Analysis

Value of farm capital increased in 2008

In 2008, Canada’s farm capital value increased by 8.0% to $283.7 billion, continuing a long upward trend which began in 1993. The increase in the value of land and buildings more than offset the decrease in the value of livestock and poultry.

British Columbia accounted for the largest percentage increase in total capital value, rising by 13.1%, while Newfoundland recorded the smallest percentage increase of 1.7%. Prince Edward Island and New Brunswick recorded the only decreases of 2.8% and 2.4% respectively.

The value of land and buildings, which accounted for 82.1% of total farm capital value, rose 10.0% from the 2007 level to $232.8 billion. The value per acre for Eastern Canada and Western Canada averaged $3,579 and $1,020 respectively.

The value of machinery and equipment, which accounted for 13.3% of total farm capital, increased 2.9% to $37.7 billion. The value of tractors, combines and other farm machinery, the largest component of the value of machinery and equipment, increased 3.5%, while trucks and autos increased only slightly.

The value of livestock and poultry, which accounted for the remaining 4.7% of total farm capital value, decreased 8.7% to $13.2 billion. Cattle and calves, the largest component of the value of livestock and poultry, decreased 9.2% from 2007 to $11.3 billion, as inventories declined reflecting factors such as market uncertainty and rising input costs. The value of pigs fell 12.1% from 2007 to $1.2 billion, and was 19.4% below the previous five-year average as farm inventories declined for the third consecutive year. Hog numbers declined as a consequence of rapidly rising input costs, weak slaughter prices, and uncertainty concerning market access due to the Country of Origin Labeling (COOL) legislation in the United States. The value of poultry increased 13.8% to $448.9 million as prices increased.