Farm cash receipts for 2022's first 3 quarters up nearly 14%

Statistics Canada announced Monday that farm cash receipts for Canadian farmers totalled $66.7 billion through the first three quarters of 2022, an increase of nearly 14 per cent over the same period last year.

While every province in the nation postedyear-over-year increases,Alberta sawthe biggest boost, with a $3.1 billion bump for a total of $16.3 billion.

The statisticalagency said Alberta's gains accounted for nearly 40 per cent of the national increase in cash receipts, which representincome from the sale of agricultural commodities and direct payments, including subsidies.

Overall, the nation'sincrease in cash receipts wasdriven by high prices and demand, especially for grains, oilseeds and livestock, Statistics Canada said. Supply chain issues, high international demand and high input costs bolstered the prices.

"I think it's generally agreed that this was the most expensive crop that farmers in Alberta have grown in their careers," said Tom Steve, general manager of Alberta Wheat and Barley Commissions. "Fortunately, we had strong commodity prices."

According to Steve, farmers have faced a roller-coaster year with precipitation concerns, surging commodity prices and increased expenses.

J.P. Gervais, chief economist for Farm Credit Canada, said the news on cash receipts is welcome to many farmers, although he noted that farmers are facing high input costs for things such as fertilizer, feed and fuel.

"Overall, a good news story," Gervais said. "Higher prices, good demand for what we grow."

Farm cash receipts increases were also driven by record crop insurance payments due to the drought in Western Canada last year.Statistics Canada said that total direct payments jumped $3 billion to $5.4 billion, the largest amount ever paid.

Crop insurance payments accounted for the bulk of the increase in direct payments. About 85 per cent of the crop insurance payments went to Alberta and Saskatchewan.