Canadian agriculture weathers the storm in 2004
Despite devastation in the beef sector, and thanks to a rebound in crop revenue, farm cash receipts have held up well.
Of all the thousands of economic statistics in Canadian agriculture in 2004, one stands out. Receipts from international exports of live cattle and calves: $0.
Long a standout performer in Canadian agriculture, the beef industry has been severely damaged by the May 20, 2003 closure of the U.S. border to live cattle.
As he looks beyond beef exports, Paul Murray sees reason for optimism. As Chief of the Farm Income and Prices Section for Statistics Canada, Murray notes that revenues were up in many sectors. In the first half of 2004, compared to the same period of 2003, farm cash receipts actually increased in seven of 10 provinces. Thanks to a major recovery in western grains and oilseeds, and in part to record government program payments of $2.3 billion, total Canadian farm cash receipts rose by 6.3% in the first half of 2004.
Events in the second half of 2004 – including disappointing crops in some areas – are not included in these numbers.
Farm cash receipts measure the gross revenue of farm businesses. They do not account for expenses incurred by farmers.
"Apart from the decline in beef receipts, the biggest themes in the first six months of 2004 are the recovery in farm cash receipts from crops, as well as record revenues in the hog sector and the continued stability in some other sectors," says Murray.
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Everyone hopes the U.S.border will open soon to Canadian cattle and calves. Until this happens,other sectors are contributing strongly. |
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Beef: domestic slaughter increases. Not surprisingly, the number of head sold for domestic slaughter increased – by 27% in the first six months of 2004. During most of the same period in 2003, the border was open. Overall cattle and calf receipts fell by 24.5%.
Crops make a comeback. Of the seven provinces that saw higher farm cash receipts in the first half of 2004, two are the important cattle-producing provinces of Alberta and Saskatchewan. The reason: mainly strong crop production.
"The years 2001 and 2002 were extremely bad years in terms of crop production in large parts of the Prairies," says Murray. "In 2003, production returned closer to normal."
Hog receipts at record level. Hog producers recorded cash receipts of $2 billion in the first six months of 2004. That’s a record. "The lion’s share, about $1.7 billion, was going to domestic slaughter," says Murray, "but a growing share of pigs has been going to the U.S."
Floriculture, sod and nursery continue to grow. One of the bright spots in Canadian agriculture is floriculture, sod and nursery production, and increasingly so.
In the first six months of 2004, floriculture, sod and nursery receipts were at an all-time high of $1.2 billion, compared to $519 million in the same period of 1994.
Authoritative figures for farm cash receipts for the second half of 2004 aren’t yet available. One factor Murray’s team will monitor closely is the impact of the August frost and other poor weather conditions in Western Canada.
Everyone hopes the U.S. border will open soon to Canadian cattle and calves. Until this happens, other sectors are contributing strongly.
Says Murray: "You can see in 2004 the benefits of the diversity and balance in Canadian agriculture."
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