February 11, 2008

Canadian grain farmers to benefit on record feed costs in 2008

The record high prices for grain indicate a good year for grain farmers, but a tough season for livestock producers, specifically hog raisers, Agriculture Canada said Friday.

Net farm income in Canada is forecast at CAD41,021 in 2008, a 16-percent increase, the department stated in its annual farm income forecast.

Average non-farm income is expected to be CAD55,386 per farm. At CAD96,407, total farm family income is expected to be substantially higher than in 2007, the report said.

However, net farm income for hog or cattle operation is forecast to fall due to higher input costs.

Jan Dyer of Agriculture Canada said that hog and cattle raisers are expected to face significant income declines in the next two years.

Dyer pointed that the higher crop prices which bolster grain farmers would spell out higher costs for livestock farmers.

Crop receipts overall are expected to rise 14 percent to a record CAD20.7 billion this year.

Cattle and hog producers, would have to battle with higher feed and energy costs and lower prices.

CAD1 = US$0.99 as of February 11, 2008