Canadian Farm Equity Improves

OTTAWA - Jul 7/04 - SNS -- Despite a decrease in cash flow in 2003, Canadian farmers finished the year with an increase in equity, according to data on the financial health of the agriculture sector released by Statistics Canada.

Farm sector equity in Canada was up 1.3% in 2003 to $187.1 billion, as farm asset values increased more rapidly than farm debt. Total farm assets rose by $5.5 billion to $230.9 billion in 2003, while total liabilities increased $3.0 billion to $43.9 billion. Agricultural sector equity (in current dollars) grew annually from 1987 to 2003.

After three consecutive annual increases, farm business operators had significantly less cash available for investment or withdrawal in 2003. After reaching a record of $11.9 billion in 2002, cash flows decreased by 26.2% to $8.8 billion in 2003. This figure remained below the previous five-year average (1998 to 2002) of $10.5 billion.

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