2014 was a bumper year

The Glengarry News - Glengarry Supplement - - News -

Agri­cul­ture Canada says 2014 was a bumper year for the coun­try's farm­ers, with ag­gre­gate net cash in­come pro­jected to to­tal a record $14 bil­lion.

The depart­ment's 2015 Cana­dian Agri­cul­tural Out­look says in­comes will be off from that this year, but will re­main strong.

Pre­lim­i­nary fore­casts for 2015 sug­gest farm in­comes will slip to $13 bil­lion due to lower grain and oilseeds re­ceipts be­cause of a U.S. bumper crop in 2014 and higher world stocks. The forecast says a weaker loonie will make Cana­dian prod­ucts more com­pet­i­tive and tem­per some price declines.

It says re­cent declines in fuel prices will also add to agri­cul­ture in­come, but the volatil­ity in crude oil mar­kets makes it hard to es­ti­mate the full im­pact. Av­er­age to­tal in­come of farm fam­i­lies, which in­cludes the fam­ily's share of net op­er­at­ing in­come from the farm and other in­come, is pro­jected to reach $131,595 in 2014 and $134,931 in 2015.

The out­look says things are look­ing good for the near fu­ture. “The medium-term prospects for agri­cul­ture and agri-food de­mand and trade are pos­i­tive,” the depart­ment said. “Ris­ing global eco­nomic growth and in­creas­ing in­comes in large, emerg­ing coun­tries will con­tinue to spur de­mand-side growth and Canada will con­tinue to be an im­por­tant sup­plier in many of these mar­kets.” In live­stock, the cat­tle and hog sec­tors en­joyed record prices in 2014 due to low North Amer­i­can sup­plies. Weak­en­ing feed grain prices also con­trib­uted to higher in­comes. The depart­ment pre­dicts that to­tal live­stock re­ceipts will not change sig­nif­i­cantly in 2015, although cat­tle re­ceipts will con­tinue to ben­e­fit from tight mar­kets and higher prices. “Hog pro­duc­ers have seen high lev­els of price and in­come vari­abil­ity over the last decade and this vari­abil­ity is ex­pected to con­tinue over the near term.”

Agri­cul­ture Canada has an up­beat take on the state of agri­cul­ture.

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