Record Cash Receipts Recorded in Canada

OTTAWA - Feb 24/05 - SNS -- Cash receipts by Canadian farmers rose 7.5% above 2003 last year to reach a record CDN $36,769 million, for the increase in three years, according to Statistics Canada..

"The 2004 total was about $450 million higher than the previous record of $36.3 billion set in 2001," Statistics Canada said. "However, there was a major difference in the factors behind the high points.

"In 2001, the main engines of growth were livestock receipts, driven by strong cattle and hog markets, and program payments. Crop receipts grew only modestly as producers were hit by adverse weather conditions."

In 2004, however, the driving force was crop revenues, which increased 11.4% to $14.7 billion, surpassing the previous record set two years earlier. This total was 8.6% higher than the previous five-year average between 1999 and 2003.

Livestock receipts rose 6.3% to $17.2 billion in 2004, but this was just marginally higher than the previous five-year average of $17.1 billion. While receipts for hog producers hit a record high, revenues from cattle and calves fell to their lowest level since 1996 as the industry's BSE-related problems continued.

Farmers received $4.9 billion from program payments in 2004, up $37 million from the previous record in 2003.

Farm cash receipts are a measure of gross revenue for farm businesses. They do not account for expenses incurred by farmers. Cash receipts can vary widely from farm to farm because of several factors, including commodities, price and weather. In addition, the impact of the closure of the US border to Canadian cattle and beef on May 20, 2003 will continue to be reflected in farm financial statistics.

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