Canadian producers’ realized net income amounted to $4.0 billion in 2010, an increase of $916 million (+29.4%) from 2009. This increase followed a 19.6% decline in 2009. Lower operating expenses more than offset a small decrease in farm cash receipts in 2010.
Realized net income is the difference between a farmer's cash receipts and operating expenses minus depreciation, plus income in kind.
Market receipts, the revenue from the sale of crops and livestock, edged up 0.1% to $41.3 billion. Rising livestock receipts narrowly offset declining crop receipts. Livestock receipts rose 4.5% to $18.9 billion on the strength of higher hog (+19.4%) and cattle (+4.9%) prices. Despite improvements in 2010, hogs prices remained below their recent peak in 2004. The market price of cattle was at its highest level since 2002.
Total farm expenses, which include total operating expenses and depreciation, fell 2.5% to $40.5 billion in 2010, after a 1.7% drop in 2009. This was largely the result of declines in fertilizer, feed and pesticide expenses. Lower prices and inventories of hogs and cattle contributed to the second consecutive drop in commercial feed expenses.
Thursday November 24, 2011/ Statistics Canada/ Canada.