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Farm Environmental Management in Canada >
Methodology
Data quality and methodology for the 2001 Farm Environmental Survey
Methodology
for estimating farm sizes
Methodology for estimating farm sizes
Every year, Statistics Canada produces estimates of the average number of
livestock at July 1 and estimates of total revenues on Canadian farms by farm
type and revenue class as part of its Whole Farm Data Project. For example,
Canadian cattle farms earning between $50,000 and $100,000 in total revenues
had an average of 146 cattle on July 1, 2000 and average 2000 revenues of $71,300.
This works out to an average revenue of $488 per animal. Because of greater
efficiency in production and a higher turnover of livestock inventories, larger
farms would be expected to have higher average revenues per animal than smaller
farms when calculated in this way.
Using this information for all revenue classes for the five-year period 1996-2000,
a mathematical model that relates livestock numbers on farms to total revenues
was estimated for each of the major livestock farm types. July 1 numbers can
be recalculated to the January 1 reference date of the 2001 FEMS using ratios
based on aggregate Statistics
Canada livestock inventory data. A smooth curve, generating a mathematical
equation, was obtained by plotting average revenues per animal against total
revenues.
The example of beef cattle farms appears in the chart below. Estimation of
the power function yields the equation:
$/animal = 5.8989 * total revenues 0.4033
Thus, total revenues of $100,000 corresponds to an average of $613 per animal
or 163 animals (= $100,000 / 613) on the farm at January 1.
The same methodology was used for dairy farms (based on dairy cattle and dairy
heifers) and hog farms (based on total hogs). The resulting estimated equations
were used to determine the number of livestock that correspond to the upper
and lower bounds of the revenue ranges for each type of livestock farm. Detailed
information about the estimation procedure is available upon request.
Revenues per animal for beef cattle farms, Canada, average 1996 to 2000
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