February 26, 2008

Grain boom propels Canadian farmers' income to record high

Canadian farmers posted record high revenue in 2007, attributed to higher grain and oilseed prices, Statistics Canada reported Monday.

Total cash receipts from crop and livestock revenues reached US$40 billion last year, up 9.5 percent from 2006 and 11.8 percent above the previous five-year average.

Last year's sales marked the first time that receipts surpass the US$40-billion level, the federal agency said.

Statistics Canada said dairy, poultry and egg producers received higher revenues. Meanwhile, cattle and hog farmers were squeezed by a combination of lower prices, higher feed costs, and the higher Canadian dollar.

With grain and oilseed prices as the driving force for the record revenues, deliveries were notably strong as a result of producers drawing on their stocks to benefit from the high prices.