P.E.I. farms hit all-time high with cash receipts, net income down nearly 40%

With a pandemic and drought under its boots, the P.E.I.Federation of Agriculture says it's not surprised at all by the province's farm income stats for 2020.

While cash receipts are at an all-time high, recent data from Statistics Canada suggests the total net farm income took a nosedive.

"It was a challenging year for sure," said RonMaynard, the federation's president.

"In fact, we probably came out of it better than we had anticipated a year ago."

Cash receipts up

According to Statistics Canada, cash receipts have been steadily increasing over the past five years and jumped 9.3 per cent compared to 2019.

"Prices were stronger in the potato market, there was a lower level of inventory across the country and across North America," said Maynard.

"Food prices have gone up like some other things in this COVID pandemic."

That figure does not only account forpotatoes. It also takes into consideration livestock revenue, which dropped, and cannabis.

As for how much cannabis is contributing to the rise in the province's numbers, Statistics Canada's website says it does not provide that information for P.E.I. due to confidentiality reasons. However, across the country, it accounted for one-quarter of the total increase in crop receipts.

Total net income down

Despite the welcomed increase in revenue, the data shows the total net farm incomes down around $30 million in the province. That being said, it's still the second-highest it's been in the past five years.

Total net income skyrocketed from $27,978,000 in 2018 to $81,967,000 in 2019. In 2020, it landed at $51,769,000.

"Although sales were strong expenses were up and of course at the end of the year, our inventory was down substantially," said Maynard.

Maynard said there are a couple of reasons for the drop. One stems from thise rising costs, the other has to do with Mother Nature.

"With the COVID and the changes that we had to make to a lot of operations to be COVID compliant and the other thing of course was the drought last summer," he said.

"It knocked everybody for a loop."

In 2020, P.E.I. planted the most acres of potatoes in the country but the drought caused poor growing conditions and resulted in a lighter yield.

I have a dairy farm and our feed costs are considerably higher than last year. Ron Maynard, P.E.I. Federation of Agriculture

"It means you're going into this year with less inventory," said Maynard.

"So it may reflect on your bottom line again."

As for expenses, Statistics Canada shows those have been continuously escalating and increased 9.1 per cent in 2020.

"I have a dairy farm and our feed costs are considerably higher than last year," he said.

"We're still feeling the effects of Dorian the year before and the poor corn crop and so we've had to buy more off-farm feed."

Promising 2021

Looking ahead, Maynard said he is optimistic for the future.

"Spring is always the time of hope and anticipation and right now it looks good," he said.

"We were fortunate to come through COVID the way we have so we're hopeful this year will be a better year."

In the meantime, he is asking Islanders to keep supporting farmers.

"Continue to support the farmers, continue to support buying local and continue to support the farmers in everything that we need," he said.

"Bear with us because we're out there trying to produce some food for Islanders and for Canadians and people around the world."

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