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Canadian net farm income falls dramatically in 2018

It was the worst year for farm income since 2006
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farming net income dec 2019
Photo by Ron Walter

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 ronjoy@sasktel.net





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