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Five years of farm revenues outpace expense changes in Saskatchewan

Saskatchewan farmers' cash receipts for the five years ended 2021 outpaced increases in expenses by more than two to one.
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Saskatchewan farmers' cash receipts for the five years ended 2021 outpaced increases in expenses by more than two to one.

Income revenues grew by 37.9 per cent to $19.46 billion during the period while gross operating expenses increased 16.5 per cent to $11.49 billion, according to Statistics Canada data.

About two-thirds of the increased cost pressure came in 2021

Across Canada income increased 17.96 per cent.

Family wages in this province rose a mere 8.6 per cent during the five years while non-family wages increased 13.5 per cent.

Significant expense increases were recorded in cash rents, up 17.8 per cent; fertilizer, up 39 per cent; farm fuel, up 11.3 per cent.

The increases in non-farm wages may reflect the trend to larger farms.

Farmers saved over $5 billion in payments to farm stabilization programs with $1.94 billion in 2021.

Direct payments to producers from farm safety net programs fluctuated from a low of $511 million in 2018 to $6.4 billion in 2019 and 2020 to $2.2 billion in 2021.

Depreciation expense, which amounts to tax-free money, and is intended for replacement of equipment and buildings, increased 40 per cent to $2.6 billion by 2021. The increases reflect more investment by farmers.

For the nine months ended October 2022 farm cash receipts in Saskatchewan amounted to $14.2 billion.

Ron Walter can be reached at ronjoy@sasktel.net
 

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