New data from Statistics Canada shows Canadian farmers saw a healthy boost to their bottom lines in 2023, with average net operating income rising 8.2% to $142,466. Total average operating revenue hit $760,886, while expenses climbed nearly in lockstep, up 7.3% to $618,420.
But not all farm types shared equally in the gains. Grain and oilseed producers once again took the lead, buoyed by strong wheat, barley, and canola returns. Operating profit margins for these farms averaged 28.7 cents per dollar of revenue — the highest among all sectors — with Saskatchewan alone reporting a margin of 25.9 cents.
The spike in revenue was largely tied to a return to normal production levels after the 2021 drought. In the Prairie provinces, which make up over half of Canada’s total farm revenue, oilseed and grain farms brought in a staggering $36.7 billion in 2023.
Potato farmers also had a banner year. Net operating income surged 22.3% to $763,405 — second only to grain producers — thanks to improved contract prices and the resumption of U.S. exports. P.E.I. alone accounted for 20% of national potato revenues.
Meanwhile, the livestock sector saw a 9.3% increase in total revenue, led by beef cattle. Alberta continued to dominate, with its cattle farms responsible for over 60% of the sector’s revenue. The average beef cattle farm pulled in $585,177, up 12.4% from 2022.
However, not every corner of Canadian agriculture shared in the success. Hog and pig farms reported a 2.7% drop in revenue to $6.9 billion, and recorded the lowest operating profit margin at just 3.4 cents per dollar of revenue. A combination of rising feed costs, labour issues, and weak international demand pushed many swine producers to the brink — and out of the industry altogether.
While crop producers and cattle operations head into 2024 with momentum, the pressure is mounting for Canada’s hog sector to find firmer ground.
