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Farm business cash flows
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Cash income for Canadian farm businesses rose by $1.5 billion, or 17.5%, to $10.4 billion from 2007 to 2008, despite declines in four provinces. This was the second consecutive annual increase.
Strong grain and oilseed prices more than offset a significant increase in operating costs.
Cash sources increased 12.1% to $48.2 billion, while cash uses increased 10.8% to $37.8 billion.
Cash income fell in Newfoundland and Labrador, Prince Edward Island, Nova Scotia and Manitoba, where large increases in expenses on inputs outpaced gains in sales. In contrast, cash income rose in the remaining provinces.
Cash available to producers through borrowing increased in 2008 as both current and long-term liabilities increased. There was a net increase of $2.6 billion in loans outstanding in 2008.
The amount of cash available for investment or withdrawal (cash income plus the net change in loans outstanding) increased 15.8% to $13.0 billion.
The ratio of loans outstanding to cash income, which reflects the burden of farm debt on farm cash income, fell for the second consecutive year to 4.8 in 2008.
Note: While similar to the Farm income data released on May 25, 2009, in The Daily, the cash flow account is a summary of cash flow in and out of farm businesses over the calendar year. The basic function of the account is to provide information on the financial position of farm establishments (that is, the amount of cash available to farm establishments to meet current obligations). Specifically, only cash flow pertaining to farm operators is included. Cash income and expenses of non-operator landlords and the personal portion of households are excluded.
This series does not include data on depreciation, which are available in the publication Farm Operating Expenses and Depreciation Charges: Agriculture Economic Statistics (21-012-X, free).
Available on CANSIM: table 002-0023.
Definitions, data sources and methods: survey number 5031.
The publication Farm Business Cash Flows: Agriculture Economic Statistics, June 2009, Vol. 8, no. 1 (21-018-X, free), is now available. From the Publications module of our website, under All subjects, choose Agriculture.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Stephen Boyd (613-951-1875; stephen.boyd@statcan.gc.ca), Agriculture Division.
