Six-year slide ends

The Glengarry News - - The Classifieds -

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.

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