The Daily. Monday, June 3, 2002

Farm families' total income

Farm families continued to rely more on income from non-farm sources in 1999, according to analysis of data from personal income tax returns.

In 1999, income from non-farming activities accounted for 73 cents of every dollar in farm family income, up almost 2 cents from 1998.

On average, farm family income was $62,222 in 1999, up 1.8% from 1998. For a second consecutive year, the overall increase was the result of a gain (+4.0%) in off-farm income, which offset a 3.6% decline in net farm operating income (before depreciation).

All major sources of off-farm income increased in 1999, except the "other off-farm income" category which fell 2.5%. Starting in 1999, only Registered Retirement Savings Plan (RRSP) income of people aged 65 or older is included in RRSP income, which is part of other off-farm income. Average other off-farm income would have grown 8.8% without that change in the definition of family income.

Average off-farm employment income of farm families increased 4.3% in 1999, reflecting the 3.0% growth in employment in all sectors in Canada, as reported by the Labour Force Survey for the same period.

Families running hog farms posted the largest percentage gain (+39.7%) in 1999, mostly the result of average net farm operating income which more than doubled as the hog industry largely recovered from dismal prices in late 1998. Net farm operating income also increased on the strength of record marketings. Average total income of families operating hog farms was $58,913, up 23.9% from the previous five-year average of $47,534, but still below the average income of all farm families.

Hit by low grain and oilseed prices in the wake of high world supplies, families operating grain and oilseed farms posted a marginal 0.5% rise in average total income to $67,212. The 6.7% increase in their average off-farm income barely compensated for a 13.1% decline in their average net farm operating income.

Poor grain market conditions dragged down net farm operating income in the three Prairie provinces in 1999. These declines translated into decreases in average total income of farm families in Saskatchewan (-3.6%) and Manitoba (-0.9%). In Alberta, average total income rose by only 1.0%.

Average off-farm income grew in every province in 1999. The largest gain occurred in Nova Scotia (+7.8%). Average off-farm income ranged from $32,840 in Quebec to $57,447 in British Columbia.

Sources of farm families' income

Note: Off-farm income includes employment income, investment income, pension income and other income (government social transfers, excluding pensions, such as social assistance payments and child tax benefits; RRSP income of people aged 65 or older; and other income such as alimony or maintenance income and Net Income Stabilization Account payouts).

These estimates refer to the income of families involved in a single unincorporated farm with gross operating revenue of $10,000 or more in 1999. Families are defined as husband and wife, legal or common law, with or without children at home; or lone parent, of any marital status, with at least one child living at home. There is no restriction on the age of the children. Children must report a marital status other than "married" or "living common-law", and have no child living in the household.

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) or Sylvana Beaulieu (613-951-5268; sylvana.beaulieu@statcan.gc.ca), Agriculture Division.