Realized net farm income on Canadian farms decreased 2.5 per cent last year, making it the first decline since 2013. Statistics Canada reports it is only the second drop in the previous nine years.
Realized net income is the difference between a farmer’s cash receipts, minus depreciation, plus income in kind.
Saskatchewan is one of five provinces to report a drop in realized net farm income. The others were Ontario, Quebec, New Brunswick and Nova Scotia. The decreases in Saskatchewan and Ontario contributed most to the national decline.
Saskatchewan’s realized net farm income was $3.09 billion, down $321 million from 2016.
It was a combination of lower cash receipts (down $148 million) and higher operating expenses (up $119 million)
Total farm cash receipts in Saskatchewan were $14.052 billion, while operating expenses checked in at $9.28 billion.
Statistics Canada also reports farm debt in Canada rose 6.6 percent, exceeding the $100 billion mark for the first time. However, the $102.3 billion in farm debt is dwarfed by the value of farm capital at nearly $562.7 billion, an increase of 5.5 percent.
More information is available on the Statistics Canada website http://www.statcan.gc.ca/daily-quotidien/180528/dq180528a-eng.htm
For provincial numbers, click on Table 2 at the bottom of the news release.