Canada's Farm Take Home Pay Inches Upward

OTTAWA - Feb 27/07 - SNS -- Canadian farmers brought home more money for the sale of their agricultural production in 2006 than the previous year as a solid increase in income from crops offset declines in livestock and farm program income.

Even so, Statistics Canada said, "They remained slightly below levels prior to the bovine spongiform encephalopathy (BSE) situation. Gains in crop revenues were dampened by tumbling hog receipts."

Market receipts, the revenues from the sale of crops and livestock, reached $32.4 billion in 2006, up 1.9% from 2005, and just short of the peak set in 2002. This total was also 2.5% above the previous five-year average between 2001 and 2005, a period which included two years of droughts and the BSE situation.

Farmers received $14.5 billion in crop revenues, up 7.9% from 2005 and 4.6% above the previous five-year average. Higher deliveries, combined with stronger grain and oilseed prices, pulled crop receipts up to a new record.

In contrast, livestock receipts fell 2.5% to $17.9 billion as higher cattle and calf receipts were more than offset by a big drop in hog revenues. Livestock revenues were 0.9% above the previous five-year average.

Program payments totalled $4.5 billion in 2006, down 8.3% from the record high set in 2005 as the Farm Income Payment and BSE-related programs were winding down. Payments were 3.7% above the previous five-year average, and well above the average of the previous 10 years (1996 to 2005).

Total farm cash receipts (crop and livestock revenues plus program payments) reached $37.0 billion in 2006, marginally higher than in 2005, but a new record nevertheless. This was 2.6% above the five-year average.

Provincially, the largest increase in total receipts occurred in Saskatchewan (+6.0%), where significant gains were made in canola and wheat (excluding durum). The largest decline was in British Columbia (-2.5%), the result of lower revenues from crops, livestock and program payments.

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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