Net farm income fell by over half in 2018 to $3.63 billion from $8.3 billion, according to Statistics Canada’s annual report.
It was the worst year for net farm income since 2006.
Income would have been less, except for a $488.5 million reduction of inventories of grain and livestock.
A $5.1 billion increase in operating expenses accounted for most of the decline in net income This was the largest increase in expenses since 2012.
National farm cash receipts increased $218 million to $62.4 billion.
In Saskatchewan net farm income fell $940 million to $1.777 billion. The reduction came from nearly $480 million increase in operating expenses and changes in depreciation.
Farm cash receipts in this province fell $144 million.
Neighbouring Alberta saw net farm income fall by 82 per cent from 2,008 billion to $346 million.
In Manitoba, net farm income dropped 45 per cent to $671 million.
Ontario farmers witnessed a 74 per cent decline to $270.6 million while Quebec farms saw a 51 per cent reduction in net income to $548 million.
Realized net farm income, the data used in Statistics Canada’s press release, only fell 45 per cent to $3.9 billion.
Ron Walter can be reached at email@example.com