Census shows farmers earn 15 per cent less than in 1996

Census Canada figures show that Canadian farmers are much worse off than they were five years ago, when the results of the last agriculture census came out.

While individual sectors are prospering, the industry as a whole saw a 10 per cent increase in costs but profits went down by five per cent.

Wilson Freeman, a spokesperson for Census Canada, says dairy, hogs and other sectors of the farm economy lifted the figures, while grain and oilseed producers were taking a big hit.

The figures show that Quebec farmers appear to be doing better financially than Ontario farmers, though expenses in both provinces rose faster than revenues.

Prices Quebec farmers received for their products increased by 7.3 per cent while expenses rose by 8.7 per cent. In 2000, a Quebec farmer spent 83 cents to make a buck. In 1995, he spent 80.1 cents to make a buck.

Freeman said Quebec is the largest dairy producer and the largest hog producer. Except for 1998, 

when hogs took a dive, those two sectors have had stable prices. Ontario, on the other hand, has more farmers tied up in crop production.

While Ontario farmers like their Quebec counterparts strove to become more efficient through consolidation over the five year period profits didn't keep pace in Ontario. Over five years, the amount of money farmers in Ontario received for their products rose by 1.8 per cent, but input costs increased by 8.7 per cent, the same as in Quebec. According to Census Canada, an Ontario farmer's operating expenses in 2000 amounted to 86 cents of every dollar made. In 1995, he spent 84.1 cents to make a dollar.

Capital costs are not included in this figure, though interest paid for capital cost purchases are included.

Alberta appears to have the highest costs. A farmer there spends 90 cents to make a buck. But Freeman points out that large feedlots are included and they turn over animals every three months. A breakdown of cow-calf operators would tell a different story, he says.