Farm cash receipts, January to September 2016

Released: 2016-11-29

Farm cash receipts for Canadian farmers totalled $43.5 billion in the first three quarters of 2016, down 0.2% from the same period in 2015. Year-over-year gains in the first (+5.9%) and second (+2.5%) quarters of 2016 were not enough to offset an 8.8% decline in receipts during the third quarter.

Farm cash receipts, which include crop and livestock revenues as well as program payments, decreased in six provinces compared with the first three quarters of 2015. Declines ranged from 0.3% in Ontario to 3.7% in Nova Scotia.

Farm cash receipts increased in Quebec (+6.4%), New Brunswick (+3.7%), Manitoba (+0.2%) and Prince Edward Island (+0.2%). Higher receipts in Quebec (+$384 million) were not enough to offset the declines in Alberta (-$253 million) and Saskatchewan (-$142 million).

Market receipts (revenues from the sale of crops and livestock) edged up 0.1%, as a 5.9% increase in crop receipts offset a 7.0% decline in livestock receipts.

Livestock receipts

Following six consecutive year-over-year increases for the January-to-September period, livestock receipts declined $1.3 billion as cattle and calf prices fell. Livestock receipts were down in all three quarters of 2016 compared with the same quarters of 2015.

Cattle and calf receipts were the main contributor to the decrease in livestock receipts, declining $1.5 billion or 19.4% to $6.3 billion, as prices fell sharply. Increased cattle inventories in both Canada and the United States have relieved some of the pressure on prices, which had begun rising in the spring of 2013 as North American supplies tightened. Cattle and calf prices declined 20.9% from January-to-September 2015, but remained 15.6% above the previous five-year average for the same period.

Lower fur prices (-40.3%) also added to the decline in livestock receipts, as fur receipts were down $70 million (-41.5%).

An increase in receipts from the supply-managed sectors (dairy, poultry, eggs) of $232 million, somewhat moderated the decline in livestock receipts. Dairy (+1.7%), chicken (+3.4%) and egg (+8.3%) receipts all rose, mainly due to increased marketings.

Hog receipts rose 1.9% as both prices and marketings edged up.

Crop receipts

Crop receipts for the January-to-September period rose $1.4 billion from the same period a year earlier. Higher canola receipts were the primary contributor to the national increase, combined with higher dry pea receipts and increased liquidations of deferred grain receipts.

Receipts for canola, the top grossing crop for the period, rose 12.0% to $6.7 billion, as both marketings (+8.7%) and prices (+3.1%) were up. Dry pea receipts increased 63.3% to $870 million, as both marketings (+27.9%) and prices (+27.7%) rose significantly. Strong demand for dry peas and lentils pushed prices higher beginning in late 2014, the result of increased demand from India, where growing conditions were poor. Prices continued to rise until peaking in the second quarter of 2016, as world production began to recover.

Increased liquidations of deferred grain receipts of $263 million (+16.1%) added to the rise in crop receipts. Corn and soybean receipts both rose, the result of strong marketings during the first half of 2016.

An 8.2% decline in wheat excluding durum receipts moderated the gain in crop receipts, as did a $110 million increase in deferred grain receipts for the January-to-September period. Lower barley and durum receipts also moderated the overall rise.

On a year-over-year basis, crop receipts rose by $1.2 billion (+14.6%) in the first quarter and were $730 million (+10.5%) higher in the second quarter. These gains more than offset a $555 million (-7.0%) decrease in the third quarter, when marketings and prices declined for most major grains and oilseeds.

Program payments

Program payments were down 7.5% from the first three quarters of 2015 to $1.4 billion. Lower crop insurance payments (-26.6%) were the main reason for the drop for 2016. Higher provincial stabilization payments in Quebec tempered the national decrease.

Products

Summary tables are also available.

Contact information

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; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).