Page No.
Alberta Farm Income in 2012…………………………………………………………………………………..…………………...…..
6
Table No.
1.
Selected Farm Income Statistics, Canada and Provinces, 2008-2012 ………………………………………………………………….……..
8
2.
Farm Cash Receipts by Type, Alberta and Canada, 2011 and 2012 ……………………………………………………………..……….
11
3.
Alberta Farm Cash Receipts by Type, 1983-2012 ………………………………………….…………………………………...….
14
4.
Alberta Farm Cash Receipts From the Sale of Crops, 1983-2012 …………………………………………….……………………………………………
15
5.
Alberta Farm Cash Receipts From the Sale of Livestock, 1983-2012 …………………………………………………….…………………………………
17
6.
Alberta Farm Operating Expenses and Depreciation, 1983-2012 ………………………………………….………………………………………………
18
7.
Alberta Net Farm Income, 1983-2012……………………………………………………………….………………………………………………….…..
21
8.
Value of Alberta Farm Capital and Value Per Acre of Farm Land and Buildings, at July 1, 1983-2012………………………………………………
22
9.
Alberta Farm Debt Outstanding by Lender, at December 31, 1983-2012……………………………………….……….
23
(1)
Source: Adapted from Agriculture and Agri-Food Canada and Statistics Canada,
Understanding Measurements of Farm Income
,
Publication No. 2060/B and Cat. No. 21-525-XIE, November 2000, Section 1 "Agriculture Economic Statistics Program Measures".
(2)
Statistics Canada, Census of Population
Components of Net Farm Income Measures
Farm cash receipts
include revenues from the sale of agricultural commodities, program payments from government agencies,
and payments from private crop and livestock insurance programs. Receipts are recorded in the calendar year (January-
December) when the money is paid (cash basis) to farmers. Farm to farm sales are excluded. They are assumed to cancel each
other out, and have no net impact.
Farm operating expenses
represent business costs incurred by farm businesses for goods and services used in the production
of agricultural commodities. Expenses, which are recorded when the money is disbursed by the farmer, include property taxes,
custom work, livestock purchases, rent, fertilizer and lime, pesticides, machinery and building repairs, fuel for heating and
machines, wages, interest and business share of insurance premiums.
Income-in-kind
measures the value of the agricultural goods produced on farms and consumed by farm operator families. It is
included to measure total farm production. There is no monetary disbursement related to income-in-kind. It is calculated using
Statistics Canada estimates of per capita food consumption, coupled with Census (2) measurements of the farm population and
the average prices that producers would have received in the marketplace.
Depreciation charges
account for the economic depreciation or for the loss in fair market value of the capital assets of the farm
business. There is no monetary disbursement associated with depreciation. Calculated on farm buildings, farm machinery, and
the farm business share of autos, trucks and the farm home, depreciation is generally considered to be the result of aging, wear
and tear, and obsolescence. It represents a decrease in the potential economic benefits that can be generated by the capital
asset.
Value of inventory change (VIC)
measures the dollar value of the physical change in producer-owned inventories. This concept
is used to value total agricultural economic production. To calculate VIC, the change in producer-owned inventories (between the
end and the beginning of a calendar year) is first derived and then multiplied by the average annual crop prices or value per
animal. This calculation is different from the financial or accounting book value approach, which values the beginning and ending
stocks, and then derives the change.
Measures of Net Farm Income (1) - Definitions
The agriculture economic statistics program uses three aggregate measures of net farm income:
Net cash income
measures farm business cash flow (gross revenue minus operating expenses) generated from the production
of agricultural goods. Net cash income represents the amount of money available for debt repayment, investment or withdrawal
by the owner.
Realized net income (RNI)
measures the financial flows, both monetary (cash income) and non-monetary (depreciation and
income-in-kind), of farm businesses. Similar to net cash income, realized net income represents the net farm income from
transactions in a given year, regardless of the year the agricultural goods were produced.
Total net income
measures the financial flows and stock changes of farm businesses. Total net income values agriculture
economic production during the year that the agricultural goods were produced. It represents the return to owner's equity, unpaid
labour, management and risk.
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Alberta Agriculture Statistics Yearbook, 2012