Canadian Farm Income Sees Sharp Decline

Canadian Farm Income Sees Sharp Decline
May 29, 2025
By Jean-Paul McDonald
Assistant Editor, North American Content, Farms.com

Realized net income dropped by 25 percent in 2024

In 2024, Canadian farmers experienced a significant financial setback, with realized net income dropping by $3.3 billion, or 25.9%, to $9.4 billion according to Statistics Canada.

This marks the steepest percentage decrease since 2018. When cannabis is excluded, the drop stands at 23.0%, totalling $9.7 billion.

Realized net income, which includes farm cash receipts minus operating expenses and depreciation, decreased across almost all provinces. Only Prince Edward Island and Nova Scotia avoided losses.

Saskatchewan experienced the most substantial decline of $1.3 billion due to a drop in crop prices and a slight rise in expenses.

Farm cash receipts across Canada fell by $1.6 billion, totalling $97.9 billion. Crop receipts were especially hit, falling 6.2% to $52.1 billion — the largest decline since 2003. The Prairies, particularly Saskatchewan, Alberta, and Manitoba, saw the biggest drops due to lower grain and oilseed prices.

Direct payments to farmers also fell by 10.8% to $5.9 billion. Crop insurance payments, which form a large part of these payments, declined, especially in Alberta and Saskatchewan. However, AgriStability payments and private hail insurance saw sharp increases, helping ease some losses.

On the other hand, livestock receipts increased by 6.9% to $39.9 billion. Cattle and calves saw an 11.6% rise in receipts due to strong prices and demand. However, poultry receipts declined due to lower prices caused by higher production and lower feed costs.

Canada’s total net income fell by $5.2 billion to $7.7 billion in 2024, marking a year of financial difficulty for farmers despite strong livestock markets.

As expenses continue to grow and crop prices decline, farmers are facing a challenging economic environment across Canada.