OTTAWA (Staff) – Except in Quebec, farm bankruptcies are down sharply this year compared to last year, the federal government has reported.
To the end of July, 188 Canadian farmers had declared bankruptcy this year compared to 245 during the same seven months of 1993.
The sharpest drop came in Saskatchewan, where bankruptcies fell 35 percent, to 79 from 121.
Economists say better commodity prices and more off-farm income are major reasons for the decline. As well, many of the most financially vulnerable operations went out of business earlier.
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While bankruptcy statistics do not catch most farmers who are driven from the land by finances, economists say they are one barometer of the financial state of the sector.
A falling deficit
The federal deficit is falling sharply.
During the first four months of the current budget year, Ottawa says it spent $12.4 billion more than it took in.
Bad as that sounds, it is actually much better compared to last year.
To the end of July, 1993, the Conservative government was running a deficit of $15.95 billion.
Finance department officials say a combination of increased income and corporate tax collections, as well as a small decline in spending, contributed to the falling deficit.
Prices off in July
Average crop and livestock prices fell during July, according to Statistics Canada.
At the end of the month, average farm price levels were just 4.6 percent above 1986 levels, according to the agency’s farm product price index.
The federal agency said falling cereal and oilseed prices dropped the crops index 1.5 percent in July to a level almost three percentage points below the 1986 average.
Cereals prices fell 24 percent below 1986 levels.
Despite recent declines, average oilseed prices remain 42 percent above 1986 levels.
In livestock, cattle and calf prices were down two percent month-over-month but remained 116 percent above 1986 levels.
Hog prices are 10 percent lower than eight years ago.
