Farm cash receipts in most of Canada increased sharply in the first half of 2011, driven by higher grain, oilseeds and hog receipts, says Statistics Canada.
Program payments also soared 25 percent over last year’s first six months mainly because of increased payments in Quebec and crop insurance in Saskatchewan.
The federal agency reported this week that only Manitoba and British Columbia recorded lower farm cash receipts to June 2011.
The numbers do not represent realized net farm income since production costs are not included yet.
The federal agency said higher crop revenues were caused in part because of poor growing conditions, reduced seeding and lower production around the world. “The $1.3 billion increase in crop receipts was primarily a result of higher prices for most major grains and oilseeds which more than compensated for reduced marketings,” said Statistics Canada analysts.
One notable item in the farm receipts report was a dramatic increase in hog receipts and a rebound in the industry.
Even though sales were down, higher prices meant receipts were 9.3 percent higher than a year ago at $1.9 billion.
Average hog prices were 12.2 percent higher than last year. “This marks the highest January-to-June average price since 2005,” said the government agency.
The most dramatic increase came in the dry pea sector where receipts rose almost 80 percent to $416 million because of higher prices and sales.
Wheat receipts were up 25.5 percent with a slow growth in durum receipts dragging the average down.
Program payments to farmers rose to $1.4 billion after years of decline. Provincial payments helped raise Quebec farm receipts 16 percent and Saskatchewan’s by 8.1 percent.
Alberta, with a farm receipt increase of $700 million on the basis of higher farm gate prices, recorded the largest dollar improvement and the second-best percentage increase at 16 percent.
