Fall in Crop Receipts Helps Drag 2024 Farm Income Lower

The steepest fall in crop returns in more than two decades badly dented Canadian farm income last year, according to preliminary numbers released by Statistics Canada Wednesday. 

The federal agency pegged 2024 realized net income for Canadian farmers at $9.4 billion, down $3.3 billion or almost 26% from the previous year. That marked the largest year-over-year percentage decline in realized net income since 2018, when it tumbled 41% to $4.2 billion, mainly due to sharply higher farm expenses. 

Stripping cannabis out of the equation made the fall in realized net farm income a bit less steep – down 23% to $9.7 billion – although still significant. 

Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind. 

Mainly the result of lower prices for most major grains and oilseeds, total Canadian crop receipts fell 6.2% to $52.1 billion in 2024, the largest percentage drop in crop receipts since 2003.  

Wheat (exl durum) returns in 2024 amounted to $8.4 billion, down 18% from a year earlier. Durum returns also plunged about 18%, falling to $1.8 billion. Canola returns fell 5.3% to $12.9 billion. National corn and soybean receipts declined 13.5% and 12%, respectively, to $3.1 billion and $3.7 billion. 

Prices for most major crops began to decline in 2023, following two consecutive years of strong growth, as domestic production recovered and supplies improved, StatsCan said. Ample domestic and international supplies continued to put downward pressure on the price of grains and oilseeds in 2024, leading to lower receipts, despite higher marketings, it added.