MarketsFarm — Equity in Canada’s farm sector increased by 3.6 per cent in 2018, hitting $522.2 billion, according to a report Thursday from Statistics Canada. The growth was well below the 6.4 per cent increase reported the previous year, and continued a trend of slower growth since 2013. Realized net farm income was down by […] Read more
Farm equity growth slows in 2018
China, drought, debt shake Canadian farm finances
Winnipeg/Ottawa | Reuters — For years, the financial stability of Canadian farmers was the envy of their U.S. counterparts, but rising costs, drought and a dispute with China have weakened their bottom lines. Net incomes plunged last year, and that setback was followed in March by China’s halting purchases of canola, Canada’s biggest crop. Now […] Read more
Alberta producers see incomes drop by $1 billion last year
Flat revenue, higher expenses squeeze farmers
Reading Time: 4 minutes No matter how you measure it, Canadian and Alberta farm income took a big, double-digit, hit in 2018. The two biggest culprits were flat revenues, in part because of trade restrictions, and higher expenses, including for commercial feed, interest and machinery fuel. For 2018, Canadian farm net cash income fell 20.7 per cent to $11.6 […] Read more
New Trump aid plan for U.S. farmers to rely on direct payments
Washington | Reuters — The Trump administration’s second package of aid for U.S. farmers hit by the trade war with China is expected to have a similar structure to last year’s program, using direct payments and commodity purchases, industry sources briefed on the plan said. The U.S. Department of Agriculture is still finalizing the plan, […] Read more
Farm income falls in 2018, but holding for now
Canadian farm income fell on market volatility, but export growth is still likely, says FCC
Reading Time: 2 minutes Final figures aren’t available yet but all signs suggest farm income in 2018 was clipped by several factors and will likely stay at that level through this year, said Farm Credit Canada’s chief economist. “Price volatility, higher input costs and weather-related challenges in many parts of the country over the past year took a toll […] Read more
Farm income grew strongly in 2017
Reading Time: < 1 minute Several farm income records were set in Alberta last year, says an Alberta Agriculture statistician. Farm cash receipts were $14.1 billion, the first time they have exceeded $14 billion, said Roy Larsen. Crop market receipts were also a new record, up 3.9 per cent to $6.9 billion. “The growth in receipts was largely driven by […] Read more
Trump’s tariff war threatens to erode support of farmers
Chicago | Reuters — President Donald Trump’s tariff battle with key buyers of U.S. apples, soybeans and corn threatens the support of some of his biggest backers — U.S. farmers now seeing their livelihoods in jeopardy. Farmers overwhelmingly supported Trump in the 2016 election, welcoming how he championed rural economies and vowed to repeal estate […] Read more
Find the key numbers that tell the tale
Using financial indicators and benchmarks gives you the straight goods on how your operation is doing
Reading Time: 2 minutes Some easy-to-calculate ratios can give you a quick idea of the health of your farm or ranch. “The Simple Farm Ratio Analyzer is a shortcut Excel program that takes just eight key financial entries and calculates financial ratios for the farm/ranch and colour codes them in comparison to industry benchmarks,” said Rick Dehod, a provincial […] Read more
Farm sales to co-ops to count for small business deduction
Changes to federal tax law that were meant to block “multiplication” of the small business deduction for corporations won’t apply to farmers’ sales to co-operatives. The federal government on Friday released draft amendments to the Income Tax Act, which would allow qualifying farmers and fishers selling to agricultural and fisheries co-operatives to be eligible for […] Read more
Opinion: ‘Rich’ farmers aren’t a bad thing
People may not appreciate how tough it is to build a farm business, but we should still celebrate those successes
Reading Time: 3 minutes It was just one line in a 25-page report, but it stood out: “It is a popular misconception that farmers are making a lot of money in agricultural enterprises.” As a journalist, I’ve never had to worry that people will think I’m wealthy. But, according to the report, the notion of “rich farmers” is widely held. And […] Read more