Net farm income to slip in 2017 as livestock herds expand

OTTAWA — Net cash income for farmers is forecast to dip slightly for both 2016 and 2017 as livestock producers take a hit from swelling herds of both cattle and hogs in Canada and the U.S. Overall net cash income in 2016 is estimated to slip by two per cent to $14.8 billion, with another seven per cent decline in 2017 to $13.8 billion. Agriculture and Agri-Foods Canada’s 2017 outlook, released Friday, predicts that grain farmers will see rising incomes for both years as last year’s bumper harvest moves through the markets, but livestock producers will lose ground. Livestock receipts are expected to be down seven per cent for 2016 to $23.9 billion, with a further decline of four per cent for 2017. Expanding meat production in the U.S. is leading to weaker prices for cattle and hog farmers on both sides of the border. American meat supplies are rising after years of decline, the outlook said.