Agriculture and Agri-Food Canada Farm Income Forecast (2015 - 2016) - Alberta Highlights

 
 
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Agri-Food Statistics Update Issue No. FI16-1

Collected from a variety of sources, the Statistics and Data Development Branch monitors statistical indicators of agri-food activity for Alberta. The Agri-Food Statistics Update is designed to provide users with commentary on current issues, trends and new developments related to agriculture and the food and beverage processing industries. Up-to-date statistics are supplemented with informative charts and diagrams. To gauge Alberta’s performance, comparative data and information are often available for Canada and the provinces.

Following are definitions of terms used in this update:

Farm Cash Receipts measure the gross revenue of farm businesses, in current dollars. Revenues are generated either from sales of crops, livestock and livestock products (except inter-farm sales), or from direct program payments. Receipts are recorded when the money is paid to producers, and before producers pay any operating expenses.

Farm Operating Expenses represent business costs incurred by farm businesses for goods and services used in the production of agricultural commodities.

Net Cash Income (NCI) is defined as farm cash receipts minus farm operating expenses. It represents the amount of cash generated by the farm business that is available for debt repayment, investment or withdrawal by the owner.

Realized Net Income (RNI) is defined as the net cash income minus depreciation plus income-in-kind. It represents the financial flows, both cash and non-cash, attributable to the farm business. RNI does not account for changes in stocks (i.e. value of inventory change for crops and livestock).

Total Net Income (TNI) measures the financial flows and stock changes of farm businesses (i.e. net cash income minus depreciation plus income-in-kind and value of inventory change). It represents the return to owner’s equity, unpaid labour, management and risk.

Agriculture and Agri-Food Canada Farm Income Forecast (2015-2016) - Alberta Highlights
On February 19, 2016, Agriculture and Agri-Food Canada (AAFC) released for all provinces and Canada, its 2015 and 2016 farm income forecasts (January to December). Farm income forecasts are only as good as the assumptions made, and the 2015 and 2016 AAFC forecasts should be considered in this light.

Key Messages

Farm Income Forecast - January to December 2015

  • Overall, the 2015 forecast for Alberta suggests an exceptional year for farm income, with all measures increasing from 2014, including some setting new records if realized.
  • The 2015 forecast shows Alberta’s total farm cash receipts (FCR) at $13.3 billion, up 2.9 per cent from 2014, and if realized, will be the highest on record.
  • The increase is due to higher livestock market receipts and program payments to producers more than offsetting a marginal decline in crop market receipts.
  • Farm operating expenses are expected to remain relatively flat, up 0.2 per cent, to a record $10.1 billion.
  • Net cash income is forecast at $3.2 billion, which would be highest on record.

Farm Income Forecast - January to December 2016
For a complete copy of this update, please download the attached.pdf.
 
 Note to Users: The contents of this document may not be used or reproduced without properly accrediting Alberta Agriculture and Forestry, Economics and Competitiveness Division, Statistics and Data Development Section.
 
 
 
 
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For more information about the content of this document, contact Roy Larsen.
This document is maintained by Mary E Nucom.
This information published to the web on March 9, 2016.