Net farm income, by province

Correction notice

Correction date: December 12, 2022

On December 6, 2022, estimates for “Commercial feed” were corrected at the Canada and provincial levels for reference year 2021. “Total operating expenses” and “Total expenses” (before and after rebates) were also corrected at the Canada-level for the same period.

Estimates for “Operating expenses after rebates,” “Net cash income,” “Realized net income,” and “Net income, total” were corrected at the Canada-level for reference year 2021.


The data used to create this interactive web application is from the following listed data tables:

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Additional information


Figures may not add to totals because of rounding.

Increases in total gross operating expenses and depreciation charges appear as a decrease in the waterfall chart because higher expenses or depreciation charges will reduce net farm income since they are subtracted from receipts in the computation of net farm income. Conversely, a decrease in total gross operating expenses or depreciation would be expressed as an increase in the waterfall chart.

The national GDP deflator at market prices available in March is used as a price deflator for Canada and the provincial GDP deflator at market prices available in November is used as a price deflator for the provinces. Source(s): table 36-10-0130-01 and table 36-10-0223-01

The longstanding trend towards incorporation allows managerial and supervisory services of the operators to be recorded as wages instead of part of the operating surplus of unincorporated farms. Over time this will have a downward effect on the measures of net cash income and realized net income.


Net cash income of farm businesses is derived by subtracting operating expenses from farm cash receipts. It represents the amount of cash generated by the farm business that is available for debt repayment, investment or withdrawal by the operators.

Realized net income of farm businesses is derived by subtracting depreciation and adding income-in-kind to net cash income. It represents the financial flows, both cash and non-cash, attributable to the farm businesses, similar to an income statement. It represents the net income from transactions in a given year in that it includes the sale of commodities regardless of the year they were produced.

Total net income measures the financial flows and stock changes of farm businesses (net cash income minus depreciation plus income-in-kind and value of inventory change). It represents the return to owner's equity, unpaid labour, management and risk. Total net income values agriculture economic production during the year that the agricultural goods were produced.

Components of these net farm income measures

+ Total cash receipts
- Operating expenses after rebates
= Net cash income
+ Income in kind
- Depreciation charges
= Realized net income
+ Value of inventory change
= Total net income

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