Ottawa (Rural Roots Canada) – Canadian farmers saw their income take a big hit in 2024, as realized net farm income fell 26% to $9.4 billion while costs increased, according to new data from Statistics Canada.
It’s a $3.3 billion decline from the previous year, driven largely by weaker crop prices and higher operating costs.
Every province, except Newfoundland and Labrador and Nova Scotia, reported declines, with Saskatchewan posting the largest loss, down $1.3 billion.
It marked the first drop in farm cash receipts since 2010, falling $1.4 billion to $98.1 billion nationwide. The decline was concentrated in the Prairies, led by Saskatchewan and Manitoba.
Total crop receipts tumbled 6.1% to $52.2 billion, the biggest percentage decrease since 2003. Prices for major grains and oilseeds fell as domestic and international supplies recovered following two years of strong growth.
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Despite higher volumes being sold, farmers earned less for their crops. The largest drop came in Saskatchewan (-$1.7 billion), Alberta (-$1.1 billion), and Manitoba (-$652 million).
Livestock producers fared better, with receipts rising 7.2% to $40 billion, with strong prices across every sector except poultry. Cattle and calf sales led the charge, up 12.2% to $16.9 billion, supported by steady global demand and smaller North American herds.
StatsCan says historically high prices in 2024, resulting in cattle prices averaging more than 50% above their five- and ten-year averages. In the supply-managed sector, receipts grew 2% to $15.2 billion, supported by higher egg and milk revenues, though poultry prices dipped slightly amid lower feed costs and greater production.
While revenues dropped, expenses continued to climb. Total operating costs rose 2.7% to $78.5 billion, led by soaring interest expenses, which jumped 28.6% as producers took on more debt. Farm debt surged 14.1% in 2024, the largest annual increase since 1981. That increase happened despite the Bank of Canada cutting interest rates mid-year.
StatsCan notes that income level can vary widely among farms, depending on the mix of commodities, weather conditions, and economies of scale.
