Six-year slide ends
For the first time since 2012, the average Ontario dairy farm’s profit has not dropped, however, smaller operations were in the red last year.
The figures are contained in the Ontario Dairy Farm Accounting Project, a report published by the Canadian Dairy Commission and Dairy Farmers of Ontario.
A sampling of 70 dairy farms from across the province found that the average net income was $128,230 in 2017, a sharp increase from the average of $90,114 in 2016.
Since 2012, the average profit had been dropping.
While the average net income in 2008 was $117,860, it rose to $178,601 in 2012 before decreasing to $154,894 in 2013, $146,907 in 2014 and to $132,879 in 2015.
Smaller farms did not enjoy that upward trend.
The group of 15 small farms, with 43 cows, assets of $3.85 million and liabilities of $790,428, had an average loss of $8,298.
The top 15 dairy farms (123 milkers, assets of $10.88 million and liabilities of $3.31 million) turned an average profit of $258,554.
More from milk
The middle 40 (81 cows, assets of $7.14 million and liabilities of $1.89 million) had an average net income of $121,989.
The typical dairy operation had revenues of $763,971 last year, up from $725,855 in 2016. Expenses were $635,741, the same as they were the previous year.
Livestock sales revenues decreased from $43,632 to $38,685 and crop sales dropped from $46,191 to $39,360.
However, the average farm’s bottom line improved because milk sales rose from $582,158 to $611,897.
TENSE TIMES: Any concessions made at the international bargaining table will affect the bottom lines of local dairy farmers, and will have a ripple effect on the local economy.