After coming off of a record year, Agriculture and Agri-Food Canada is expecting farm incomes to remain high for Canadian farmers in 2015.
The 2015 Canadian Agricultural Outlook points to a strong future for the agricultural sector. The report provides an overview of the current situation in agriculture and some key long term drivers that will influence growth in the sector.
Growing strength in the cattle and hog industry, strong crop sales from high carry-in grain and oilseed stocks despite softening grain prices, and relatively stable input costs produced a record farm income in 2014 and will continue to sustain the agricultural economy in 2015.
Quick Facts
Canadian agricultural outlook highlights:
Average net worth per farm is expected to set new records of $2 million in 2014 and $2.1 million in 2015.
Farm-level net operating income in 2014 is forecast to be $78,139, also an all-time high.
Aggregate net cash income for 2014 is expected to reach $14 billion, 10% above the 2013 record.
For 2015, the preliminary forecasts suggest farm incomes will remain historically high at $13 billion.
The cattle and hog sectors enjoyed record prices in 2014 due to low North American supplies, and weakening feed grain prices also contributed to higher incomes.
Although total livestock receipts will not change significantly in 2015, cattle receipts will continue to benefit from tight markets and higher prices.
Exceptional market incomes over the past several years have contributed to lower program payments in 2014 and 2015 compared to previous years.
“The future for Canadian agriculture remains positive,” said Minister of Agriculture and Agri-Food Gerry Ritz.
Background
The 2015 Canadian Agricultural Outlook provides a forecast of the agricultural sector for the previous and current calendar year, and looks ahead 10 years based on the latest information.
The report is Agriculture and Agri-Food Canada’s measure of the strength of the sector and its affect to Canada’s economy.
This forecast represents an outlook for farm cash receipts, expenses and net incomes.
The report also highlights the trends that are expected to influence global agriculture and agri-food markets over the medium term (2015 to 2024). The report is prepared in consultation with provincial governments and Statistics Canada and can be used as a benchmark for governments and industry as they plan for the years to come.
