At first glance, 2014 farm income figures released by Statistics Canada this week seem to be telling two different stories.
The agency says the realized net income of Canadian farm producers last year went up 23 per cent.
However, it says the total net income was down over 60 per cent.
Statscan defines realized net income as the difference between a farmers cash receipts and operating expenses, minus depreciation, plus income in kind.
Total net income, on the other hand, is realized net income adjusted for changes in farmer-owned inventories of crops and livestock.
According to Statistics Canada, total net income represents the return to owner’s equity, unpaid farm labour, management and risk.
It says inventory changes were the biggest driver in the drop in total net income in 2014.
While the national total net income dropped over 60 per cent, Ontario’s decline was about 12 per cent.
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