From Statistics Canada’s The Daily
Farm cash receipts for Canadian farmers totalled $14.8 billion in the first quarter, up 4.5% from the same quarter in 2014.
Farm cash receipts, which include crop and livestock revenues as well as program payments, increased in six provinces, with the gains ranging from 0.7% in New Brunswick to 13.4% in Nova Scotia. Conversely, receipts were down in Prince Edward Island (-4.2%), British Columbia (-2.4%), Quebec (-2.2%) and Ontario (-1.2%).
Livestock receipts rose by $483 million (+8.3%) to $6.3 billion, while crop receipts were virtually unchanged at $7.9 billion.
Livestock receipts increased in every province, with gains ranging from 0.4% in Quebec to 22.9% in Saskatchewan.
Cattle and calf receipts increased 25.5% from the same quarter a year earlier to $2.6 billion in the first quarter. The increase was the result of a 45.1% increase in average prices compared with the first quarter of 2014. Low North American supplies continued to contribute to higher prices.
Moderating the rise in cattle and calf receipts was a 13.7% decline in the number of head marketed, which fell to its lowest level for a first quarter since 1994. Despite this, and for the first time since 2003, receipts for cattle and calves in the first quarter exceeded those for the supply-managed sector (dairy, poultry and eggs).
In the supply-managed sectors, farm cash receipts increased 2.0% in the first quarter compared with the same quarter in 2014. Increased poultry, dairy and egg marketings were the main reason for the gain.
Hog receipts declined 12.2% to $1.0 billion, as prices were down 16.2%.
Crop receipts declined in every province except Saskatchewan (+8.1%) and New Brunswick (+0.1%). Saskatchewan crop receipts increased $248 million compared with the same quarter in 2014 to $3.3 billion, stabilizing crop receipts at the national level.
Liquidations of deferred grain sales declined by $400 million, negatively affecting the first quarter crop receipt results. Lower corn and soybean receipts also contributed to the decline. Corn receipts were down 24.6% as marketings fell 28.8%. This followed a 19.1% decline in 2014 Canadian corn production levels. Soybean receipts fell 11.5%, as prices weakened after record North American soybean production in 2014.
Conversely, canola receipts rose 16.5% as marketings increased 18.1%. More than three-quarters of the marketings increase are attributable to Saskatchewan. Large price gains pushed lentil and durum wheat receipts higher, both of which are grown mainly in Saskatchewan.
Program payments were up 35.6% from the first quarter of 2014 to $576 million. The increase follows a 49.1% decrease for the January-to-March period a year earlier. Higher crop insurance payments were the main reason for the gain in 2015, with the Prairie provinces being the primary recipients.
Farm cash receipts and farm operating expenses for 2014
Farm cash receipts rose 4.6% from 2013 to $57.4 billion in 2014, a fourth consecutive annual increase.
Receipts rose in every province outside of the Atlantic provinces. Alberta recorded the largest percentage increase at 9.1%, followed closely by Saskatchewan at 8.0%.
Livestock receipts increased $4.1 billion (+18.9%) over 2013 levels, more than enough to offset a $951 million decline in crop receipts and a $586 million drop in program payments.
Cattle and calf receipts rose 43.6%, as average 2014 prices were up 37.4% over 2013. Hog receipts also contributed to the rise in livestock receipts, increasing 25.2% on the strength of higher prices.
Lower crop receipts for wheat (excluding durum), corn and soybeans all contributed heavily to the drop in crop receipts, with price declines as the primary reason. The decline in crop receipts was moderated by a decrease in deferments and increases in lentil and durum wheat receipts.
Total farm expenses, which include total operating expenses and depreciation, rose 2.4% to $50.2 billion in 2014. A 46.5% increase in livestock purchases, boosted by sharply higher cattle and calf prices, more than offset declines in feed as well as crop and hail insurance premiums.