Realized Net Farm Income Down in 2022 as Expenses Rise

May 25, 2023

After two years of big gains, realized net farm income for Canadian farmers fell in 2022, undermined by rising expenses. 

A Statistics Canada farm income report Thursday pegged national realized net farm income for this past year at $12.5 billion, down 9.5% from a year earlier. The decline follows a nearly 51% increase in 2021 and a 79.1% jump in 2020. (Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind). 

Although total farm cash receipts were up 14.8% to $95 billion in 2022, that increase was more than offset by 21.2% increase in expenses to $72.5 billion, as farmers faced higher costs for key agricultural inputs, including fertilizer, feed and fuel. It marked the largest year-over-year increase in farm expenses since a 22% jump in 1974 and easily topped the previous year’s increase of 9.6%. 

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