Farm operators' total income

Average total income of farm operators rose 8.9% in 2000, the largest percentage gain since 1995, according to analysis of data from personal income tax returns. This growth was the result of a rise in both average net farm operating income (before depreciation) (+13.7%) and average off-farm income (+5.4%). The upturn in net farm operating income, which followed three straight annual declines, was responsible for most of the improvement in average total income.

Total income of farm operators averaged $43,558 in 2000. Average net farm operating income totalled $19,103, or almost 44% of total income, gaining two percentage points from 1999. Average off-farm income rose to $24,455 in 2000. Average off-farm employment income, which grew 6.5%, was the major factor in the increase in the average off-farm income of farm operators.

For a second consecutive year, operators running hog farms posted the largest percentage gain (+90.4%) in average total income for 2000. This was wholly the result of average net farm operating income, which more than tripled as hog prices continued to rebound from dismal prices in late 1998. Increased marketings of slaughter hogs also helped to push average net farm operating income up. The average total income of operators running hog farms was $59,900, well above the average income of all farm operators.

Average total income of farm operators specializing in fruit and vegetable production dropped 4.7% to $40,739. This decline stemmed from a 13.4% drop in average net farm operating income.

Among operators of farms of different sizes, those operating medium-sized farms posted the largest percentage gain in average total income, up 9.6% to $32,613 in 2000. However, their average total income, as well as the income of operators of small farms ($31,497), remained far below the national average.

However, average total income of operators of large and very large farms, which rely mainly on income from farming activities, was above the national average. Operators of very large farms earned $113,698 in average total income, up 7.5% from 1999. They earned $77,988 in average net farm operating income, representing 68.6% of their average total income. Operators of large farms earned $46,004 in average total income, up 4.0% from 1999.

Off-farm income includes employment income, investment income, pension income and other income (government social transfers; Registered Retirement Savings Plan income of farm operators aged 65 or older; and other income such as alimony or maintenance income and Net Income Stabilization Account payouts). Provincial family allowances are not part of operators' off-farm income.

These estimates refer to the income of farm operators involved in one or more unincorporated or incorporated farms. These estimates encompass unincorporated farms with gross operating revenues of $10,000 or more in 2000, and incorporated farms with total agricultural sales of $25,000 or more in 2000. Estimates for total income of farm families for 1999 were released in The Daily on June 3, 2002.

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.