Farming forecast remains strong
On Feb. 19 Agriculture and Agri-Food Canada released the 2016 Canadian Agricultural Outlook.
The report provides a forecast of farm income in the agricultural sector for the previous and current calendar years (2015 and 2016), and looks ahead 10 years to longer term trends that could impact the agriculture sector. Farm incomes are forecast to reach record levels for Canadian farmers in 2015, and remain above average for 2016.
A projected increase in both crop and livestock receipts contributes to strong income levels in both 2015 and 2016. An increase in global trade and greater demand for agricultural commodities by developing countries present opportunities to further grow the Canadian agriculture sector.
“Canada’s agriculture and food industry is well positioned for continued success.” said Lawrence MacAulay, Minister of Agriculture and Agri-Food.
“The Government of Canada will support the continued growth of the sector by working closely with our provincial and territorial partners, investing in research and innovation here at home, and working to open new markets around the world.”
The Canadian Agricultural Outlook highlights include:
- Net cash income in 2015 is estimated to increase by 6% over 2014, reaching a record $15.0 billion. A decline of 9% to $13.6 billion is expected in 2016, still 14% higher than the 2010-2014 average.
- Average farm-level net operating income in 2015 is forecast to be $77,287, which is 8% higher than 2014.
- Average net worth per farm is expected to reach $2.7 million in 2016.
- Low Canadian dollar has improved competitiveness of Canadian agriculture and food products in export markets.
