Farm business cash flows

After consecutive decreases of 5.9% in 2002 and 28.8% in 2003, cash income increased to $8.2 billion in 2004, the result of a 7.0% increase in the sales of primary agricultural products. The main increases in sales were recorded in the crop and hog sectors. Despite the rise in 2004, the level of cash income was slightly above the previous five-year average (1999 to 2003). The cattle sector, which was also facing a very difficult period in 2004 because of the BSE situation, saw a small decrease from 2003.

The amount of cash available for investment or withdrawal also went up in 2004. It increased by 8.8% from 2003 to $9.9 billion. However, it remained 3.8% below the previous five-year average which was weighted down by difficult years in 2002 and 2003.

Cash available to producers was expanded through borrowing, resulting in a net change in loans outstanding reaching $1.7 billion in 2004.

All provinces recorded increases in cash income, except Prince Edward Island, New Brunswick and Ontario. Alberta had the largest increase in 2004, after recording the largest decrease the year before. Alberta was the province hardest hit in 2003 by the combined effects of BSE and the droughts in 2001 and 2002. Farmers from Prince Edward Island recorded the largest decrease in percentage as a substantial decline in potato prices led to a 7.8% drop in the sales of primary production.

Please note that this series does not include data on depreciation which are available from the publication Farm Operating Expenses and Depreciation Charges: Agriculture Economic Statistics (21-012-XIE, free).

Available on CANSIM: table 002-0023.

Definitions, data sources and methods: survey number 5031.

The publication Farm Business Cash Flows: Agriculture Economic Statistics, January 2006, Vol. 4, no. 2 (21-018-XIE, free) is now available online. From the Our products and services page, under Browse our Internet publications, choose Free, then Agriculture.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Marco Morin (613-951-2074; marco.morin@statcan.gc.ca), Agriculture Division.