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Canadian farm incomes set to fall this year from record high - gov't

Published 2016-02-19, 01:31 p/m
© Reuters. Canadian farm incomes set to fall this year from record high - gov't
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WINNIPEG, Manitoba, Feb 19 (Reuters) - Canadian farm incomes
look set to fall in 2016 after a year of record profits, but
will still reach above-average levels, according to a report
from the federal government.
Rising receipts for crops and livestock have boosted incomes
in recent years, due to greater demand in developing countries
and a weak Canadian dollar, a report from Agriculture and
Agri-Food Canada said on Friday. Lower crude oil prices have
also cut farmers' expenses.
Net cash income in 2016 should fall 9 percent to C$13.6
billion ($9.87 billion) from C$15 billion last year. Those
earnings would be 14 percent higher than the average from 2010
to 2014.
U.S. farmers, who have been hurt by a strong U.S. dollar
that has crimped exports, are in worse shape.
The U.S. Department of Agriculture forecast the nation's net
farm income at $54.8 billion in 2016, down from $123.3 billion
in 2013, when corn prices reached record highs.
For the near term, grain prices look likely to remain under
pressure due to ample global stocks, while expansion of the U.S.
livestock sector weighs on prices of cattle and hogs, the
Canadian government report said.
Canada is the world's biggest exporter of canola and
second-largest shipper of wheat.
Farmers' income is a measure of their spending power on crop
inputs such as seed, fertilizer and chemicals, as well as
tractors and other field equipment. Deere & Co DE.N , maker of
John Deere tractors, cut its fiscal-year outlook and reported
lower quarterly earnings on Friday as U.S. farmers' declining
income weakened demand for agricultural equipment.
($1 = 1.3784 Canadian dollars)

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