Canadian agriculture is in a period of robust growth, diversification, investment and strong revenues, Statistics Canada reports.
While fewer Canadians are growing and selling food, the proportion grossing at least $100,000 increased sharply to more than 30 percent of the total, according to the first results from the 1996 census of agriculture, published May 14.
The statistics show more than one in five Canadian farmers used a computer for farm management last year, gross receipts rose 21 percent over five years to $32.2 billion and average farm capital value last year was $567,778. Capital value increased 21.2 percent in five years.
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Average capital investment in the 1996 farm totaled $46,704, mostly for equipment. In Saskatchewan, the average farmer invested more than $47,000 in new machinery and equipment. Across Canada, farmers last year invested more than $6 billion in expansion, improvement and equipment.
The fastest growth in the farm sector was in the West, driven by exports.
Mel Jones, manager of the agriculture census for Statistics Canada, said last year’s statistical snapshot of the countryside was the most buoyant in his experience.
“This is my third census and it is definitely the most optimistic I have seen,” Jones said in an interview.
He acknowledged not all farmers may feel that.
“I know the farm organizations say that rising costs are eroding income. But I would say if prices are good, gross incomes are up, exports are up, investment is up, capital values are up, the sector is better off. I think it is self-evident.”
He noted an increase in livestock numbers on the Prairies, more exports and an increase in gross revenues during the past five years which outstripped increases in operating expenses, excluding depreciation or capital cost allowance.
“I think one of the big developments is diversification,” said Jones. “There even are 45,000 buffalo roaming the Prairies, more than we have seen in a very long time.”
Highlights of the Statistics Canada data included:
- The number of Canadians claiming to have sold some agricultural commodity last year was 274,955 – down 1.8 percent from 1991 and representing the smallest decline since farm numbers peaked in 1941.
- The number of Canadian farms reporting gross sales of $100,000 or more last year grew almost 11 percent in five years to 83,090. The increase in Saskatchewan was 30.6 percent, the largest in the country.
- The number of Alberta farms rose three percent to 58,990, mainly because of an increase in livestock operations. In the five years before 1991, the number of Alberta farms had fallen.
- Although wheat remained Canada’s largest crop at more than 30 million acres seeded, in 1996 it was at the lowest level in 20 years as farmers diversified into crops as varied as coriander, birdseed and alfalfa.
- Hay, alfalfa and other feed crops were the second largest crop in Canada, driven in part by a million-acre increase in alfalfa production.
- Computer use for farm management doubled during the past five years, mainly on larger farms. Saskatchewan and Manitoba farmers were not keen about computers.
- Although dairy production remained constant, the dairy herd was 6.6 percent smaller last year than in 1991 and there were almost 21 percent fewer dairy farms.
- Total farm debt increased 8.6 percent to $25.77 billion, more than $2 billion higher than in 1991.
“I guess the debt increase was one of the surprises for me,” said Jones. ” …I guess farmers are borrowing to invest in equipment or land.”
