Canadian farmers Generate More Revenue

OTTAWA - May 289/07 - SNS -- Total farm cash receipts rose 8.6% from year earlier levels in the first quarter of the 2007 calendar year, while income generated from the sale of agricultural production rose 13.0%, according to Statistics Canada.

The gain was mainly due to higher grain and oilseed prices as global supplies tightened and the biofuel industry continued to expand.

Farmers received $8,537 million in market receipts, a record for a first quarter; while total income, including government support payments, came in at $9,889 million.

Crop receipts reached $3.8 billion between January and March, 28.8% above the same period last year and 17.1% above the previous five-year average. In 2006, first-quarter crop receipts had fallen to their lowest level in a decade.

Livestock receipts increased 2.7% from the first quarter of 2006 to $4.7 billion. This total was 4.4% higher than the previous five-year average. An improvement in hog prices from their recent lows was the main factor behind the rise in livestock receipts.

Farmers received $1.4 billion in program payments during the first quarter, down 12.8% from the first quarter of 2006, as crop conditions improved and several programs wound down. Despite this decrease, program payments remained 3.9% above the previous five-year average.

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