Saskatchewan farmers' cash receipts for the five years ended 2021 outpaced increases in expenses by more than two to one.
Income revenues grew by 37.9 per cent to $19.46 billion during the period while gross operating expenses increased 16.5 per cent to $11.49 billion, according to Statistics Canada data.
About two-thirds of the increased cost pressure came in 2021
Across Canada income increased 17.96 per cent.
Family wages in this province rose a mere 8.6 per cent during the five years while non-family wages increased 13.5 per cent.
Significant expense increases were recorded in cash rents, up 17.8 per cent; fertilizer, up 39 per cent; farm fuel, up 11.3 per cent.
The increases in non-farm wages may reflect the trend to larger farms.
Farmers saved over $5 billion in payments to farm stabilization programs with $1.94 billion in 2021.
Direct payments to producers from farm safety net programs fluctuated from a low of $511 million in 2018 to $6.4 billion in 2019 and 2020 to $2.2 billion in 2021.
Depreciation expense, which amounts to tax-free money, and is intended for replacement of equipment and buildings, increased 40 per cent to $2.6 billion by 2021. The increases reflect more investment by farmers.
For the nine months ended October 2022 farm cash receipts in Saskatchewan amounted to $14.2 billion.
Ron Walter can be reached at [email protected]
