Declining commodity prices in 2018 cut farm profits in Canada by two-thirds, according to the annual Statistics Canada report.
Farm net income fell to $3.03 billion last year from 8.19 billion in 2017, even though farm cash receipts were the highest in five years.
Canadian farmers averaged just under one per cent return on investment which is little better than bank savings interest rates.
In 2017, farmers averaged 2.2 per cent return on investment, which is on par with the last five years.
What makes the farm income picture even bleaker: almost every dollar of net income last year was derived from selling off inventory of grain from the previous harvest.
In 2016 and 2017, farmers increased inventories by more than $1 billion each year.
Farm cash receipts have increased steadily from $52.25 billion in 2014 to $62.23 billion last year.
Capital investment in farming increased from $306.3 billion in 2014 to $343.8 billion last year.
Ron Walter can be reached at ronjoy@sasktel.net
