Canadian Farm Cash Receipts Up in 2005

OTTAWA - Feb 27/06 - SNS -- Market cash receipts for Canadian farmers rose 1.1% in 2005, according to Statistics Canada, as declines in crop revenues were more than offset by gains by the livestock industry, recovering from the BSE (mad cow disease) situation. Market cash receipts represent revenues from the sale of crops and livestock.

Farmers received $32.0 billion in gross revenue from markets, up 1.1% from 2004. This level was 2.2% above the previous five-year average between 2000 and 2004, but 2.0% below the peak in 2002.

Livestock receipts rose to levels closer to historic averages, as the cattle and calf sector continued to recover from the BSE-affected market. Livestock revenues rose 7.4% to $18.4 billion, up 5.2% compared to the previous five-year average.

In contrast, crop receipts fell 6.2% to $13.6 billion, down 1.6% from the previous five-year average. Canadian cash crop growers have seen their revenues fall despite higher deliveries. Receipts for major grains and oilseeds dropped 13.0% from 2004 and 11.6%, compared to the previous five-year average. Abundant world grain supplies (including lower quality domestic grains from the 2004 harvest) and a strong Canadian dollar have continued to depress prices; in some cases, these prices have fallen to near-record lows.

When program payments were combined with crop and livestock revenues, total farm cash receipts hit a record $36.9 billion in 2005. This was up 1.1% from 2004, and 4.8% higher than the previous five-year average.

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