Total income of farm families, 2021
Released: 2024-01-26
The average total income of farm families operating a single farm in Canada rose by almost one-fifth (+19.1%) compared with 2020 to $214,089 in 2021 according to taxation records.
Average net operating income was up 41.5% to $99,786 in 2021, driven by a 26.4% increase in average net market income and a 111.8% rise in average net program payments. In 2021, the Government of Canada increased AgriRecovery funding to support farmers facing difficulties caused by drought and wildfires.
Average off-farm income rose by 4.7% to $114,303 in 2021. Off-farm income accounted for over half (53.4%) of the total income of farm families, down from 60.8% in 2020.
Chart 1
Average total income of farm families, by sector
Average total income of farm families in the incorporated sector rises over three times faster than that of those in the unincorporated sector
The average total income of farm families rose by 7.9% to $143,368 in the unincorporated sector in 2021, compared with a 28.9% increase to $365,484 in the incorporated sector. The larger growth in the incorporated sector was attributable to a 121.6% rise in average net program payments, which is much higher than the 81.8% increase in the unincorporated sector.
In 2021, the average off-farm income of farm families was $109,682 (+3.6%) in the unincorporated sector and $124,194 (+6.5%) in the incorporated sector. Farm families in the incorporated sector had more investment income than pension income, while farm families in the unincorporated sector had more pension income than investment income. Employment income was the most significant contributor to off-farm income.
Chart 2
Off-farm income composition of farm families in 2021
Farm families specializing in crops have the largest growth in average total income
The average total income of farm families operating crop farms grew by over one-fifth (+21.9%) in 2021 to $245,898. This increase was driven by growth in oilseed and grain (+26.3%), potato (+7.4%) and fruit and tree nut (+12.7%) farming. Potato farm families once again had the highest average total income, at $436,475 per farm family. Despite decreased production, average total income for oilseed and grain farm families increased because of higher canola and wheat prices and a large increase in AgriRecovery payments.
Chart 3
Average total and off-farm income of farm families, by farm type, 2021
The average off-farm income of farm families grew for every farm type in 2021. Fruit and tree nut farm families had the highest average off-farm income, at $144,488 per farm family. This was followed by farm families specializing in greenhouse, nursery and floriculture production; poultry and egg production; and potato production.
Prairie farm families earn the highest average total income in the country
In 2021, the average total income increased in every province. Nationally, farm families in Saskatchewan earned the highest average total income, at $271,945 per farm family, followed by farm families in Manitoba and Alberta. The higher income among farm families in the Prairies was driven by increases in AgriRecovery payments.
Chart 4
Average total income and off-farm income of farm families, by province, 2021
The average off-farm income of farm families also grew in every province in 2021. Farm families in British Columbia posted the highest average off-farm income nationally at $136,761. Farm families in British Columbia had higher average net non-farm self-employment income and average investment income compared with the rest of Canada.
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Note to readers
The estimates cover farm families involved in a single farm that is either unincorporated with total operating revenues of $10,000 or more or incorporated with total operating revenues of $25,000 or more.
Starting with the 2020 reference year, a farm is defined as an operation that produces at least one agricultural product and will report revenue or expenses for that agricultural production to the Canada Revenue Agency, as opposed to the previous definition based on the intention to sell agricultural commodities. Data users should use caution when comparing data from the previous years.
Note that not all farm family income earned from a farming operation is net operating income. Income reported as wages and salaries may have come from the farm. However, the investment income has been adjusted to exclude the actual number of dividends received by families from taxable Canadian farming corporations.
For statistical purposes, farm families who hold an interest in a partnership that has filed a T5013 Partnership Information Return are included in the incorporated sector, starting with reference year 2017. Prior to 2017, all farm families who were members of a partnership were included in the unincorporated sector.
Farm families may include more than one operator. Within an Agriculture Taxation Data Program framework, an operator is a person who reports revenue on their individual tax form as a result of a financial stake of a farm operation. The financial stake may be direct in the case of an unincorporated farm (generally T1) or indirect through shares for an incorporated farm (generally T2).
In this release, average always refers to average per farm family. Table 32-10-0213-01 also presents averages per farm family reporting.
For more information on farm family income components, see "Description of farm family income components."
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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