Based on 1996 tax data compiled by Revenue Canada, the federal government reported last week that farms with mixed livestock operations were the most profitable, averaging $73,238 in net operating income.
The greatest gains came on hog farms, where the net operating income soared 49.2 percent in one year to $41,497.
Grain farms, with average profits of more than $26,000, gained just five percent on the year. Input costs rose faster than revenues.
Average farms in the supply managed sectors saw operating margins fall.
The information released by Statistics Canada reported net operating income before depreciation. It included unincorporated farms with gross revenues of $10,000 or more, and incorporated farms with at least $25,000 in sales.
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Overall, the federal agency said average operating revenues rose five percent while expenses increased 5.8 percent.
Machine prices rise
Average farm machinery prices increased 3.8 percent during the past year, according to Statistics Canada.
And during the past 11 years since the price index has been plotted, average farm machinery costs have risen 53.4 percent.
During the past year, average tractor prices increased 2.6 percent while other farm machinery costs soared 4.8 percent.
Federal economists blamed much of the price inflation on Canada’s weak currency.
“Much of the increase in both quarterly and annual prices was due to the appreciation of the U.S. dollar, which moved up 1.7 percent against the Canadian dollar over the last quarter and four percent over the fourth quarter of the preceding year,” said a Statistics Canada commentary.
“This is why imported prices went up much more than domestic prices.”
Mulock elected
Toronto-based meat industry executive William Mulock has been elected president of the Canadian Meat Council.
The president of Tasty Chip Steak Products Ltd. has been vice-president of the lobby group representing Canada’s $9.6 million meat processing industry.
He used his acceptance speech to urge implementation of one national uniform meat inspection system, patterned after the federal program and standards.
Positive trade balance
The value of Canadian agricultural and fish product exports increased 4.4 percent last year to $23.18 billion, according to federal statistics.
And the value of imports increased 10.1 percent to $15.549 billion.
The result was a food trade balance of $7.63 billion last year in Canada’s favor.
