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The Daily

The Daily. Monday, December 3, 2001

Farming operating revenues and expenses

2000 (preliminary estimates)

Average operating revenues per farm rose 9.0% in 2000 to $172,796, according to taxation records. In the same period, average operating expenses rose at a similar rate (+8.6%) to $148,395. Operating margins were 14.1 cents per dollar of revenue, up from 13.8 cents in 1999. In current dollars, average operating revenues in 2000 were 18% above the five-year average for 1995 to 1999, but operating margins were lower by 1.4 cents per dollar of revenue.

Strong growth in livestock revenues (+10.9%) largely explained the overall rise in average operating revenues. In particular, higher revenues from the sale of hogs (+30.5%) and cattle (+16.7%) contributed significantly to the increase of the livestock sector. Crop revenues were also up slightly (+2.1%).

Average operating expenses climbed, mainly because of higher livestock expenses (+12.8%) and machinery expenses (+10.8%). Heating fuel costs were also up significantly (+37.3%).

In 2000, the average operating revenues of greenhouse and nursery farms ranked first at $618,916, followed by those of potato farms ($541,316). Hog farms posted the largest percentage increase over 1999 among all farm types, earning 23.7% more in average operating revenues.

Dairy farms had the highest average operating margins, 25.4 cents per dollar of revenue, down 0.3 cents from 1999. Tobacco farms ranked second at 21.7 cents. Only these two farm types had operating margins higher than 20 cents per dollar of revenue. Six of the eleven major farm types posted higher operating margins in 2000; hog farms had the largest increase, 7.1 cents, from 4.8 cents in 1999 to 11.9 cents in 2000.

Average operating revenues and expenses per farm and operating margins


  Average operating revenues Average operating expenses Operating margin(1)
  Dollars Cents
All farms 172,796 148,395 14.1
       
Greenhouse and nursery 618,916 547,562 11.5
Potato 541,316 455,575 15.8
Poultry and eggs 531,044 464,822 12.5
Hogs 522,587 460,521 11.9
Dairy 259,711 193,755 25.4
Tobacco 258,485 202,450 21.7
Livestock combination 223,639 186,396 16.7
Fruit and vegetable 178,612 155,193 13.1
Cattle 164,876 153,783 6.7
Grain and oilseed 115,175 92,578 19.6
Other farm types 91,752 82,261 10.3
1Defined as one dollar less operating expenses (before depreciation) per dollar of revenue.

Note: These estimates cover unincorporated farms with gross operating revenues of $10,000 and over, and corporations with total farm sales of $25,000 and over for which 51% or more of sales come from agricultural activities. Estimates in this release exclude communal organizations. Operating margin is defined as one dollar minus operating expenses (before depreciation) per dollar of revenue. These estimates represent over 90% of all filed tax returns of farming operations for 2000. Final 2000 estimates will be released in March 2002.

For custom data requests, contact Client Services (1-800-465-1991; 613-951-5027), Agriculture Division. For more information, or to enquire about the concepts, methods or data quality of this release, contact Bruce Orok (613-951-9217), Agriculture Division.



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Date Modified: 2001-12-03 Important Notices