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Farm cash receipts, first quarter 2013

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Released: 2013-05-23

Farm cash receipts for Canadian farmers totalled $15.4 billion during the first quarter, up 7.5% from the same period in 2012.

Farm cash receipts include market receipts from the sale of crops and livestock as well as program payments. Receipts increased in every province except Prince Edward Island (-4.3%) and British Columbia (-3.0%). Increases ranged from 0.7% in Quebec to 13.4% in Manitoba.

Market receipts from the sale of crops and livestock were up 7.9% from the first quarter of 2012 to $14.6 billion. Crop receipts rose 13.2% to $9.1 billion, while livestock receipts edged up 0.2% to $5.5 billion.

The $1.1 billion increase in crop receipts was mainly the result of a rise in wheat receipts and an increase in the liquidation of deferred grain receipts. Wheat receipts, excluding durum, were up $430 million (+52.5%) while durum receipts rose $102 million (+64.9%), primarily the result of higher prices and the timing of funds received by producers. As of August 1, 2012, Western producers have the option to market their wheat and barley on the open market.

Crop receipts increased in all provinces except Prince Edward Island (-12.8%), where potato prices and marketings were down.

Grain and oilseed prices, which were already at relatively high levels due to increased demand and concerns over tight supplies, rose further during the latter half of 2012 as the drought in the United States worsened. Dry conditions in Eastern Europe and Australia further supported crop prices.

On the livestock side, cattle and calf receipts were $1.7 billion in the first quarter, up 0.5% from the same period in 2012. A 40.1% increase in the number of animals exported internationally more than offset declines in the number of animals exported interprovincially and slaughtered, and the 3.6% drop in average prices.

Hog receipts declined $56 million to $956 million, the result of both declining prices (-5.1%) and marketings (-0.4%).

In the supply-managed sector (dairy, poultry and eggs), farm cash receipts rose 1.8% to $2.4 billion. Poultry prices drove receipts up 10.6%, while egg prices boosted receipts 7.5%. Dairy receipts fell 2.8%, as both marketings and prices declined.

Program payments amounted to $810 million in the first quarter, unchanged from the same period in 2012. Declines in AgriStability and AgriInvest payments were offset by an increase in crop insurance payments.

In addition to first quarter farm cash receipts data, annual farm cash receipts and farm operating expenses data for 2012 were also released today.

Farm cash receipts for 2012 were $53.7 billion, up 7.5% from 2011.

Receipts rose in every province except Prince Edward Island (-2.2%) and New Brunswick (-1.0%), where a drop in potato marketings resulted in declines.

Crop receipts climbed 12.4% to $29.3 billion, generally as a result of higher prices for grains and oilseeds. Soybean receipts rose 41.0% over 2011 levels as both marketings and prices increased. Substantial increases in wheat including durum (+22.9%) and canola (+7.3%), as well as a 70.7% rise in the liquidation of deferred grain receipts, also contributed to the rise.

Livestock receipts increased 2.6% to $21.0 billion. Cattle and calf receipts rose 3.7% to $6.6 billion, despite a 4.0% decline in the number of head marketed, as average prices were up 7.5%.

Increases in the supply-managed sector bolstered the rise in livestock receipts, with poultry (+5.3%), dairy (+1.7%) and egg (+9.2%) receipts all increasing. Hog receipts moderated the increase in livestock receipts with a 2.3% drop over 2011 levels.

Program payments for 2012 were down 1.0% from 2011 to $3.4 billion.

Higher feed and fertilizer prices pushed farm operating expenses (after rebates) up 5.9% to $40.5 billion in 2012. A return to more normal levels of seeded acres in Manitoba and Saskatchewan after flooding in 2011 also contributed to the increase.


  Note to readers

Note that some of the increase in wheat and barley receipts for this crop year (August 2012 to July 2013) can be attributed to changes resulting from The Marketing Freedom for Grain Farmers Act. Under the provisions of this act, Western producers now have the ability to market their wheat and barley (destined for export or domestic human consumption) on the open market, receiving payment at the time of delivery, or, voluntarily through the Canadian Wheat Board (CWB). Under the CWB pool system, producers receive a partial or an initial payment at the time of sale. As the marketing of the crop progresses, adjustment and final payments are made. This expansion of marketing options available to producers has resulted in a change in the timing of when some producers are paid. As farm cash receipts are estimated on a cash basis, that is, when payment is received, this change has an impact on the data.

All data are in current dollars. Farm cash receipts measure gross revenue for farm businesses. They do not represent their bottom line, as farmers have to pay their expenses and loans and cover depreciation.

Data on farm operating expenses and depreciation charges for 2012, as well as farm cash receipts, farm debt outstanding, value of farm capital, value per acre of farm land and buildings, and value per head of livestock, were also released today and are now available in CANSIM. These data are subject to revision.

As a result of the release of data from the 2011 Census of Agriculture on May 10, 2012, estimates of farm cash receipts, operating expenses, net income, capital value and other data contained in the Agriculture Economic Statistics series are being revised, where necessary. The complete set of revisions will be released on November 26, 2013.

Farm cash receipts data for the second and third quarters of 2013 will be released on November 26, 2013. Data on net farm income for 2012 will also be released on November 26, 2013.

Table 002-0001: Farm cash receipts, annual.

Table 002-0002: Farm cash receipts, quarterly.

Table 002-0003: Value per acre of farm land and buildings, at July 1.

Table 002-0005: Farm operating expenses and depreciation charges, annual.

Table 002-0007: Value of farm capital, at July 1.

Table 002-0008: Farm debt outstanding, classified by lender, annual.

Table 002-0012: Farm income in kind, by item, annual.

Table 003-0025: Value per head of livestock, at July 1.

Definitions, data sources and methods: survey numbers survey number3437, survey number3471 and survey number3472.

Additional data tables are available from the Summary tables module of our website.

The May 2013 issue of Direct Payments to Agriculture Producers - Agriculture Economic Statistics, Vol. 11, no. 2 (Catalogue number21-015-X), is now available online. From the Browse by key resource module of our website, under Publications, choose All subjects, then Agriculture.

Contact information

For more information, contact us (toll-free 1-800-263-1136; infostats@statcan.gc.ca).

To enquire about the concepts, methods or data quality of this release, contact Stephen Boyd (613-951-1875; stephen.boyd@statcan.gc.ca) or Annette Laurent (613-951-2306; annette.laurent@statcan.gc.ca), Agriculture Division.

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