Farm cash receipts

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Farm cash receipts for Canadian farmers totalled $23.3 billion during the first half of 2011, up 9.7% from the same period in 2010. This gain follows an 8.3% decline between the first half of 2009 and 2010.

Farm cash receipts, which include crop and livestock revenues plus program payments, advanced in every province except British Columbia (-3.2%) and Manitoba (-2.0%). Prince Edward Island, Quebec, Alberta and Ontario all recorded double-digit increases.

Market receipts from the sale of crops and livestock amounted to $21.9 billion, up 8.9% from the first half of 2010. Crop receipts rose 12.4% to $12.1 billion, while livestock receipts were up 4.8% to $9.8 billion.

The $1.3 billion increase in crop receipts was primarily a result of higher prices for most major grains and oilseeds, which more than compensated for reduced marketings. Contributing factors to the price increases over the first half of 2011 included low global grain and oilseed stocks, increased global demand, persistent dryness in many areas of the European Union, Russia and the United States, and poor spring planting conditions in many parts of North America.

Cash receipts rose for most grains and oilseeds, with the biggest gains in canola (+29.2%), wheat including durum (+25.7%) and corn (+83.7%). Each experienced average price increases of more than 30% between the first half of 2010 and 2011.

Dry pea receipts rose 77.3%, a result of both strong prices and increased marketings. Potato receipts increased 6.5%, as improved prices more than compensated for reduced marketings.

On the other hand, producers deferred more grain receipt payments in the first half of 2011 compared with the same period in 2010, dampening the increase in crop receipts. Another factor moderating the increase was a 38.9% drop in lentil receipts as both prices and marketings declined.

British Columbia, Manitoba and Newfoundland and Labrador were the only provinces to record a decline in crop receipts.

On the livestock side, hog receipts increased 9.3% to $1.9 billion as higher prices more than compensated for a drop in marketings. The average price for hogs was 12.2% higher in the first half of 2011 than for the same period in 2010. This marks the highest January-to-June average price since 2005.

Cash receipts for cattle and calves declined 0.3% to $3.0 billion. A 21.4% increase in the average price was not enough to offset a 16.9% drop in the number of head sold. The number of cattle and calves sold fell for both domestic slaughter and export markets, as lower on-farm inventories limited the supply of market animals.

In the supply-managed sector (dairy, poultry, eggs), farm cash receipts rose 6.3% from the first half of 2010, mainly the result of higher prices. Supply-managed commodities accounted for over 44% of total livestock receipts.

Program payments amounted to $1.4 billion in the first half of 2011, up 25.2% from the same period in 2010. This follows a 23.0% decline between the first half of 2009 and 2010, and a 37.2% drop between the first half of 2008 and 2009. Increases in provincial program payments in Quebec and crop insurance payments in Saskatchewan were the main contributors to the rise.

Note: All data are in current dollars. Farm cash receipts measures gross revenue for farm businesses. They do not represent their bottom line, as farmers have to pay their expenses and loans and cover depreciation.

Information on net farm income for 2010 was released in The Daily on May 25, 2011. Preliminary information on net farm income for 2011 will be available in May 2012.

Available on CANSIM: tables 002-0001 and 002-0002.

Definitions, data sources and methods: survey numbers, including related surveys, 3437 and 3473.

A data table is also available from the Summary tables module of our website.

To order data, contact Client Services (toll-free 1-800-465-1991; fax: 613-951-3868; agriculture@statcan.gc.ca). For more information, or to enquire about the concepts, methods or data quality of this release, contact Stephen Boyd (613-951-1875; stephen.boyd@statcan.gc.ca), or Gail-Ann Breese (204-983-3445; gail-ann.breese@statcan.gc.ca), Agriculture Division.