Farm cash receipts hit record
By Statistics Canada
Surging grain prices led to record high market cash receipts for Canadian producers in 2007, with dairy, poultry and egg producers seeing higher revenues, as well, according to numbers from Statistics Canada.
February 25, 2008
Ottawa- Market cash receipts for farmers hit a record high in 2007, boosted primarily by a surge in grain and oilseed prices. Dairy, poultry and egg producers received higher revenues. Meanwhile, cattle and hog farmers were squeezed by a combination of lower prices, higher feed costs, and the higher Canadian dollar.
Canadian farmers received a record $36.3 billion from the sale of crops and livestock in 2007, up 12.2% from 2006. This total was 14.9% above the previous five-year average. This period included the bovine spongiform encephalopathy (BSE) situation and some years of low commodity prices.
Receipts from crop sales hit a record $18.1 billion, up 25.0% over 2006 and 29.1% higher than the previous five-year average. Although grain and oilseed prices were the driving force for the increase, deliveries were strong as a result of producers drawing on their stocks to benefit from the high prices.
Livestock receipts grew 1.7% to $18.1 billion, the result of higher dairy and poultry prices and increased marketings. Cattle and hog revenues declined in the wake of lower prices, while exports of live animals to the United States climbed as the economics of feeding these animals supported this movement. Livestock revenues were 3.5% above the previous five-year average.
Program payments amounted to $4.1 billion, a 9.7% decline from 2006 and 9.5% below the previous five-year average. This was due in part to improved prices in the grains and oilseeds sector.
Total farm cash receipts, which include crop and livestock revenues plus program payments, reached a record $40.4 billion in 2007. This level was 9.5% above 2006 and 11.8% higher than the five-year average. It was the first time that receipts surpassed the $40-billion mark.