Agriculture and Agri-Food Canada has released its 2016 Canadian Agricultural Outlook – a report that provides a forecast of farm income in the agricultural sector for the previous and current calendar years (2015 and 2016), and looks ahead 10 years to longer-term trends.
The 2016 Canadian Agricultural Outlook sees farm incomes reaching record levels for Canadian farmers in 2015, and remaining above average for 2016. According to an Agriculture and Agri-Food Canada media release, a projected increase in both crop and livestock receipts is contributing to these strong income levels for the sector in both 2015 and 2016.
As outlined in the Agriculture and Agri-Food Canada media release, highlights of the 2016 outlook include:
• Net cash income in 2015 is estimated to increase by 6 per cent over 2014, reaching a record $15.0 billion. A decline of 9 per cent to $13.6 billion is expected in 2016, still 14 per cent higher than the 2010-2014 average.
• Average farm-level net operating income in 2015 is forecast to be $77,287, which is 8 per cent higher than 2014.
• Average net worth per farm is expected to reach $2.7 million in 2016.
•The low Canadian dollar has improved the competitiveness of Canadian agriculture and food products in export markets, contributing to higher farm cash receipts.
• Livestock receipts in Canada are expected to increase by 2 per cent to $26.2 billion in 2015.
• Crop receipts are expected to have increased 2 per cent to reach $30.7 billion in 2015, and remain virtually unchanged at $30.6 billion in 2016.
• Lower crude oil prices are significantly reducing farmers’ diesel and gasoline expenses.
• Strong conditions over the past several years have contributed to a decline in program payments in 2015, down to $2.1 billion.
“Canada’s agriculture and food industry is well positioned for continued success,” says Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food. “The Government of Canada will support the continued growth of the sector by working closely with our provincial and territorial partners, investing in research and innovation here at home, and working to open new markets around the world.”