After two years of drought and
5/27/2005

After two years of drought and the fallout from mad cow disease, farmers’ net cash receipts rebounded last year to $6.3 billion, reported Statistics Canada this week. The agency said producers saw their net cash incomes – the difference between cash receipts and expenses – rise 34.4 per cent from the low received in 2003, although this was still 1.0 per cent below the previous five-year average.

NAEDA UPDATE
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Crop receipts staged a solid rebound in 2004 from one of the lowest levels in a decade. Production of grains and oilseeds returned to more normal levels in 2003 following two consecutive droughts in Western Canada. In the all important livestock category, cash from livestock sales rose 6.0 per cent to $17.2 billion in 2004, just marginally higher than the previous five-year average of $17.1 billion. Revenues from cattle and calves decreased slightly from 2003 to $5.1 billion, the lowest level since 1996 and almost 25 per cent below the previous five-year average. Prices plummeted with the discovery of mad cow disease during the spring of 2003, and despite some gains, the average 2004 price remained 12.9 per cent below that of 2003.

Receipts from international trade in live cattle and calves fell to nothing in 2004 from $581 million in 2003, a result linked to the U.S. border closing to these animals. On the other hand, receipts for hog producers hit a record high.

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