Average operating margins for Canadian farms rise in 2004, StatsCan says

OTTAWA (CP) - Statistics Canada says higher hog and crop revenues offset sharply lower cattle revenues and pushed up the average operating margins for Canadian farms in 2004. The agency says taxation records show average operating revenues per farm increased 1.2 per cent in 2004 to $210,184.

That's a 10.8 per cent increase in current dollars from the five-year average between 1999 and 2003.

At the same time, average operating expenses dropped 0.4 per cent to $181,400 in 2004 from 2003.

As a result, operating margins increased 1.4 cents to 13.7 cents per dollar of revenue, slightly under the previous five-year average.

In 2004, average hog revenues climbed 17.3 per cent, largely due to growth in revenue from domestic slaughter; average hog revenues have almost doubled in the last five years.

At the same time, average cattle revenues fell 20.1 per cent in 2004, mainly due to the continuing ban on beef trade to the United States which remained in force during all 12 months of the year.

As a result, livestock revenues declined 3.1 per cent from 2003 to 2004.

Average total crop revenues rose 3.4 per cent.

© The Canadian Press, 2006