Farm Profits Rise As Operating Costs Fall, Says StatsCan

May 25, 2011 – Statistics Canada says farm profits soared last year as declining operating costs outpaced a slight decrease in receipts.

May 25, 2011 – Statistics Canada says farm profits soared last year as declining operating costs outpaced a slight decrease in receipts.
The agency says realized net farm income amounted to $4.5 billion in 2010, up $1.4 billion (46.1 per cent) from 2009.
The increase followed a 16.6 per cent drop in 2009.
Realized net income increased in every province except Alberta and New Brunswick, where declining receipts exceeded falling expenses.
Farm cash receipts, which include crop and livestock revenues plus program payments, fell 0.2 per cent to $44.4 billion in 2010, their second straight annual decline.
Market receipts, which include only revenue from the sale of crops and livestock, increased 0.1 per cent to $41.3 billion as a rise in livestock receipts barely offset declining crop receipts.
Receipts from supply-managed commodities (dairy, poultry and eggs) slipped 0.1 per cent as a 3.8 per cent drop in poultry more than offset increases in egg (up 1.1 per cent) and dairy (1.4) receipts.
Poultry prices fell for the first time since 2006.
Crop receipts fell 3.3 per cent to $22.4 billion, as wheat and barley receipts fell sharply on lower prices and marketings.
Livestock receipts increased 4.5 per cent to $18.9 billion on higher hog and cattle prices.
Despite higher crop insurance payments in Western Canada, program payments fell 4.7 per cent to $3.1 billion.
Farm operating expenses fell 4.2 per cent to $34.5 billion, their second straight annual decline. Lower fertilizer, feed and pesticides expenses more than offset higher labour and machinery fuel costs.