Average Ontario farm revenues went up in 2023 but so did expenses

Farmers Forum
Nelson Zandbergen

Farmers Forum staff

OTTAWA — The average Ontario farm recorded a profit in 2023 of more than  $106,000.

Average Ontario farm gross revenues increased almost 7 % in 2023 but higher expenses ate up those gains, according to the latest annual figures released by Statistics Canada.

In 2023, the average Ontario farm’s operating revenues were just over $649,049, up almost 7 % from $607,341 in 2022. That left an average profit per farm (before depreciation) of $106,745 or about 1 % less than in 2022. Expenses include employee wages and salaries.

Revenues include government program payments. The average Ontario farm collected $11,231 in program payments.

The average Ontario farm revenue ranked 8th among provinces in Canada but Ontario farms ranked 6th for profit.

Here are the provinces ranked by profit in 2023:

1. Manitoba profit: $211,131 (Revenue before expenses: $955,884)
2. Saskatchewan: $201,943 ($787,047)
3. Prince Edward Island: $187,671 ($907,438)
4. Alberta: $164,566 ($891,156)
5. New Brunswick: $132,252 ($733,207)
6. Ontario: $106,745 ($649,049)
7. Quebec $100,829 ($698,311) 
8. Newfoundland & Labrador: $76,998 ($751,720) 
9. Nova Scotia: $62,042 ($513,819)
10. British Columbia: $61,060  ($580,048)

Ontario’s top revenue generators by farm type:

1. Potato producers profit: $433,519  ($2.126 million revenue before expenses)
2. Greenhouse, nursery and floriculture: $326,159 ($2.961-million)
3. Dairy farmers: $310,624 ($1.234 million)
4. Poultry and egg producers $289,225 ($1.441 million)
5. Hog producers: $160,608 ($2.934 million)
6. Vegetable growers: $131,461 ($964,740)
7. Fruit and nut tree farmers: $116,255 ($688,421)
8. Oilseed and grain farmers $84,913 ($363,695) 
9. Other animal production: $32,317 ($252,222)
10. Beef farmers: $14,958 ($440,201) 

As a sector in 2023, Ontario’s 620 hog producers were notable for scoring the second-highest average per-farm revenue in the province, at $2.934 million, which contrasted with a very low profit margin. Continuing a negative trend in the sector, the average Ontario swine producer’s 2023 overall profit dropped more than 95 % from 2022, which in turn was down almost 42 % from 2021. 

While Ontario’s 2,965 dairy farmers placed fourth in average farm revenue, at $1.234 million, their average profit of $310,624 ranked third in the province — behind potato farmers and greenhouse operators. By contrast, the average dairy farm in Quebec had revenue of a little more than $977,859 and an average profit of $179,249.

Though there were about 46 % more Quebec dairy farms than Ontario dairy farms reporting income to the Canada Revenue Agency in 2023 (4,320 versus 2,965) the StatCan figures show that Quebec dairy farms only produced about 15 % more total revenue than their Ontario counterparts ($4.224 billion versus $3.66 billion) in 2023. 

The average Ontario oilseed and grain producer saw revenue and profit dip in 2023. Revenue was  $363,695 (down 0.64 % from $366,051 in 2022), while profit was $84,913 (down 6.6 % from $90,924 in 2022).

Revenue for the average Ontario beef farm rose to $440,201 in 2023, up from $364,402 in 2022. But that yielded only $14,958 in basic profit and, technically, an overall loss of $6,750 if capital depreciation is factored in. By that measure, the average Ontario beef farm hasn’t earned an overall profit since 2016: A figure of just over $2,600.

The figures also show the combination of revenue streams found on the average Ontario farm. For example, the average Ontario dairy farm brought in corn crop revenues of $48,561, soybean crop revenues of $51,251 and government program payments of $36,644.