Alberta 2015 Farm Income and 2016 First Quarter (January to March) Farm Cash Receipts

 
 
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Agri-Food Statistics Update - Issue No.FI16-2
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.

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.

On May 25, 2016, Statistics Canada released for provinces and Canada, the estimated annual farm income estimates for 2015, as well as preliminary 2016 first quarter (January to March) farm cash receipts (FCR).

Key Messages

Annual Farm Income - 2015

  • Overall, 2015 was an exceptional year for farm income in Alberta, with all measures up from 2014, and some setting new records.
  • In 2015, Alberta’s FCR totalled a record $13.6 billion, up 5.1 per cent from 2014. Fuelling most of the increase were record livestock market receipts, coupled with higher crop market receipts and program payments to producers.
  • Farm operating expenses were a record $10.3 billion, up 2.3 per cent from 2014, due to higher expenses for some inputs.
  • In 2015, records were also set for net cash income (difference between total FCR and expenses) at $3.2 billion (up 15.2 per cent from 2014), and realized net income (net cash income adjusted for depreciation) at $1.5 billion (up 26.1 per cent from 2014).
  • Among provinces, Alberta was second to Saskatchewan in total FCR, net cash income and realized net income.

First Quarter Farm Cash Receipts - January to March 2016
  • Alberta’s first quarter FCR in 2016 was $3.7 billion, up 4.3 per cent from the first three months of 2015.

For a complete copy of this update, please download the attached pdf.
 
 
 
 
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This document is maintained by Mary E Nucom.
This information published to the web on June 22, 2016.
Last Reviewed/Revised on February 24, 2017.