Canada - Farm Cash Receipts

OTTAWA - Aug 24/06 - SNS -- Cash receipts by Canadian farmers declined during the second quarter of 2006 on the basis of weaker livestock and crop sales.

Statistics Canada reports farmers received $15.4 billion in market revenue between January and June, down 1.1% from the same period last year. This total was 1.0% below the previous five-year average between 2001 and 2005.

Livestock receipts fell 1.1% to $8.8 billion, 0.4% below the previous five-year average. Higher cattle and calf receipts, driven by exports, were offset by a substantial decline in hog revenues.

Crop revenues of $6.6 billion in the first half of 2006 were 1.0% below the same period last year and 1.7% below the previous five-year average. Abundant world grain supplies and a strong Canadian dollar continued to depress prices.

Farmers received $2.6 billion in program payments, down 21.7% from the first-half record high set last year. However, the amount paid to farmers through various programs remained 17.2% above the previous five-year average.

Provincially, farm cash receipts fell in Ontario, Manitoba, Saskatchewan and Alberta, with declines ranging from 8.2% to 5.4%. They remained nearly flat in Newfoundland and Labrador, Nova Scotia, Quebec and British Columbia, while increasing in Prince Edward Island and New Brunswick.

Farm cash receipts provide a measure of gross revenue for farm businesses. They do not account for expenses such as wages, fuel and feed costs incurred by farmers. Cash receipts can vary widely from farm to farm because of several factors, including commodities, price and weather.

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