Canadian farm cash receipts drop nearly 10 per cent for first quarter of 2014

Monday, May 26, 2014

By JIM ALGIE

Dramatic, 20 per cent-plus increases in farm cash receipts for cattle and hogs during the first quarter of 2014 failed to offset the effects of lower program payments and lower prices for major grains and oilseeds, Statistics Canada data shows.

Farm cash receipts for Canadian farmers totalled $14.2 billion during the first quarter, down 9.6 per cent from the same period in 2013, the federal agency reported, Tuesday. Crop receipts fell 17.6 per cent to $7.8 billion when compared with the first quarter of 2013.

Meanwhile livestock receipts for the same period rose 23.2 per cent to $2 billion for cattle and calves and 21.2 per cent to $1.2 billion for hogs. That followed a 23.1 per cent increase in prices for cattle and calves when compared with the first quarter of 2013. A 22.5 per cent hog price increase more than offset a 4.9 per cent decrease in the number of animals marketed, a StatsCan statement published on its website says. Sheep and lamb receipts during the period grew 17.5 per cent to $34 million.

Farm cash receipts during the first quarter of 2014 fell in every province except Quebec, British Columbia and Nova Scotia, which posted increases of 3.7 per cent, two per cent and 0.3 per cent, respectively.

Ontario showed $2.519 billion in farm cash receipts for the first quarter of 2014, down 5.4 per cent from the same quarter last year. That places Ontario third for total farm receipts in the quarter among 10 Canadian provinces behind Alberta at $3.260 billion and the leading province of Saskatchewan with $3.710 billion. Quebec stands fourth at $1.828 billion.

The $1.7 billion decrease in crop receipts responds mainly to lower prices for major grains and oilseeds, Statscan analysis says. Average prices for canola fell 26.2 per cent. Average wheat prices dropped 26.2 per cent, offsetting a 10.5 per cent increase in marketings and generally larger world supplies.

“In supply managed sectors (dairy, poultry, eggs), farm cash receipts decreased 1.2 per cent in the first quarter of 2014 compared with the same period in 2013,” mainly because of lower poultry prices, the report said. A commodity specific table published with the statement shows dairy receipts up 1.0 per cent while receipts for poultry and eggs fell 4.7 per cent.

Government program payments also fell during the first quarter of 2014. Payments to farmers of $466 million between January and March of this year represent a decline of 43.8 per cent from the same period last year and less than at any time since 2000. That’s primarily because of a decrease this year in crop insurance payments. In the first quarter of 2014, crop insurance payments totalled $163 million, down from $519 million during the same period of 2013.

The decline in farm cash receipts between January and March of this year follows three consecutive, year-over-year increases for the period, Statscan says.

Among crops identified in the data, barley, rye, oats and wheat all showed reductions of 30 per cent or more. Total receipts for wheat (not including durum) fell 30.1 per cent to $1.143 billion, reversing the prevailing trend during the same period of 2013 when wheat receipts rose 50.8 per cent.

Canola receipts fell 26.4 per cent to $1.637 billion, down from $2.226 billion in 2013. Corn receipts fell 25.5 per cent to $534 million. Soybean receipts dropped 9.1 per cent to $511 million. BF