Agriculture Canada’s farm income forecast masks the crisis that still grips much of Western Canada’s farm community, says the executive secretary of the National Farmers Union.
The forecast for the 2000 calendar year suggests realized net farm incomes across the Prairies should rise this year compared to 1999.
But Darrin Qualman said much of the increase is due to direct government payments.
“If they start withdrawing those government payments, those net farm incomes quickly turn negative,” Qualman said.
“Clearly we still have a farm income crisis of disastrous proportions.”
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The forecast by Ag Canada suggests this year’s realized net farm income will surpass the average of the previous five years in each of the prairie provinces.
Saskatchewan’s realized net income will rise to $673 million this year, according to the report. That is more than double what it was in 1999.
The Canadian Federation of Agriculture agreed there are glimmers of hope in the forecast, including the outlook for cattle and hog producers.
However, CFA executive director Sally Rutherford also drew attention to the direct payments from government. Those numbers will be higher this year, she said, partly because they include government support that should have gone to producers in the past couple of years.
Rutherford and Saskatchewan Wheat Pool president Marvin Wiens said the forecast again highlights the need for a consistent, long-term farm support program.
“There is a little bit of light on the horizon,” said Wiens. “At the same time there are lots of people struggling.”
Rutherford said this year should at least provide some of the money needed by farmers to start reinvesting in their operations.
“I think there’s an awful lot of machinery out there being held together with baler twine.”
