Continued strength and growth expected for Canada's agricultural sector

OTTAWA, March 27, 2018 /CNW/ - Canada is a leading producer of high-quality, safe agricultural and food products. Agriculture is a major contributor to Canada's economy, and the sector is expected to prosper throughout 2018. A growing world population, the rise in disposable income in developing nations, and increasing trade in farm products present opportunities to further grow the Canadian agriculture sector, creating more jobs for the middle class.

Canadian exports of agriculture, agri-food, fish and seafood to all countries in 2017 rose to $64.6 billion, a $2 billion increase from 2016 exports. Canada is the world's fifth highest total exporter (by value) of agricultural and food commodities. Maintaining and enhancing the strength of our exports is vital to achieving the Government of Canada's trade target of growing agriculture and food exports to $75 billion by 2025.

Today, Agriculture and Agri-Food Canada released the 2018 Canadian Agricultural Outlook with analysis on the economic state of the agriculture and food sector. The Outlook report provides a forecast of farm income for 2017 and 2018, and looks ahead to longer-term trends that could impact the agriculture sector.

According to the report, Canada's producers are forecast to see record farm income levels in 2017 and near-record levels in 2018. Crop and livestock receipts are both set to increase in 2017 and 2018. Net cash income is forecast to reach a record level in 2017 and remain high in 2018. At the same time, continued growth in asset values is expected to raise average farm net worth to $3.16 million by 2018.

Budget 2018 takes the next steps towards building a gender equal, competitive, sustainable and fair Canada – where science and innovation spur economic growth.

Budget 2018 contains many initiatives that will build on the ambitious growth agenda for agriculture set out in Budget 2017, which included many significant ongoing investments to help our farm families and agri-food processors excel, including the $3 billion federal-provincial-territorial agricultural policy framework, the Canadian Agricultural Partnership, $950 million Innovation Supercluster Initiative including the Protein Industries Supercluster, $1.26 billion Strategic Innovation Fund, $70 million for agricultural science, and $2 billion in rural infrastructure.

Together, these investments will build on the Government of Canada's strong agenda for agriculture and help ensure Canada's agriculture and agri-food sector remains a leader in job creation and innovation, and a continued engine of economic growth.

Quotes

"Strong international demand for Canada's safe, high-quality agricultural products has helped make the sector a key driver of the economy. The Government of Canada is working hard to ensure farmers and the agriculture and food system as a whole, are prepared to meet global needs, helping to strengthen the middle class and keep Canada on the path to prosperity."
- Lawrence MacAulay, Minister of Agriculture and Agri-Food

Quick facts

2018 Canadian Agricultural Outlook Highlights:

• Crop receipts are expected to grow by one per cent in 2017 to $34.5 billion and increase by a further two per cent in 2018 to $35 billion, which would be a record level for total crops.
• Livestock receipts are forecast to increase by four per cent to $24.8 billion in 2017, and then increase once again to $24.9 billion in 2018.

Associated links

• 2018 Canadian Agricultural Outlook

Related content

• 2017  Medium Term Outlook
• 2017 Overview of the Canadian Agriculture and Agri-Food System
• Economic Publications

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Media Information
Images for the 2018 Canadian Agricultural Outlook are available for media use

SOURCE Agriculture and Agri-Food Canada