Canadian farmers should expect another good year for commodity prices, but not as good as the year just past.
Farm Credit Canada senior economist J.P. Gervais came to that conclusion in his annual farm outlook report.
“While 2022 brought its fair share of challenges for Canadian agriculture, one bright spot has been the healthy trend in farm cash receipts. We estimate they reached a record high of $94.5 billion in 2022, an increase of 14.1 per cent over 2021,” he said.
“Looking forward, we expect farm cash receipts to continue growing in 2023, although at a more moderate pace of 4.6 per cent. Robust farm cash receipts would be a positive development in 2023 to offset input costs that are anticipated to stay elevated throughout the year.’’
Breaking down cash receipts by region, Saskatchewan will have a 7.6 per cent increase to $29.24 billon — the highest of any region.
Last year, Saskatchewan’s eight per cent increase was the second lowest percentage change of any region. The Atlantic provinces were highest at 20.5 per cent, Alberta at 19.1 per cent and Manitoba at the low end with 4.5 per cent.
Total crop receipts in Saskatchewan will increase 7.6 per cent compared with eight per cent in 2022.
Canola income will be up 14.2 per cent; wheat and barley are both up 4.5 per cent.
Cattle receipts will increase by 3.5 per cent, about one-quarter of last year’s rate. Hog receipts will go up 7.7 per cent.
Gervais said last year’s FCC predictions were out. On grains the estimate was 12.4 per cent less than the actual with a .3 per cent inaccuracy on cattle and 7.7 per cent out on hogs.
Ron Walter can be reached at email@example.com