Protect profitability: Key tools for farm financial fitness

Farm income statements facing pressure

Canada’s farm economy slowed down in 2024, so what’s ahead for farm income statements?

Canadian farm cash receipts totalled C$97.9 billion in 2024. That’s a year-over-year decrease of 1.6% after reaching a new record the previous year. The decline was driven by crop prices falling 13.8% but was moderated by a 7.6% increase in livestock and animal product prices. Overall farm operating expenses grew in 2024: the farm input price index for crops fell 0.2% while the animal products index increased 1.5%. Farm net cash income (revenues minus operating expenses) decreased in 2024, to $19.6 billion.

Looking ahead, farm cash receipts are projected to increase 8.5% in 2025, but given all the uncertainty stemming from global trade disruptions this forecast could come in lower. Both crop and livestock receipts are expected to grow in 2025, led by strong cattle prices due to a small North American herd size and strong exports of wheat and canola. Globally, agricultural commodity prices have been under pressure as markets face uncertainty in trade.

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