Average total income of farm operators in Canada in 2014 increased by 1.7 per cent compared with 2013 said Statistics Canada, basing their report on the latest complete statistics that were made available to them.
The average farmer income two years ago was $95,331 based on personal income tax returns.
Average income from off-farm sources rose 3.7 per cent in 2014 compared with 2013 coming in at $46,874 while average net operating income was virtually unchanged at $48,457. Off-farm income accounted for 49.2 per cent of the total income of farm operators in 2014, up from 48.2 per cent a year earlier.
The growth in average off-farm income registered in 2014 resulted mainly from a 3.2 per cent increase in labour income, which averaged $26,546, and from a 6.2 rise in investment income which averaged just over $11,000.
Farm operators specialized in hog and pig farming reported the largest gain of over 106 per cent in average total income in 2014 largely the result of average net operating income, which almost tripled as hog revenues were boosted by stronger prices. Average total income of hog farm operators reached $212,556, well above the income of operators who specialized in potato production and that of farmers who focused on poultry and egg production which typically post the highest averages.
The average total income of beef cattle farms increased 24.2 per cent to $67,069 in 2014, mainly because of higher cattle and calf prices, which were up because of low North American inventories. Both average net operating income (+108.3 per cent) and average off-farm income (+8.3 per cent) contributed to the gain in average total income.
All other major farm types posted increases in average total income in 2014, except farm operators primarily engaged in other animal production, which were down 14.6 per cent, oilseed and grain farming (-6.2 per cent), or poultry and egg production (-1.6 per cent) who saw there average total income fall as a result of lower average net operating income. Farmers who specialized in other animal production also posted a decline in average off-farm income, indicating a slide of 1.5 per cent.
Average total income of farm operators increased in six provinces in 2014 with gains ranging from one per cent in British Columbia to 15.3 per cent in New Brunswick. Average total income decreased in Nova Scotia by 13.9 per cent, Newfoundland and Labrador (-2.9 per cent), Alberta (-1.6 per cent) and Ontario (-1.1 per cent).
For a second consecutive year, farm operators in Newfoundland and Labrador earned the highest average total income, coming in with $110,691. They were followed closely by those in Alberta at $108,743 and Saskatchewan $105,292.
