Canadian farm money receipts will enhance once more in 2022, though the positive factors shall be extra modest in contrast to a 12 months earlier, in accordance to a Farm Credit Canada forecast.

Released Tuesday, the FCC forecast suggests general farm money receipts will rise 4.6% to $82.9 billion this 12 months, in contrast to an anticipated 10% advance to $79.23 billion for 2021.

The 2022 forecast assumes robust crop costs will proceed this 12 months, outweighing an anticipated decline in deliveries in the wake of final 12 months’s punishing Prairie drought. The drought slashed the manufacturing of many crops by one-third or extra and meant {that a} good share of the 2021 harvest was truly bought again in the autumn, leaving much less to be bought in the New Year.

(FCC’s forecast for 2021 incorporates Statistics Canada farm money receipt estimates for the primary three-quarters of the 12 months and information from numerous different sources.)

Among the Prairie provinces, Saskatchewan is forecast to see the most important rise in 2022 farm money receipts versus a 12 months earlier, up 6.6% to $18.5 billion. Manitoba money receipts are projected to rise 2.2% to $8.33 billion, whereas only a 1% enhance is anticipated for Alberta to $17.9 billion. In Ontario, the place producers loved a powerful manufacturing 12 months, notably in phrases of corn and soybeans, this 12 months’s farm money receipts are seen rising 6.1% to $19.2 billion.

In phrases of particular person crops, FCC expects durum to be the strongest performer in 2022. Durum money receipts for the 12 months are estimated to attain $2.84 billion, up a whopping 32.6% from 2021. On the opposite hand, wheat (excl durum) receipts are projected to ease 0.2% to $6.94 billion. Canola receipts in 2022 are additionally seen declining barely from 2021 (-0.4%) to $11.94 billion.

Barley receipts are forecast to decline 12% to $1.24 billion in 2022 however oat returns are anticipated to enhance 11.3% to $831 million.

As for corn and soybeans, the FCC forecast predicts will increase of 13.7% and 9.9% in 2022 receipts, respectively, to $2.94 billion and $3.27 billion.

FCC’s outlook for the livestock sector is blended, with 2022 receipts for cattle and calves projected to complete $10.59 billion, up 4.3% from final 12 months. In distinction, hog receipts are anticipated to dip 1.8% to $6.12 billion.

FCC warned that farm money receipts are solely half of the equation for measuring profitability. Indeed, progress in farm money receipts doesn’t essentially imply that farm income are growing – particularly this 12 months with the fast rise of farm enter prices.

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