Okanagan Lavender Farm
The Okanagan Lavender Farm operations in Kelowna.
Agriculture and Agri-Food Canada has completed an analysis of farm income for 2020 and 2021, and the results show that Canadian farm income and the value of farms is expected to be at an all-time high.
The agriculture sector is expected to see significant growth in key financial areas for 2020 and 2021, according to Marie-Claude Bibeau, the Minister of Agriculture and Agri-Food.
Net cash income (NCI) is forecast to have grown by 21.8 per cent in 2020, from $13.5 billion in 2019 to $16.5 billion in 2020. Farm-level income is also forecast to have increased in 2020, with average net operating income (NOI) per farm increasing by 25.4 per cent, from just under $76,000 in 2019 to approximately $95,000 in 2020. Average farm family income is forecast to have increased by 8.6 per cent to just over $194,000 in 2020.
Bibeau says there continues to be uncertainty surrounding COVID-19, but based on the expectation that normal market conditions return, NCI is forecast to further grow in 2021 by 6.8 per cent to $17.6 billion. Average farm-level NOI is forecast to increase 8.5 per cent to approximately $103,000 per farm, and average farm family income is forecast to grow 7.2 per cent to just under $208,000. Net worth is forecast to reach $3.5 million per farm, up 2.9 per cent from 2020 levels.
The sector also had a strong export showing in 2020, reaching nearly $74 billion, up from $67 billion in 2019. This brings the government close to achieving its target of $75 billion in agri-food and seafood exports by 2025. The sector has shown resilience in posting a record performance for agriculture and agri-food exports, despite COVID-19 and its challenges. The agricultural sector is an engine of growth, helping to restart the Canadian economy.