2003 Bad Year for Canadian Farms

OTTAWA - Nov 25/04 - SNS -- Last year was a bad year for Canada's agriculture industry, with net incomes from farming operations sinking to their lowest levels in 25 years on account of back-to-back droughts in 2001 and 2002 and the bovine spongiform encephalopathy (BSE) crisis.

Statistics Canada's reports net cash income tumbled 39.1% to $4.4 billion, the lowest level since 1978. Prairie farmers were hardest hit. Net cash income plunged 65.2% in Alberta, 61.5% in Saskatchewan and 45.0% in Manitoba. Farmers in only three provinces recorded gains: Nova Scotia, Quebec and British Columbia.

Despite record high program payments, lower receipts for crops and livestock dragged down total farm cash receipts, while farm operating expenses rose 3.1%.

Net cash income can vary widely from one farm to another because of factors such as commodities produced, prices and weather. It does not take into account depreciation or the value of on-farm inventory changes. For details on farm cash receipts in the first three quarters of 2004, see today's Farm cash receipts release.

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