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Canadian net farm income falls dramatically in 2018

It was the worst year for farm income since 2006
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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