Market receipts of Canadian farmers from the sale of crops and livestock totalled $30.5 billion between January and September, up 13.6% from the first nine months of 2007.
Receipts for crop producers rose 28.9% to $16.8 billion. The increase was due to higher prices resulting from tight world grain supplies and strong demand. Average price increases ranged from 20% for oats and almost 200% for durum wheat. While prices received by grain and oilseed producers rose substantially, the price of their inputs also increased. For example, the Industrial Product Price Index indicated that Canadian fertilizer prices rose 53% while diesel fuel increased 47% during the first nine months of 2008.
At the same time, livestock receipts fell 0.8% to $13.7 billion. Lower prices drove down revenues for hogs sold for domestic slaughter and for export. Overall, hog receipts fell 11.5%. Revenues for cattle and calf producers declined 3.8%, as a result of falling receipts from animals sent both for domestic slaughter and for feeding. More cattle were exported. Prices fell in all markets.
Both the hog and cattle sectors have been affected by several factors: rising input costs, a strong Canadian dollar, and the anticipation of the US Country of Origin Labelling Legislation with its uncertain effect on the market place. A combination of these factors has exerted downward pressure on prices.
A 6.3% increase in receipts from the supply-managed sector moderated the decline in the livestock receipts. Supply-managed commodities account for more than 45% of total livestock receipts. Poultry and egg receipts increased as a result of higher prices.
Farmers' revenue, which includes program payments, amounted to $33.6 billion between January and September 2008.
Note: Farm cash receipts measure gross revenue for farm businesses only. They do not represent their bottom line, as farmers have to pay their expenses and loans and cover depreciation. The net farm income for 2007 is available today and the preliminary information on net farm income for 2008 will be available in May 2009. Farm cash receipts include sales of crops and livestock products (except sales between farms within the same province), and program payments. They are recorded when the money is paid to farmers.
Every five years, following the Census of Agriculture, the methods and concepts used to estimate the farm income series are reviewed. Estimates for farm income integrate a wide variety of administrative and survey data from many diverse sources. Consequently, this review is used to improve our data sources, coverage and estimation methods.
As a result of this review, revisions back to 1997 are now available and are reflected in the data in this release. Estimates of receipts, income in kind, expenses, depreciation and value of inventory change have been revised, where necessary, resulting in changes to net cash, realized and total net income and value added for the sector.
Available on CANSIM: tables 002-0001 and 002-0002.
Definitions, data sources and methods: survey numbers, including related surveys, 3437 and 3473.
Data tables are available from the Summary tables module of our website.
The publications Farm Operating Expenses and Depreciation Charges: Agriculture Economic Statistics, Vol. 7, no. 2 (21-012-XWE, free), Value of Farm Capital: Agriculture Economic Statistics, Vol. 7, no. 2 (21-013-XWE, free), Farm Debt Outstanding: Agriculture Economic Statistics, Vol. 7, no. 2 (21-014-XWE, free) and Agriculture Value Added Account: Agriculture Economic Statistics, Vol. 7, no. 2 (21-017-XWE, free) are now available online. From the Publications module of our website, under Free Internet publications, choose Agriculture.
The following publications Farm Cash Receipts: Agriculture Economic Statistics, Vol. 7, no. 2 (21-011-XWE, free), Net Farm Income: Agriculture Economic Statistics, Vol. 7, no. 2 (21-010-XWE, free), Direct Payments to Agriculture Producers: Agriculture Economic Statistics, Vol. 7, no. 1 (21-015-XWE, free) will soon be available.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Estelle Perrault (613-951-2448; estelle.perrault@statcan.gc.ca), or Heather Miller (613-951-0309; heather.miller@statcan.gc.ca), Agriculture Division.
Table 1
Farm cash receipts
Table 2
Provincial farm cash receipts