Canadian Farm Cash Receipts Declines

OTTAWA - Feb 25/03 - SNS -- Canadian farm cash receipts dropped for the first time in four years as gains from selling grains and oilseeds were more than offset by steep losses in the livestock sector, according to the latest Statistics Canada report.

In total, Canadian farmers received CDN $35.7 billion from livestock sales, crop sales and program payments. This was a decline of 1.5%, or $560 million, from the record $36.3 billion in 2001.

Livestock revenues fell for the first time since 1999. Only crop receipts increased, somewhat surprising at first glance, given severe drought conditions that hammered crops in parts of western Canada.

Crop receipts rose in all provinces, except in two of the Prairie provinces. In Saskatchewan, they fell 5.3%, and in Alberta, 7.9%. In both cases, production of wheat, barley and canola was hit hard by drought.

Nationally, farmers received $18.0 billion in livestock receipts, down 4.5% from 2001. Crop receipts rose 4.7% to $14.3 billion. Program payments fell 9.3% to $3.4 billion, even though crop insurance payments hit record levels in response to poor growing conditions and to an increase in the acreage of crops insured.

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