OTTAWA – Soaring canola and grain prices last year got the federal government off the farm subsidy hook to the tune of more than $1 billion.
Statistics Canada last week reported that farm cash receipts hit a record $25.45 billion in 1994, buoyed by a $1 billion increase in revenue from canola sales and a 34 percent increase in the value of wheat sales.
As a result, program payments from governments fell to $1.6 billion – a 43 percent drop from $2.8 billion.
The biggest declines came in Gross Revenue Insurance Plan payments, which fell $818 million from 1993. Crop insurance costs fell $298 million.
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While cattle and calf prices were down, the livestock sector recorded a two percent increase in receipts because of strength in the dairy industry.
According to Statistics Canada economists, canola receipts soared 81 percent because production has almost doubled in two years and prices were high.
Wheat, barley and corn producers also benefited from increased production and higher prices.
Farm cash receipts increased seven percent in Saskatchewan, to $4.5 billion last year. In Alberta, the increase was 9.5 percent to $5.49 billion.
Manitoba missed out on the bonanza because of a poor harvest. Receipts were stable at $2.83 billion.
