OTTAWA
,
November 28, 2023
(press release)
–
Farm cash receipts for Canadian farmers totalled $72.5 billion over the first three quarters of 2023, up 7.9% (+$5.3 billion) from the same period in 2022, as receipts for crops and livestock rose, while program payments fell. The return to normal production levels pushed crop receipts up $4.5 billion to $41.4 billion due to the gain in marketings and despite a drop in prices. Meanwhile, cattle and supply-managed prices were up, resulting in a $2.2 billion increase in total livestock receipts to $27.2 billion. Conversely, program payments declined $1.4 billion to $4.0 billion after hitting record highs in 2022. Crop insurance payments led this decrease as payments moved closer toward the five-year average. Every province recorded a rise in total receipts. Saskatchewan posted the strongest growth, with total receipts up $2.3 billion to $16.5 billion, accounting for over 40% of the national increase. Total crop receipts in the first three quarters were up 12.1% to $41.4 billion compared with the same period in 2022. Receipts for canola, wheat (excluding durum) and durum wheat led the way in the first three quarters of 2023, accounting for over three-quarters of the growth in total crop receipts. Higher marketings for canola (+40.1%), wheat (excluding durum) (+31.1%) and durum wheat (+73.0%) drove up crop receipts. The increase in marketings was due to a return to normal production levels in the 2022 crop year, following the severe drought in Western Canada in 2021. In the first three quarters of 2023, prices fell 15.5% for canola, 8.9% for wheat (excluding durum) and 17.9% for durum wheat, although they were still higher than their five-year average. Livestock receipts rose 8.9% to $27.2 billion during the first three quarters of 2023 due to increases in the cattle and supply-managed sectors. The gain in cattle receipts (+$1.8 billion) contributed to more than 80% of the total increase in livestock receipts. Cattle receipts ($9.8 billion) were up due to a rise in prices in both cattle slaughter (+28.2%) and international exports (+24.0%). These price increases were caused by strong demand in Canadian and US markets and higher input costs for producers. Supply-managed receipts grew 7.2% to $11.2 billion and accounted for just over 40% of total livestock receipts. Dairy receipts were up $312.2 million to $6.4 billion on the strength of higher prices driven by production cost increases. Both marketings and prices pushed receipts for chickens for meat up $286.4 million to $3.1 billion. Despite a small increase in marketings, the 11.8% decrease in price led to a drop in hog receipts (-11.2%) to $4.5 billion. Hog slaughter accounted for over three-quarters of this decrease. Total direct payments, although they remained high, decreased $1.4 billion to $4.0 billion. Most of the drop was attributable to lower crop insurance payments, which had been high in 2022 as a result of the drought in 2021. This decline primarily affected the Prairie provinces, with drops in crop insurance payments in Alberta (-$775.2 million), Saskatchewan (-$429.8 million) and Manitoba (-$249.2 million).Chart 1
Total crop, livestock and direct payment receipts as a proportion of total farm cash receipts, January to September, Canada, 2013 to 2023
Chart 2
Farm cash receipts by category, by province or region, January to September, 2023
Canola and wheat boost total crop receipts
Livestock receipts up on higher cattle receipts
Crop insurance payments drop following record year
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