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Realized net income of Canadian farmers declined 41.0% from 2017 to $4.2 billion in 2018 on sharply higher costs and a slight increase in receipts. It was the largest percentage decrease in realized net income since 2006 and followed a 2.8% decline in 2017. Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind.
Revenue from livestock production edged down 0.1% to $25.1 billion in 2018.
Lower prices resulting from record high North American inventories pushed hog receipts down 8.9%. Exacerbating the surplus of hogs in the United States were retaliatory pork tariffs imposed on the United States by China and Mexico.
Farm operating expenses (after rebates) rose 6.2% in 2018 to $50.5 billion—the largest increase in six years. Higher feed prices contributed to a 9.4% rise in feed expenses, as tight feed grain supplies prior to the 2018 harvest supported prices. Machinery fuel expenses and interest expenses both rose over 18%.
November 26, 2019 /Statistics Canada/
https://www150.statcan.gc.ca
