2018 realized net farm income for Canadian farmers fell 45 percent from 2017, the biggest annual drop since 2006. Statistics Canada released the data this week that shows realized income for the year at C$3.9 billion, falling on stagnant farm cash receipts against significant increases in feed, fuel and interest costs. Farm income fell just 2.8 percent in 2017 from 2016.
AgCanada reports realized net income is the difference between a farmer’s cash receipts and operating expenses, minus depreciation, plus income in kind — not to be confused with “total net farm income,” defined as realized net income adjusted for changes in farmer-owned inventories of crops and livestock. Total net farm income dropped to C$3 billion in 2018, decreasing across all provinces, mainly on lower on-farm stocks of barley, corn, non-durum wheat and soybeans and lower cattle and calf inventories.
Farm expenses were up in every province, totaling C$50.6 billion, up 6.5 percent from 2017 for the largest percentage increase since 2012.