2017 Farm Income - Alberta Highlights

 
 
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 Agri-Food Statistics Update - Issue No: FI18-2
Collected from a variety of sources, the Statistics and Data Development Section 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-inkind. 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.

Note to Users: The contents of this document may not be used or reproduced without properly accrediting Alberta Agriculture and Forestry, Economics and Competitiveness Branch, Statistics and Data Development Section.

Release Information
On May 28, 2018, Statistics Canada released its 2017 farm income estimates, as well as 2018 first quarter (January to March) farm cash receipts (FCR) for Canada and the provinces. Detailed data is available on the Statistics Canada website.

https://www150.statcan.gc.ca/n1/en/type/data

Key Messages

Farm Income - 2017 Calendar Year
  • Alberta had a very healthy farm income situation in 2017, evidenced by several records for key indicators.
  • Setting new highs were net cash income ($3.6 billion, up 6.8 per cent from 2016), and realized net income ($1.8 billion, up 10.3 per cent).
  • In 2017, FCR for Alberta surpassed $14.1 billion (up 4.5 per cent from 2016), and ranked first among provinces. Fuelling the gain were higher crop and livestock market receipts, plus program payments to producers.
  • Crop market receipts increased 3.9 per cent to a record $6.9 billion, largely driven by increased marketings and higher prices for wheat and canola.
  • Livestock market receipts rose 4.6 per cent to $6.4 billion (second highest on record), mainly due to increased marketings, particularly for cattle.
  • Program payments to producers increased 9.7 per cent, to $764.1 million driven mainly by higher payments under Crop Insurance, AgriStability, AgriRecovery and Compensation for Animal Losses.

Farm Cash Receipts - 2018 First Quarter
  • The release also included FCR for the first quarter of 2018 (January to March). For Alberta, total FCR was $3.9 billion, down 5.7 per cent from the first three months of 2017. The decline was not unique to Alberta as total FCR fell for most provinces.


For a complete copy of this update, please download the attached pdf.
 
 
 
 
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For more information about the content of this document, contact Roy Larsen.
This document is maintained by Samantha Wallbank.
This information published to the web on July 11, 2018.