The western producer february 25, 2016

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THURSDAY, FEBRUARY 25, 2016

VOL. 94 | NO. 8 | $4.25

DURUM EXPRESS SLOWING | P. 6 SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923

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FARM ECONOMIC ANALYSIS

Farm income outlook shines A 70 cent dollar and low oil prices protected farmers from declining commodity prices in 2015

REGINA BUREAU

Falling crude oil prices and the slumping Canadian dollar helped Canadian farmers earn record net cash income last year, says the federal government. Agriculture Canada said in its Feb. 19 Canadian Agricultural Outlook report that income will drop slightly this year but still be historically high. “Our analysis shows that 2015 and 2016 should be among the most successful years in the history of Canadian agriculture,” said Rodney Myer, director of the department’s farm economic analysis division.

2015 NET OPERATING INCOME IS EXPECTED TO SHOW AN

8% increase OVER 2014

Seth Abrahamson of Broderick, Sask., competed in the trainer challenge at the Equine Expo, Feb. 11-14 in Saskatoon. The competition involves four one-hour sessions each day to saddle break a horse. Here, he uses a technique to familiarize a horse to human contact. Abrahamson went on to win this year’s challenge. | WILLIAM DEKAY PHOTO

SEE THE AGRICULTURAL ENGINEERING AWARDS, PAGE 72.

Net cash income in 2015 is expected to be $15 billion, which is six percent higher than the 2014 record. The department forecasts a drop to $13.6 billion this year. Average farm family income is projected to reach $136,900 this year, 78 percent of which will come from off-farm wages and investments. Net operating income for 2015 is forecast at $77,287, eight percent higher than 2014. Myer said the lower dollar and crude oil prices have insulated Canadian farmers from the weakness detected last year in world commodity markets due to stron-

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ger supplies of most major commodities. Prices for most grains and oilseeds, beef, pork and milk all weakened over the year. Most commodities produced in Canada are traded in international markets, where they are priced in American dollars, Myer said. The depreciation of the dollar from an average of US91 cents in 2014 to 77 cents in 2015 and a forecasted 75 cents this year, will support farm cash receipts. The West Texas intermediate crude oil price has fallen from $100 in the summer of 2014 to an average $49.88 per barrel last year, saving farmers $500 million in fuel costs. “Looking out to 2016, we are using a conservative assumption that crude oil prices will strengthen to $51.31,” Myer said. SEE FARM INCOME, PAGE 5

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u|xhHEEJBy00001pzYv!:) FEBRUARY 25, 2016 Return undeliverable Canadian addresses to: Box 2500, Stn. Main, Saskatoon, SK. S7K 2C4 The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240

BY KAREN BRIERE


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