Canadian farmers had a record financial year in 2011 as income increases far outstripped cost increases, and although 2012 will see some decrease, returns will be strong, says Agriculture Canada.

Manitoba is the prairie exception.

In 2011, Manitoba farm sector income dropped 32 percent in the face of falling receipts and rising costs. This year, realized net income (receipts minus costs and depreciation) is projected to fall 95 percent to provide a provincial realized net income of just $21 million

Elsewhere, the prairie picture is one of a booming industry.

Based on continued strong grain, oilseed and livestock prices and high program payments, Saskatchewan agriculture was by far the most profitable in Canada last year, according to figures and analysis published by Agriculture Canada economists yesterday.

Realized net farm income in the province last year at $2.37 billion was 21 percent higher than the 2010 record, according to the numbers.

Even with a projected 20 percent decline in realized net income in 2012 to $1.9 billion, Saskatchewan agriculture still will perform better than any other province.

Alberta, though just a fraction of Saskatchewan’s farm income, is projected to have a boom year in 2012 on the basis of strong livestock prices. Realized net income is predicted to rise 42 percent to $703 million this year.

Both Ontario and Quebec are projected to have increased farm profits as well.

Agriculture Canada analysts say that despite an expected weakening in grain prices over the next several years, they will stay above historic highs.

Hog prices, after strengthening in the past several years, are expected to decline, and farmer income with them.