STATCAN: Realized net income for Canadian farmers fell 7.6% to $11.8 B in 2022

Realized net income for Canadian farmers fell 7.6% to $11.8 billion in 2022, as growth in expenses outpaced the rise in farm cash receipts. The decrease in 2022 followed a 69.6% gain in 2021 and a 101.6% increase in 2020. Excluding cannabis, realized net income in 2022 was down 5.9% to $11.8 billion.

Realized net income is the difference between a farmer’s cash receipts and operating expenses, minus depreciation, plus income in kind

In 2022, total farm cash receipts increased by 14.6% compared with 2021. Higher prices resulted in Canadian farmers receiving more receipts for both crop (+$7.1 billion) and livestock (+$3.6 billion) products in 2022. However, an 18.6% increase in total expenses pushed realized net income lower. Farmers faced higher costs for key agricultural inputs, including fertilizer, feed and fuel.