Outlook for Agriculture Sector Released

/EINPresswire.com/ -- OTTAWA, ONTARIO -- (Marketwired) -- 02/19/16 -- Agriculture and Agri-Food Canada

Today Agriculture and Agri-Food Canada released the 2016 Canadian Agricultural Outlook. The report provides a forecast of farm income in the agricultural sector for the previous and current calendar years (2015 and 2016), and looks ahead ten years to longer term trends that could impact the agriculture sector. Farm incomes are forecasted to reach record levels for Canadian farmers in 2015, and to remain above average for 2016.

A projected increase in both crop and livestock receipts contributes to these strong income levels for the sector in both 2015 and 2016. An increase in global trade and greater demand for agricultural commodities by developing countries present opportunities to further grow the Canadian agriculture sector.

Quick Facts

Canadian Agricultural Outlook Highlights:

--  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.
--  Average farm-level net operating income in 2015 is forecast to be
    $77,287, which is 8% higher than 2014.
--  Average net worth per farm is expected to reach $2.7 million in 2016.
--  The low Canadian dollar has improved the competitiveness of Canadian
    agriculture and food products in export markets, contributing to higher
    farm cash receipts.
--  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.
--  Lower crude oil prices are significantly reducing farmers' diesel and
    gasoline expenses.
--  Strong conditions over the past several years have contributed to a
    decline in program payments in 2015, down to $2.1 billion.

Quote

"Canada's agriculture and food industry is well positioned for continued success. The Government of Canada will support the continued growth of the sector by working closely with our provincial and territorial partners, investing in research and innovation here at home, and working to open new markets around the world."

- Lawrence MacAulay, Minister of Agriculture and Agri-Food

Associated Links

- Canadian Agricultural Outlook

- Economic Publications

Background

The Canadian Agricultural Outlook is one of Agriculture and Agri-Food Canada's measures of the strength of the agriculture sector and its contribution to Canada's economy. This forecast represents an outlook for farm cash receipts, expenses and net incomes. The report also highlights the trends that are expected to influence global agriculture and agri-food markets over the medium term (2016 to 2025).

The analysis presented in this report is prepared in consultation with provincial governments and Statistics Canada and can be used as a benchmark for governments and industry planning.

Media Information

--  B-roll package for the 2016 Canadian Agricultural Outlook is available
    for media use:
    http://multimedia.agr.gc.ca/22780/22780-video-1920x1080.mp4

--  Audio recording of the recap of the technical briefing, for media use:
    http://multimedia.agr.gc.ca/22780/22780-audio-eng.mp3

--  Recap of the technical briefing - check against delivery, for media use
    http://Multimedia.agr.gc.ca/media/CANAG2016ENG.pdf

--  Images for the 2016 Canadian Agricultural Outlook are available for
    media use:
    https://www.flickr.com/photos/aafc_canada/albums/72157664669179282

Follow us on Twitter: @AAFC_Canada

Contacts:
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972

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