The federal government's 2016 Canadian Agriculture outlook shows 2015 was a banner year for farm income and while net cash income is declining in 2016, it's still above the average set between 2010-2014.
There is a projected increase in both crop and livestock receipts as well as an increase in global trade and greater demand for agricultural commodities by developing countries.
Rodney Myer is a director with the Farm Economic Analysis Division and says the low dollar has helped in some cases.
"The significant depreciation in the Canadian dollar from an average value of $ .91 US in 2014, to $ .77 US in 2015 and a forecast of $ .75 US in 2016 is expected to provide considerable support to farm cash receipts," says Myer. "Most of the major commodities produced in Canada are traded in international markets where they are priced in US dollars. When the currency depreciaties, Canadian producers receive a higher price in Canadian dollars for commodities traded in international markets."
Net cash income in 2015 is estimated to increase by 6% over 2014, reaching a record $15.0 billion. A decline of 9% to $13.6 billion is expected in 2016, still 14% higher than the 2010-2014 average.
Livestock receipts in Canada are expected to increase by 2% to $26.2 billion in 2015.
Crop receipts are expected to have increased 2% to reach $30.7 billion in 2015, and remain virtually unchanged at $30.6 billion in 2016.
