Net farm income shows sizable jump in 2020 according to Stats Can

StatsCan says realized net income for Canadian farmers rose 84 percent in 2020.

Strong growth in sales outpaced slightly higher expenses.

The increase follows a 10.5 percent gain in 2019 and a 33 percent decline in 2018.

Excluding cannabis, realized net farm income was up 72 percent at 9.5 billion dollars.

StatsCan says rising crop receipts from strong export demand, combined with lower machinery fuel and fertilizer prices, pushed realized net farm income higher.

Saskatchewan accounted for over 60 percent of the national increase, while realized net income declined in B.C. and the maritimes.

Farm cash receipts had the biggest gain since 2012 with crop revenue up 15 percent to 42.4 billion dollars.

Canola receipts jumped 19 percent, with rising exports to China and shipments almost doubled to the European Union.

Lentil receipts more than doubled in 2020 as prices rose 39 percent and marketings jumped almost 50 percent.

Strong demand for lentils from Turkey and India boosted exports.

Farm cash receipts for wheat rose almost 11 percent with marketings up 12 percent.

Demand for flour rose as more Canadians cooked at home during the pandemic.

China also had strong demand for feed grain.

Livestock receipts dropped 1.1 percent last year to 26.3 billion dollars as the pandemic disrupted meat processing supply chains and forced temporary meatpacking closures.

Cattle receipts were down 5 percent last year with prices down 3 percent and marketings down 2 percent.

Hog receipts rose 1 percent last year due to strong export demand for pork.

Crop insurance payments rose 21 percent, due mainly to crop damage in 2019 and poor harvest weather that year.

Overall, total net farm income rose 2.6 billion dollars to 8.1 billion, with increases in Saskatchewan and Ontario accounting for over 60 percent of the national rise.

In Saskatchewan, total net income was 2.9 billion dollars, while across Canada, the total was 8 billion dollars.

Western Wheat Growers secretary Jim Wickett is a bit surprised at the increase in farm income in 2020.

Wickett did not expect such a sizable jump but says there was strong demand for food during the pandemic.

He points out farmers are facing higher costs with fuel and fertilizer prices up significantly this year.


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