Ottawa – For Canada’s agricultural sector 2014 was a strong year. The good news is that the trend is likely to continue for 2015.
Agriculture and Agri-Food Canada has released its 2015 Canadian Agricultural Outlook, a report that provides a forecast of the ag sector for the previous and current calendar year. It also looks ahead 10 years based on the latest available information.
This year’s report shows growing strength in the cattle and hog industry, strong crop sales resulting from high carry-in grain and oilseed stocks despite softening grain prices, and relatively stable input costs. All these factors produced a record farm income in 2014 and will continue to sustain the agricultural economy in 2015.
Here are more highlights:
- The 2015 Canadian Agricultural Outlook projects that net incomes for Canadian farmers will reach record levels in 2014.
- Aggregate net cash income for 2014 is expected to reach $14 billion, 10% above the 2013 record.
- Farm-level average net operating income is forecast to be $78,139, also an all-time high.
- Average net worth per farm is expected to set new records of $2.0 million in 2014 and $2.1 million in 2015.
- For 2015, the preliminary forecast suggests that farm incomes will be down moderately, but remain historically high at $13.0 billion.
- Average total income of farm families, which includes the family’s share of net operating income from the farm and other family income, is projected to reach $131,595 in 2014 and $134,931 in 2015.
- In the latter part of 2014, grain and oilseed prices declined following an unprecedented corn and soybean harvest in the U.S., but Canadian sale volumes remained strong, partially offsetting these price declines. Grain and oilseed sales increased as farmers carried forward a large portion of their record 2013 crop into 2014. A larger than average 2014 harvest also supported grain and oilseed sales. Global prices for grains and oilseeds are projected to increase over the medium term.
- The cattle and hog sectors enjoyed record prices in 2014 due to low North American supplies, and weakening feed grain prices also contributed to higher incomes. Although total livestock receipts will not change significantly in 2015, cattle receipts will continue to benefit from tight markets and higher prices.
- Exceptional market incomes over the past several years have contributed to lower program payments in 2014 and 2015 compared to previous years.For more information, click here.