Farmers in Quebec can expect to end 2007 with total net farm income in the neighbourhood of $425 million, showing a “relative stability” across the ag sector overall, according to a new economic report from the provincial farm lender.
L’Agroindicateur, an index released annually by La Financiere agricole based on its own data and federal and provincial statistics, predicts those figures based on the effects of the rising Canadian dollar, its consequences for the processing sector and the rise in North American demand for cereals.
Given the current track for farm cash receipts and barring any unforeseeable problems, net ag income is predicted to remain relatively flat in Quebec after falling to $433 million in 2006, down from $578 million in 2005, the agency said.
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Market conditions showed improvement in the first half of the year, the report noted, with farm receipts up 24 per cent for corn growers, five per cent for livestock producers, three per cent for dairy farms and eight per cent for poultry producers.
Agriculture Minister Laurent Lessard said in a release Wednesday that the results show the importance of farm stabilization programs, which are administered by La Financiere agricole, in helping farms absorb the effects of unfavourable market conditions on their profitability.
Jacques Brind’Amour, president of La Financiere agricole, said that while l’Agroindicateur foresees stability in revenues, the report in context suggests prudence in coming months and that farmers develop effective management plans, which means controlling operating costs and investing strategically in their businesses.
The report notes that the rising dollar has prevented Quebec livestock producers from profiting off the U.S. meat market in recent months. Furthermore, increased corn prices from the biofuel market are also a source of concern for livestock producers.
