Agriculture and Agri-Foods Canada announced its 2017 Canadian Agricultural Outlook.
It forecasts farm income in the agricultural sector for 2016 and 2017, and looks ahead to longer term trends that could impact the agriculture sector.
The report highlights key indicators in Agriculture and Agri-Food Canada that show the strength of the agriculture sector and its contribution to Canada’s economy. This forecast includes input from federal and provincial sources on the outlook for farm cash receipts, expenses and net farm incomes.
The report is prepared in consultation with provincial governments and Statistics Canada and can be used as a benchmark for governments and industry for future planning. Net cash income is estimated to fall by two per cent to $14.8 billion in 2016 and drop seven per cent to $13.8 billion in 2017. However, 2016 and 2017 are still expected to be the second and fourth best years on record, respectively.
Livestock receipts in Canada are expected to decrease by seven per cent in 2016 to $23.9 billion as a result of downward pressure on North American red meat prices from growing meat supplies in the U.S. with a further decline of four per cent for 2017.
Crop receipts are expected to grow two per cent to $32.6 billion in 2016, and increase by a further one per cent to $32.9 billion in 2017. With lower market receipts anticipated in both forecast years, program payments are expected to make up some of the shortfall, increasing by 24 per cent in 2016 to $2.6 billion, and by a further 22 per cent in 2017 to reach $3.2 billion.
Farm operating expenses are forecast to fall by about one per cent in 2016 to $44.2 billion and increase by two per cent in 2017 to $45.1 billion. The net worth of the average farm is expected to reach $2.8 million in 2017.
