Agriculture and Agri-Food Canada is anticipating a strong year for Canadian farmers in 2014. Three new reports released today, the Farm Income Forecast for 2013 and 2014, the Medium Term Outlook and the Farm Income, Financial Conditions and Government Assistance Data Book, 2013, suggest an overall positive situation for the agriculture sector in 2013 and 2014. These reports provide financial and market forecasts for the sector and offer benchmarks for producers, industry stakeholders and governments as they plan for the years ahead.
With farmers’ net incomes remaining near historical peaks, robust crop prices, favourable livestock markets and an excellent Prairie harvest, indications suggest an overall positive situation for the agriculture sector in 2013 and 2014.
Farm Income Forecast for 2013 and 2014 Highlights
• Canadian farmers produced a record crop of 96.5 million tons of grain in 2013 due to historically high yields and ideal weather conditions.
• The average total income of farm families is expected to continue rising, reaching $132,579 in 2014.
• Aggregate net cash income for 2013 is projected to total $13.2 billion, a near-record, while farm-level average net operating income is forecasted to increase to $68,498.
• Program payments declined by 25% due to favourable production conditions in 2013 and generally healthy returns the last few years.
• Average net worth per farm is projected to hit an all-time high of $2 million in 2014.
Medium Term Outlook Highlights
An increase is expected in prices for grains and oilseeds from the current lows as robust global growth and rising demand continues to support prices well above pre-2007 levels.
Although feed prices have declined from drought induced highs, they will remain relatively strong and continue to be the most significant cost component for the livestock sector.
Cattle and hog prices are expected to remain at higher levels over the medium term and livestock producers will find some relief from the high 2012 grain prices.
• The Outlook projects that Canadian exports of agriculture and agri-food products will continue to expand on trend supported by economic growth in large emerging markets. Exports will continue to be important for the red meat sector.