Balance sheet of the agricultural sector, December 31, 2020 (revised)
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Released: 2022-02-17
$571.5 billion
December 31, 2020
5.3% 
(period-to-period change)
$0.4 billion
December 31, 2020
16.9%
(period-to-period change)
$2.6 billion
December 31, 2020
3.6%
(period-to-period change)
$2.5 billion
December 31, 2020
6.2%
(period-to-period change)
$2.7 billion
December 31, 2020
4.6%
(period-to-period change)
$59.7 billion
December 31, 2020
5.7%
(period-to-period change)
$149.6 billion
December 31, 2020
5.5%
(period-to-period change)
$42.9 billion
December 31, 2020
5.0%
(period-to-period change)
$111.7 billion
December 31, 2020
4.3%
(period-to-period change)
$157.8 billion
December 31, 2020
4.9%
(period-to-period change)
$41.5 billion
December 31, 2020
8.7%
(period-to-period change)
Equity in Canada's farm sector totalled $571.5 billion as of December 31, 2020, up $28.8 billion (+5.3%) compared with the same date a year earlier. This was the third consecutive year where total liabilities (+5.5%) rose at a faster pace than total assets (+5.3%). Farm equity rose in every province, with Ontario (+5.5%) and Alberta (+4.9%) accounting for over one half of the national increase.
Chart 1
Year-over-year percentage change in the value of total assets, total liabilities and equity, 2019 to 2020
Total asset value increases due to the appreciation of farm real estate
The value of total assets rose $34.8 billion (+5.3%) to $686.7 billion. Farm real estate values, the largest component of farm assets, increased by $29.9 billion (+6.1%) to $521.8 billion. The value of farm real estate assets rose in every province, with Alberta contributing to over one-quarter of the national increase. Significantly higher commodity prices in the latter half of 2020, combined with strong demand for agricultural products and low interest rates all contributed to the increased value of farm real estate.
The value of farm machinery rose 3.9% to $59.7 billion, the largest annual percentage increase since 2016. Values of crop inventories rose 4.4% to $20.9 billion on higher prices, offsetting the 8.3% decrease in the value of poultry and market livestock inventory to $7.9 billion, its lowest level since 2012. Disruptions to the supply chain and at processing facilities as a result of the COVID-19 pandemic put downward pressure on cattle and hog prices in the greater part of the year.
Value of total liabilities continues to rise
The value of total liabilities increased $6.0 billion (+5.5%) to $115.3 billion, which was the smallest gain since 2014. Most provinces posted increases in 2020, with Quebec (+9.4%) leading the way, followed by Alberta (+6.0%).
Improved profitability and interest coverage in the agriculture sector
In 2020, the debt-to-asset ratio (0.17) and debt-to-equity ratio (0.20) remained unchanged from 2019. Nevertheless, both were at their highest levels since 2009. The higher ratios indicate that a growing share of productive agricultural assets are financed by creditors as opposed to farm owners.
Strong growth in net income in 2020, however, improved the return on assets and return on equity ratios from their 2019 levels. Both ratios are now near the 10-year averages, 0.025 and 0.022 respectively, following recent lows in 2018. Interest coverage, or the ability of a business to pay interest on debt, increased to 3.3 in 2020, from 2.7 in 2019, but still remained significantly below the previous 10-year average of 3.8.
Chart 2
Solvency ratio—debt, Canada, 2006 to 2020
Chart 3
Efficiency ratio—interest coverage, Canada, 2006 to 2020
Note to readers
The balance sheet of the agricultural sector provides the value of farm assets used in agricultural production, the liabilities associated with these assets and the farm sector equity as of December 31 for Canada and the provinces.
Assets and liabilities in the agriculture sector's balance sheet include those of farm businesses and non-operator landlords (for farm real estate assets leased to farm operators and the corresponding liabilities) and exclude the personal portion of farm households. This most closely reflects the assets and liabilities used in agricultural production.
The balance sheet of the agricultural sector integrates data already produced by Statistics Canada, such as farm debt, value of farm capital, livestock and crop estimates, farm product prices, and selected data from the Farm Financial Survey. These data are subject to revision.
For the latest information on the Census of Agriculture, visit the Census of Agriculture portal.
For more information on agriculture and food, visit the Agriculture and food statistics portal.
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; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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