Total farm cash receipts down 1.4% in the first half of 2009

Statscan - Total farm cash receipts, which include crop and livestock revenues plus program payments, amounted to $22.3 billion in the first half of 2009, down 1.4% from the same period last year.

Market receipts for Canadian farmers from the sale of crops and livestock amounted to $20.8 billion during the first half of 2009, up 2.0% from the same period a year earlier.

Crop receipts increased 2.4% to $11.7 billion, while livestock receipts rose 1.6% to $9.1 billion.

In the crop sector, the increase was due mainly to strong sales, particularly for canola and wheat. Although prices have retreated somewhat from highs set in 2008, production and market demand have both been strong.

In the livestock sector, hog receipts increased 10.2% from the first half of 2008 to $1.6 billion. Despite this increase, hog prices and receipts remained at low levels.

Cattle and calves receipts declined 3.2% to $2.9 billion in the first half of 2009, despite improved market prices. Receipts declined as fewer animals were slaughtered domestically and fewer animals were exported to the United States.

Canada's livestock sector has been affected by several factors. These include high feed costs; inventory reductions; the US Country of Origin Labeling legislation; the H1N1 flu virus; and the economic crisis, which put downward pressure on US demand for live animals.

Cash receipts for farmers in the supply-managed sector increased 2.3%, due mainly to higher dairy and poultry prices. This sector accounted for more than 45% of total livestock receipts.

Program payments fell 32.7% to $1.5 billion in the first half of 2009.