Ottawa, Ontario -- 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 was released today, pointing to a strong future for the agricultural sector. The report provides an overview of the current situation in Canadian agriculture and some of the key longer term drivers that will influence the growth of the sector.
Growing strength in the cattle and hog industry, strong crop sales resulting 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.
Canadian Agricultural Outlook Highlights:
- Average net worth per farm is expected to set new records of $2.0 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 $14.0 billion, 10% above the 2013 record.
- For 2015, the preliminary forecasts suggest that farm incomes will remain historically high at $13.0 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.