The 2017 Canadian Agricultural Outlook shows slight declines in net cash income for Canadian farms but will stay ahead of the 2011-2015 average.
Net cash income in 2016 is estimated to see a 2% annual decline to $14.8 billion. A decline of 7% to $13.8 billion is expected in 2017 but the years are expected to be the second and fourth best years on record.
The driver behind the declining income is weakness in North American livestock markets. Cattle and calf prices are coming down from record high levels in 2015. Livestock receipts in Canada are expected to decrease by 7% in 2016 to $23.9 billion because of downward pressure on North American red meat prices from growing meat supplies in the United States, with a further decline of 4% for 2017.
Crop receipts are expected to increase in both 2016 and 2017 thanks to the strong marketings, or volumes marketed, of canola in 2016, and an overall increase in grain marketings in 2017.
The net worth of the average farm is expected to reach $2.8 million in 2017.
Meanwhile farm operating expenses are forecast to decline by about 1% in 2016, to $44.2 billion, and increase by 2% in 2017 to $45.1 billion.
A growing world population, increasing disposable incomes in developing nations and increasing trade in farm products present opportunities to further grow the Canadian agriculture sector.
The 2016-2017 Agriculture Outlook summary. (Courtesy of AAFC)
