Farmers experienced a sharp drop in earnings last year as falling crop prices and higher operating costs cut profits.
Total net farm income dropped by $5.2 billion to $7.7 billion in 2024, a 40 per cent decline from 2023. It was one of the largest year-over-year decreases in recent history, highlighting growing financial pressure in the agricultural sector.
Realized net income fell 25.9 per cent to $9.4 billion. Excluding cannabis, the figure stood at $9.7 billion, still down 23 per cent from the year before.
Saskatchewan was hit hardest, with net income falling by $1.3 billion due to a sharp drop in revenues from grains and oilseeds. Crop receipts in the province were down $1.7 billion. Alberta and Manitoba also saw steep declines of $1.1 billion and $662.9 million, respectively.
Nationally, crop receipts fell 6.2 per cent to $52.1 billion, the largest percentage drop since 2003. Higher global and domestic supplies put downward pressure on prices for key crops, despite steady or rising sales volumes.
Direct payments from government programs to farmers fell 10.8 per cent to $5.9 billion in 2024 as a result of the lower crop insurance payouts.
In Alberta and Saskatchewan, crop insurance payments fell by $283.9 million and $226.9 million, respectively. Smaller increases in AgriStability and private hail insurance payments helped cushion the drop but were not enough to reverse the overall trend.
Livestock receipts rose 6.9 per cent to $39.9 billion. The increase was led by strong demand for beef, which pushed cattle and calf revenues up 11.6 per cent to $16.7 billion.
Prices for cattle and calves were more than 50 per cent higher than the five- and ten-year averages, supported by lower herd numbers in Canada and the United States.
The supply-managed sector, including dairy, eggs, and poultry, grew more modestly at 2.0 per cent. Gains in milk and egg revenues were offset by lower poultry prices, driven by higher production and reduced feed costs.
Farm operating expenses rose 2.4 per cent to $78.3 billion. Interest expenses were the largest contributor, jumping 28.6 per cent as producers took on more debt during a period of rising rates. Total farm debt rose 14.1 per cent, the highest annual increase since 1981.
Livestock and poultry purchases also increased, climbing 12.6 per cent to $4.3 billion due to higher prices, even as the number of animals sold across provinces declined.
However, some costs moved lower. Feed expenses dropped 10.7 per cent to $10.4 billion, and fertilizer costs fell 7.2 per cent to $9.1 billion, reflecting improved global supplies and lower natural gas prices.
Only Prince Edward Island and Nova Scotia avoided a drop in realized net income. All other provinces reported declines.
Total farm expenses reached $88.6 billion in 2024, up 2.0 per cent from the year before. Despite falling commodity prices, overall costs rose in every province except Newfoundland and Labrador and Manitoba.
Canada’s total net income from farming was $8.0 billion in 2024, down from $12.9 billion the previous year.