Alberta 2016 Farm Income and 2017 First Quarter (January to March) Farm Cash Receipts

 
 
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 Agri-Food Statistics Update - Issue No.FI17-2
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-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.

Please visit the following website for a complete listing of Agri-Food Statistics Update releases:
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sdd5270

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 24, 2017, Statistics Canada released for provinces and Canada, the estimated annual farm income estimates for 2016, as well as preliminary 2017 first quarter (January to March) farm cash receipts (FCR).

Key Messages

Annual Farm Income - 2016
  • Overall, 2016 was another relatively good year for farm income in Alberta, with several measures up from 2015 and setting new records.
  • Setting records in 2016 were net cash income (difference between total FCR and expenses) at $3.5 billion (up 8.0 per cent from 2015), and realized net income (net cash income adjusted for depreciation) at $1.8 billion (up 15.0 per cent from 2015).
  • In 2016, Alberta’s total FCR was $13.5 billion, marginally down 0.8 per cent from 2015, and second highest on record. The decline in FCR was due to lower livestock market receipts that more than offset higher crop market receipts and program payments to producers.
  • Farm operating expenses were $10.0 billion, down 3.5 per cent from 2015, due to lower expenses for some inputs.
  • 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 2017
  • Alberta’s first quarter FCR in 2017 was $4.1 billion, up 3.8 per cent from the first three months of 2016, signaling a good start to the year.12017 First Quarter (January to March) Farm Cash Receipts
For a complete copy of this update, please download the attached pdf.
 
 
 
 
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This information published to the web on June 9, 2017.
Last Reviewed/Revised on June 27, 2017.