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Canadian Farming Forecast Suggests Continued Positive Economic Outlook

OTTAWA, ONTARIO -- (Marketwired) -- 02/17/17 -- Agriculture and Agri-Food Canada

Today, Agriculture and Agri-Food Canada released the 2017 Canadian Agricultural Outlook. The report provides a forecast of farm income in the agricultural sector for the previous and current calendar years (2016 and 2017), and looks ahead to longer term trends that could impact the agriculture sector.

In 2016 and 2017, Net Cash Income is forecast to see slight declines, but will remain above the 2011-2015 average. The primary driver of declining income is weakness in North American livestock markets as cattle and calf prices descend from record high levels observed in 2015. Crop receipts are expected to increase in both 2016 and 2017 due to strong marketings, or volumes marketed, of canola in 2016, and an overall increase in grain marketings in 2017 as the large crop harvested last fall works its way through the grain marketing system.

Most indicators suggest a continuing positive economic situation for the sector. A growing world population, increasing disposable incomes in developing nations and increasing trade in farm products present opportunities to further grow the Canadian agriculture sector.

Quote

"Canada's agriculture and agri-food industry is a key driver of the Canadian economy. The Government of Canada will support the continued growth of the sector by investing in research and innovation, working to open new markets around the world and collaborating with our provincial and territorial partners."


--  Lawrence MacAulay, Minister of Agriculture and Agri-Food

Canadian Agricultural Outlook Highlights:


--  Net cash income in 2016 is estimated to experience a modest 2% annual
    decline to $14.8 billion. A decline of 7% to $13.8 billion is expected
    in 2017, however 2016 and 2017 are still expected to be the second and
    fourth best years on record, respectively.
--  Livestock receipts in Canada are expected to decrease by 7% in 2016 to
    $23.9 billion as a result of downward pressure on North American red
    meat prices from growing meat supplies in the U.S. with a further
    decline of 4% for 2017.
--  Crop receipts are expected to increase 2% to $32.6 billion in 2016, and
    increase by a further 1% to $32.9 billion in 2017.
--  With lower market receipts anticipated in both forecast years, program
    payments are expected to make up some of the shortfall, increasing by
    24% in 2016 to $2.6 billion, and by a further 22% in 2017 to reach $3.2
    billion.
--  Farm operating expenses are forecast to decline by about 1% in 2016, to
    $44.2 billion, and increase by 2% in 2017 to $45.1 billion.
--  The net worth of the average farm is expected to increase, reaching $2.8
    million in 2017.

Associated Links

2017 Canadian Agricultural Outlook

Media Information

Audio recording of the recap of the technical briefing, for media use (MP3 format, 1.4MB)

Images for the 2017 Canadian Agricultural Outlook are available for media use

Contacts:
Guy Gallant
Director of Communications
Office of the Honourable Lawrence MacAulay
613-773-1059

Media Relations
Agriculture and Agri Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972

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