Farm income, 2013
The realized net income of agricultural producers rose 1.1% in 2013 to $6.4 billion, marking a fourth consecutive annual increase. The 2013 change reflected small increases in both farm cash receipts and operating expenses.
Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind.
Realized net income increased in every province except Quebec, Alberta and British Columbia. It more than tripled in Manitoba.
Farm cash receipts
Farm cash receipts, which include market receipts from the sale of crops and livestock, along with program payments, edged up 2.0% from 2012 to $54.8 billion in 2013.
Farm cash receipts rose in every province except Quebec and Alberta.
Market receipts were up 3.6% to $52.2 billion in 2013. Both crop and livestock receipts recorded small gains, marking the third consecutive year of increases for crop receipts and the fourth successive rise for livestock receipts.
Crop receipts rose 3.9% to $30.6 billion, as rising wheat receipts (including durum) and increased liquidations of deferred grain receipts more than offset a drop in canola receipts. Wheat receipts (including durum) rose 11.5% to $6.9 billion, on the strength of higher prices during the first half of 2013 and increased marketings. Canola receipts were down 11.0% to $7.3 billion as marketings fell 10.6%.
Manitoba posted the strongest gain in crop revenues, rising 25.3%. Nationally, crop receipts were up in every province except Alberta.
Revenue from livestock rose 3.2% to $21.5 billion in 2013. Tight supplies in North America continued to exert upward pressure on prices, leading to a 4.5% rise in cattle and calf receipts and a 5.4% increase in hog revenue. Receipts for supply-managed commodities (dairy, poultry and eggs) rose 1.5%, largely the result of small price increases.
Livestock receipts rose in every province except British Columbia. Saskatchewan recorded the largest increase at 12.2%, as international cattle and calf exports more than doubled in 2013.
Program payments declined 21.2% from 2012 to $2.7 billion. Decreases in AgriStability, provincial stabilization and crop insurance payments accounted for almost three-quarters of the decline.
Farm operating expenses (after rebates) edged up 1.8% to $42.2 billion in 2013. Decreases in fertilizer as well as livestock and poultry purchases were more than offset by generally modest increases in the remaining expense items. Pesticide expenses showed the largest dollar increase, rising 6.4% to $2.6 billion. This was followed by a 5.6% rise in interest expenses to $2.6 billion, as farm debt grew by 7.4%.
Total farm expenses were up 2.1% to $48.5 billion, as depreciation charges rose 4.1%.
Total farm expenses increased in every province except New Brunswick. The 0.4% decrease in that province was largely the result of a 10.3% drop in potato seeded acres, which, in turn, led to declining crop expenses. There were gains in the other provinces, ranging from 0.2% in Prince Edward Island to 3.2% in Manitoba.
Total net income
Total net income rose by $5.7 billion from 2012 to $12.0 billion in 2013. Every province except New Brunswick and Quebec recorded gains in 2013. Saskatchewan and Alberta saw the largest increases for the year.
Total net income adjusts realized net income for changes in farmer-owned inventories of crops and livestock. It represents the return to owner's equity, unpaid labour as well as management and risk.
The $5.6 billion rise in the total value of farm-owned inventories accounted for almost all of the increase in total net income in 2013. Record production of several field crops contributed to the significant growth of on-farm stocks.
Note to readers
Realized net income can vary widely from farm to farm because of several factors, including types of commodities, prices, weather and economies of scale. This and other aggregate measures of farm income are calculated on a provincial basis employing the same concepts used in measuring the performance of the overall Canadian economy. They are a measure of farm business income, not farm household income. Data are extracted from administrative files and derived from other Statistics Canada surveys and/or other sources.
Financial data collected at the individual farm business level from the Farm Financial Survey and Agriculture Taxation Data Program will soon be released. These data will help explain differences in the performance of various types and sizes of farms.
For details on farm cash receipts for the first three quarters of 2014, see today's "Farm cash receipts" release.
Table CANSIM table002-0001: Farm cash receipts, annual.
Table CANSIM table002-0003: Value per acre of farm land and buildings, at July 1.
Table CANSIM table002-0004: Agriculture value added account, annual.
Table CANSIM table002-0005: Farm operating expenses and depreciation charges, annual.
Table CANSIM table002-0007: Value of farm capital, at July 1.
Table CANSIM table002-0008: Farm debt outstanding, classified by lender, annual.
Table CANSIM table002-0009: Net farm income, annual.
Table CANSIM table002-0012: Farm income in kind, by item, annual.
Table CANSIM table003-0025: Value per head of livestock, at July 1.
Definitions, data sources and methods: survey numbers survey number3436, survey number3437, survey number3471, survey number3472, survey number3473, survey number5030 and survey number5214.
The November 2014 issues of Net Farm Income – Agriculture Economic Statistics, Vol. 12, no. 2 (Catalogue number21-010-X), and Direct Payments to Agriculture Producers – Agriculture Economic Statistics, Vol. 13, no. 2 (Catalogue number21-015-X), are now available online. From the Browse by key resource module of our website under Publications, choose All subjects then Agriculture.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; firstname.lastname@example.org) or Media Relations (613-951-4636; email@example.com).
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