the largest percentage gain, up 15.1% to $57,482. This growth was due to a substantial gain (+39.8%) in the average net farm operating income. Farm families in Newfoundland recorded the only decline, down 4.0%. They also had the lowest average total income at $48,694.
Farm families in British Columbia reported the highest average off-farm income ($54,452), followed by those in Alberta ($49,246). Farm families in Quebec again recorded the lowest off-farm income ($31,559).
Off-farm income includes employment income (wages and salaries; and net off-farm self-employment income), investment income, pension income and other income (government social transfers - excluding pensions - such as social assistance payments and child tax benefits; Registered Retirement Savings Plan income; and other income such as alimony or maintenance income and NISA payouts).
Sources of farm families' income
| 1997 | 1998 | 1997 to 1998 | |
|---|---|---|---|
| $ | % change | ||
| Off-farm employment income | 27 393 | 29 309 | 7.0 |
| Wages and salaries | 24 830 | 26 748 | 7.7 |
| Net non-farm self-employment | 2 563 | 2 562 | - - |
| Investment income | 4 542 | 4 486 | -1.2 |
| Pension income | 4 919 | 5 278 | 7.3 |
| Other off-farm income | 4 310 | 4 603 | 6.8 |
| Total off-farm income(1) | 41 165 | 43 677 | 6.1 |
| Net farm operating income (2) | 18 029 | 17 432 | -3.3 |
| Total farm families' income | 59 195 | 61 108 | 3.2 |
| - - | Amount too small to be expressed. |
| 1 | Excluding taxable capital gains. |
| 2 | Before capital cost allowance. |
These estimates refer to the income of families involved in a single unincorporated farm with gross operating revenue of $10,000 or more in 1998. Families are defined as husband and wife, legal or common law, with or without their never married children; or lone parent with at least one child, of any age, never married.
For custom data requests, contact the Client Services Unit (1-800-465-1991; agriculture@statcan.gc.ca). For more information, or to enquire about the concepts, methods or data quality of this release, contact Lina Di Piétro (613-951-3171; fax: 613-951-3868; lina.dipietro@statcan.gc.ca), Agriculture Division.