Canadian farm income is expected to reach a new record

2023 was a good year for some commodities. Some other goods encountered problems. That makes us optimistic that agriculture is in good shape, explained local farmer and Bruce County Federation of Agriculture president Chris Kossitt.
Agriculture Canada predicts that Canadian farm net cash income will reach a new record in 2023.
They forecast the difference between cash receipts and operating expenses to rise 13 percent to a record $24.8 billion. The beef sector is expected to increase by 10% with a 4% increase in products. Spending rose just two percent last year, below the projected 20 percent growth in 2022.
This expected difference is good news for agricultural investment this year.
When you put a dollar in a farmer's pocket, it doesn't stay there. They tend to circulate it and it's a circular economy. Upgrade facilities, technology, equipment or more land. Farmers are really good at running the economy.
 
"We're facing higher carbon taxes, higher energy prices, whenever we go to the grocery store, we're paying the same prices that consumers are paying," Cossitt said.

Federal government estimates agree, suggesting that 2024 will not be as kind to farmers as 2023.

Net cash income is expected to decline 14 percent to $21.3 billion, while beef production is expected to decline and crop revenue is expected to decline five percent. But Agriculture Canada said net cash income is still 28 per cent higher than the average for 2018 to 2022.

This is good economic news for farmers, but it is not news that will solve the huge costs of starting a food producer.


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