Farmers saw record-high debt, expenses, taxes in 2018

OTTAWA — Ontario farmers are more in debt than ever with a total outstanding farm debt of $27.7 billion in 2018, up from $25.7 billion in 2017, according to recently released data from Statistics Canada.

StatCan says that farmers owed $12.4 billion to chartered banks, $9.1 billion to federal government agencies, $3 billion to private individuals and supply companies, and $2.8 billion to credit unions. The rest was owed to provincial government agencies, advance payment programs and insurance companies and other lenders.

In late November, StatCan released updates on a number of agricultural-related statistics.

• The total value of farm capital in Ontario was at a record $151.8 billion in 2018, up from a record $135.7 billion in 2017. About $138.5 billion of that was from land and buildings, while $10 billion was from machinery and equipment and $3.2 billion in livestock and poultry.
• StatCan says that Ontario farmers’ total expenses (including wages of employees and family members) were at a record high of $13.6 billion in 2018, up from $12.7 billion in 2017.
• When it comes to value per acre of farmland and buildings, Ontario farmers had a record average of $11,358 in 2018, up from $9,997 in 2017. It was the first year that the average value cracked $10,000. Ontario farmers easily held the highest value per acre among provinces. Quebec averaged $6,087 per acre and British Columbia at $5,674. The lowest was Saskatchewan at $1,454 per acre.
• StatCan says that Ontario farmers’ total value of production was $15.7 billion in 2018 (up slightly from $15.5 billion in 2017), led mostly by $14.6 billion in sales of agricultural products.
• Expenses on inputs were at $10 billion, up from $9.5 billion in 2017.
• Business taxes also hit a record high at $186 million, up from the former record of $169 million in 2017.