Alberta 2016 Third Quarter (January to September) Farm Cash Receipts and 2015 Farm Income Estimates

 
 
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 Agri-Food Statistics Update - Issue No.FI16-3
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-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 November 29, 2016, Statistics Canada released its 2016 third quarter (January to September) farm cash receipts (FCR) estimates, as well as finalized 2015 farm income estimates for Canada and the provinces.

Key Messages

Farm Cash Receipts - January to September 2016

  • In the third quarter (January to September) of 2016, Alberta’s total FCR was $10.2 billion, slightly down 2.4 per cent from the first nine months of 2015. Even so, these were the second highest third quarter receipts for the province and highest in the nation.
  • Fuelling the lower FCR was a drop in livestock market receipts which more than offset higher crop market receipts and program payments to producers.
  • Livestock market receipts fell 11.2 per cent to $4.6 billion, driven largely by lower cattle prices.
  • Crop market receipts increased 5.9 per cent to $5.0 billion, due mostly to higher prices.
  • Program payments were up 10.6 per cent to $540.6 million, largely due to higher payments under Crop and Hail Insurance.
  • Farm Income - January to December 2015
  • Alberta’s total FCR in 2015 was a record $13.7 billion and 6.0 per cent higher than in 2014.
  • The province’s total farm operating expenses increased 2.2 per cent to a record $10.3 billion.
  • Alberta’s net cash income (difference between total FCR and total expenses) was a record $3.3 billion ($2.8 billion in 2014). Adjusted for depreciation (a non-cash cost of $1.7 billion), the resulting realized net income (RNI) reached a new high of $1.6 billion ($1.2 billion in 2014). Total net income (RNI adjusted for inventory change) jumped to $1.3 billion ($409.0 million in 2014), the third highest on record.

For a complete copy of this update, please download the attached.pdf.
 
 
 
 
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This information published to the web on December 16, 2016.