Third quarter farm cash receipts show increase
By Statistics Canada
Despite the short-term decline in commodity prices, the overall picture for farming is a bright one, including improved farm cash receipts for January to September, with a 13.6 percent increase compared to the same period in 2007.
November 24, 2008
Market receipts of Canadian farmers from the sale of crops and livestock totalled $30.5 billion between January and September, up 13.6 percent from the first nine months of 2007.
Receipts for crop producers rose 28.9 percent to $16.8 billion. The increase was due to higher prices resulting from tight world grain supplies and strong demand. Average price increases ranged from 20 percent for oats and almost 200 percent for durum wheat. While prices received by grain and oilseed producers rose substantially, the price of their inputs also increased. For example, the Industrial Product Price Index indicated that Canadian fertilizer prices rose 53 percent while diesel fuel increased 47 percent during the first nine months of 2008.
At the same time, livestock receipts fell 0.8 percent to $13.7 billion. Lower prices drove down revenues for hogs sold for domestic slaughter and for export. Overall, hog receipts fell 11.5 percent. Revenues for cattle and calf producers declined 3.8 percent, as a result of falling receipts from animals sent both for domestic slaughter and for feeding. More cattle were exported. Prices fell in all markets.
Both the hog and cattle sectors have been affected by several factors: rising input costs, a strong Canadian dollar, and the anticipation of the US Country of Origin Labelling Legislation with its uncertain effect on the market place. A combination of these factors has exerted downward pressure on prices.
A 6.3 percent increase in receipts from the supply-managed sector moderated the decline in the livestock receipts. Supply-managed commodities account for more than 45 percent of total livestock receipts. Poultry and egg receipts increased as a result of higher prices.
Farmers' revenue, which includes program payments, amounted to $33.6 billion between January and September 2008.