Ottawa (Rural Roots Canada) – Agriculture and Agri-Food Canada has released its farm income forecast for 2023 and 2024, revealing a record-breaking year for the Canadian agriculture sector.

The forecast confirms the resiliency of the ag sector despite numerous challenges, including extreme weather, drought, the ongoing war between Russia and Ukraine, and other global conflicts.

For 2023, Net Cash Income (NCI) set a new record of $24.8 billion, an increase of 13 percent. While growth in expenses and receipts is expected to be modest compared to 2021 and 2022, growth in receipts for 2023 is forecast to outpace expenses, resulting in a new NCI record.

Driving this expected increase is livestock receipts of almost 10 percent, to just over $37 billion. Cattle receipts particularly helped offset an expected decline in hog receipts. Crop receipts are forecast to have grown by 4 percent to $56 billion.

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In a statement, Lawrence MacAulay, Minister of Agriculture and Agri-Food, applauded the hard work Canadian farmers put in, day in and day out and acknowledged their crucial role in bolstering the economy and ensuring food security.

“I recognize the vitally important role our farmers play in growing the economy and sustaining our country, and I will continue to do everything I can to support them,” says MacAulay.

Looking ahead to 2024, NCI is projected to decrease by 14 percent to $21.3 billion. The expected downturn will be due to a slight drop in cash receipts and modestly increasing expenses. Crop receipts are forecasted to decline by five percent, while livestock receipts are expected to grow at a slower pace of two percent.

Statistics Canada will release fourth-quarter receipts for 2023 at the end of February, with farm income estimates to follow in May. Agriculture and Agri-Food Canada plans to provide an updated forecast for 2024 and a new forecast for 2025 based on these releases.

You can read the Farm Income Forecasts results for 2023 and 2024 at this link.