Alberta Agriculture Statistics Yearbook, 2012
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Alberta Farm Income in 2012
Farm Cash Receipts
In 2012, Alberta’s total farm cash receipts (FCR) set a second consecutive record at $12.0 billion, up 14.1 per cent from
$10.5 billion in 2011, and 25.7 per cent above the 2007-2011 average. The marked increase was due to substantially higher
crop market receipts coupled with increases in livestock market receipts and program payments to producers.
FCR is the
sum of crop and livestock market receipts plus direct program payments to producers. Total farm market receipts (the sum
of crop and livestock market receipts, excluding program payments) also reached a new industry high of $11.2 billion, and
were 14.2 per cent above 2011.
The province’s crops sector experienced another exceptional year in 2012. Crop market receipts increased substantially to a
record $6.3 billion, up 22.4 per cent from 2011, and 46.9 per cent above the 2007-2011 average. The jump in receipts was
driven largely by stronger prices and marketings. Crops with record receipts in 2012 were canola (up 17.2 per cent, to $3.1
billion), wheat (up 29.0 per cent, to $2.1 billion), dry peas (up 14.0 per cent, to $291.0 million), and potatoes (up 24.1 per
cent, to $176.5 million). Other notable increases included barley (up 12.0 per cent, to $277.4 million), flaxseed (up 156.8 per
cent, to $21.4 million), and sugar beets (up 3.1 per cent, to $37.2 million). Significant declines in receipts were reported for
oats (down 19.4 per cent, to $38.8 million), and lentils (down 37.0 per cent, to $20.7 million).
Strong receipts were not only evident in the crops sector, as Alberta’s livestock market receipts reached its highest level
since 2002. Livestock market receipts increased 5.1 per cent to $4.9 billion, the third consecutive annual increase. These
receipts were 12.5 per cent above the 2007-2011 average. The gain in total receipts was fuelled largely by stronger prices.
Receipts for cattle and calves were up 5.8 per cent, to $3.4 billion, the highest level since 2002. Dairy increased 3.3 per
cent to a sixth consecutive industry high of $520.7 million. Also showing higher receipts were poultry (chickens, hens, and
turkeys) up 9.3 per cent to $259.5 million, eggs and hatcheries up 10.9 per cent to $70.6 million, and honey up 9.0 per cent,
to $63.2 million. Lower receipts were recorded for hogs (down 1.0 per cent, to $412.5 million), and lambs (down 17.8 per
cent, to $17.8 million).
Direct program payments to Alberta producers increased 12.9 per cent to $769.2 million. The gain was mainly attributed to a
substantial jump in Crop and Hail Insurance payments (up 56.0 per cent, to $567.8 million). AgriRecovery payments
remained more or less flat (up 0.3 per cent, to $21.4 million). Payments under AgriStability were down 54.5 per cent, to
$90.0 million, and AgriInvest payments dropped 16.3 per cent, to $75.3 million.
Total Canadian FCR also increased in 2012, up 7.5 per cent to $53.7 million, with all provinces posting increases.
Accounting for over one-fifth (22.4 per cent) of the national total, Alberta ranked first in total FCR ($12.0 billion). Following
were Saskatchewan ($11.8 billion) and Ontario ($11.8 billion). The province ranked second in crop market receipts at $6.3
billion, behind Saskatchewan ($9.2 billion). In livestock market receipts, Alberta ranked third ($4.9 billion), following Ontario
(
$5.3 billion), and Quebec ($4.9 billion). Alberta was third highest in program payments to producers ($769.2 million), behind
Saskatchewan ($948.8 million), and Quebec ($769.3 million). The province led the nation in cattle and calf market receipts
with over one-half (51.7 per cent) of the national total.
Farm Operating Expenses and Net Farm Income
In 2012, total farm operating expenses (net of rebates) was a record $9.1 billion, up 6.2 per cent from 2011. The increase
was largely attributed to higher input costs, notably commercial feed (up 14.4 per cent, to $1.4 billion), machinery fuel and
repairs (up 1.7 per cent, to $1.2 billion), fertilizer and lime (up 9.2 per cent, to $1.2 billion), livestock and poultry purchases
(
up 8.3 per cent, to $972.6 million), and cash wages and room and board (up 3.5 per cent, to $664.8 million).
Overall, 2012 was a record setting year for most measures of Alberta’s farm income. Although Statistics Canada did not
officially release 2012 farm income estimates, Alberta Agriculture and Rural Development estimated Alberta’s net cash
income (difference between total FCR and total expenses) at about $2.9 billion, a new record high and 49.6 per cent higher
than in 2011. Net cash income when adjusted for depreciation (a non-cash cost of $1.5 billion) resulted in a record realized
net income (RNI) of $1.4 billion, up significantly from $490.0 million in 2011. Due to lower on farm inventories, total net
income (RNI adjusted for inventory change) decreased to $661.4 million in 2012, compared to $897.9 million in 2011.
Farm Debt Outstanding and Value of Farm Capital
Alberta’s total farm debt outstanding at December 31, 2012 increased 6.2 per cent, from a year previous, to $16.0 billion.
The largest lender type was chartered banks, who were owed $6.1 billion (38.2 per cent of the total farm debt), marginally
down 0.9 per cent from 2011. The next largest group consisted of federal government agencies such as the Farm Credit
Corporation and the Business Development Bank of Canada. This group was owed $4.3 billion (27.2 per cent of total farm
debt), an increase of 9.9 per cent from 2011. Provincial government agencies, such as the Agriculture Financial Services
Corporation and Alberta Treasury Branches, followed with a total of $3.2 billion in loans to Alberta producers (20.3 per cent
of total farm debt), 13.7 per cent higher than in 2011. Credit Unions accounted for $715.0 million in loans to farmers, up 3.3