IjlI Agriculture and Agri-Food Canada The Changing Financial Structure Of Canadian Agriculture FOR MORE INFORMATION CONTACT: Policy Branch Policy Development Division Farm Income Policy and Programs Directorate ,„, Canada (613) 995-5880 338.130971 C456 1994 c. 3 ^ ^&\ ^AGRICULTURE ^CANADA CENTRAL LIBRARY i>* BIBLIOTHEQUE CENTRALE X*&&,V OETDTIARWCAE,sOiNrTJAORHINOCARLING BLDG.^M/s) CANADA K1A 0C5 *£r v Balance Sheet Average Assets, Canada & Net Worth Liabilities ( ) $700000 -. 85% $600,000 85% 82% 83% 82% 80% IBiP $500,000 llliill • "•'-: iliilil $400,000 111 $300,000 $200,000 $100,000 $0 1980 1983 1987 1989 1991 1993 LIABILITIES NET WORTH Observations: ^Assets and net worth: >* Declined between 1980 and 1987. >* Increasing steadily since 1987. >• In 1993 above 1980 peak. ^Equity in 1993 is back to 85%. ^Liabilities fairly constant up to 1991. ^In 1993, average liabilities decreased. Notes: Slide 3 Balance Sheet Canada +- AVERAGE ASSETS $589,000 (+10%) +- AVERAGE LIABILITIES $90,000 (-5%) ** AVERAGE NET WORTH $499,000 (+13%) AVERAGE EQUITY (85%) Observations: Notes: Slide 4 Balance Sheet ^•^ Asset values and net worth have improved since 1987 and are now above the peaks of the early eighties ^ Liabilities are starting to decline Equity is at 85% Observations: Notes: Slide 5 Revenue & Expenses Income Indicators, Canada (per farm) EXPENSES 1989 1991 1993 1989 1991 1993 SALES iGOVERNMENT » INTEREST -OTHER n FAMILY I PAYMENTS 81 EXPENSES" EXPENSES^ WAGES Observations: ^Sales are unchanged in 1993. ^Program payments are up in 1993. ^Interest expense is down due to lower interest rates on declining liabilities. ^Total expenses have been increasing in recent years. Notes: Slide 7 Income Per Farm, Canada $60,000 $50,000 - $40,000 $30,000 • $20,000 • $10,000 • 1989 1991 1993 NET MARKET INCOME GOVERNMENT PAYMENTS FAMILY WAGES Observations: ^Net market income is down $1500 in 1993. ^Program payments have offset the decline in net market income. ^Family wages are up slightly. These are the wages paid to all family members including farm operators, that have been deducted as an expense for tax purposes. Notes: Slide 8 Income Statement FARM SALES $99,750 0%) ( NET MARKET INCOME $12,400 (-11%) PROGRAM PAYMENTS $11,000 (+15%) NET CASH FARM INCOME $23,400 0%) ( QfrseryatiQPs; Notes: Slide 9