Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Record breaking net farm income in 2011, says Agriculture Canada

Friday, March 2, 2012

by SUSAN MANN

Net farm income in the agricultural sector is forecast to hit a record-breaking $11.7 billion for 2011, says a senior Agriculture and Agri-Food Canada official.

The 2011 figure is a nearly 24 per cent increase over the record high of $9.5 billion set in 2010. It’s also a new record both in nominal terms and when adjusted for inflation, says the official who couldn’t be named under terms set by the federal agriculture department in releasing the information. For 2012, net farm income is forecast to be $11.2 billion.

The 2011 forecasts are based on information that was available as of mid December.
Officials released the rosy farm income picture during a telephone technical briefing held Monday morning to discuss two reports issued by the department – the farm income forecast and the medium term outlook report.

The official describes net farm income is a measure of the cash generated overall by Canadian farm businesses. It is money available to farmers to use as they choose, for example, to repay debt, invest or for other things.

For 2012, department officials are forecasting continued growth in farm income. Despite a projected pull back in grains and oilseeds prices, crop receipts are slated to climb slightly as planted acreage will increase and carry-in stocks are high, it says in the farm income forecast report. There will also be a small increase in livestock receipts. But high feed costs will restrain income gains for most livestock producers.

The farm income forecast, released annually, is a short-term outlook for the entire industry and each sector. The official says it’s the federal department’s measure of the financial strengths of the farming sector and its contribution to the Canadian economy. The medium term outlook is a projection of how current policy and market conditions influence farm incomes over time. Many of the factors currently influencing farm income will continue to be felt over the next 10 year, including a continued increase in the world demand for feed grains, rising petroleum prices, slow to moderate growth in the Canadian population and a Canadian dollar near par with the American dollar.

For 2011, average net operating income per farm will be $65,129, while for 2012 it’s projected to be $63,500. Net operating income is an estimate of the profit or loss of an individual farm operation, she says. The 2011 figure is 11 per cent higher than 2010 levels and 16 per cent higher than the average for the previous five years.

One of the other two other key measures of farm economic strength outlined in the report is net worth; assets minus liabilities. The net worth of the average Canadian farm is forecast to grow by five per cent in 2011 to reach $1.6 million and another five per cent in 2012, hitting $1.7 million.

The other key measure is farm families’ average total income, including all farm and non-farm income sources. In 2011, that’s projected to hit almost $119,000 or 11 per cent higher than 2010.

Despite difficult growing conditions last year in parts of the country and higher operating expenses driven by fertilizer, fuel and feed costs, there was an overall increase in farm income because of higher prices for hogs and grains and oilseeds, the report says. Disaster assistance and production insurance payments to Prairie farmers also contributed to income levels.

Canadian Federation of Agriculture president Ron Bonnett says from a financial perspective things are looking fairly sound for farmers.

In some areas there are going to be some fairly huge increases in farm income. “I know the livestock sector has had quite a turnaround, particularly in the beef sector where prices are quite a bit higher than they have been,” says Bonnett, noting he’s not surprised the federal agriculture department’s figures are showing a fairly substantial increase.

Bonnett says the figures showing increased net worth can be partly attributed to increases in land values. BF

Current Issue

March 2025

Better Farming Magazine

Farms.com Breaking News

Farmer Planting Decisions for 2025 Taking Shape

Thursday, March 13, 2025

As farmers across Canada prepare for the 2025 crop year, Statistics Canada says their planting decisions reflect a complex mix of factors including moisture conditions, crop rotation considerations, and market prices. Nationally, farmers are expected to plant more wheat, corn for... Read this article online

Grain Growers of Sounding the Alarm Over U.S. Tariffs

Monday, March 10, 2025

Not surprisingly, the Grain Growers of Canada (GGC) is raising concerns over the United States' decision to impose a 25% tariff on Canadian grain and grain products, a move that could jeopardize the livelihoods of family-run grain farms and lead to higher food prices for American... Read this article online

International Women’s Day – Angela Cammaert

Wednesday, March 5, 2025

As International Women’s Day approaches on March 8, Farms.com is asking women in ag about what they’d tell their younger selves about being a farmer, to give a piece of advice to young women entering the ag sector, and to highlight a woman in agriculture they consider a mentor or... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top