Farm Profitability Report Measuring Farm Profitability and Financial Performance 1.0 Executive Summary In recent years, the Canadian Agri-Food Policy Institute (CAPI) has conducted research which suggests the current measure of aggregate farm income is not an adequate determinant of the profitability of the farm sector. [...] These realized values and forecast values of farm profitability and financial performance by farm type – and the size of operation within a farm type – can benefit the farm sector, individual farm operations, and suppliers of credit to the farm sector. [...] This shortcoming arises from the dichotomy that exists between the level and trends in “aggregate” farm income and the level and trends in farm income for many individual farm operations and for distinct segments of the agricultural production sector, such as for commercially oriented farms. [...] This dichotomy can be partially explained by the ongoing transformations that are occurring in agriculture: the substitution of capital for labour, the resulting decrease in farm numbers, the number of farms that are either part-time operations or are secondary income operations, and the expansion in size of the average farm. [...] The project objective was clarified to highlight the fact that the farm profitability and financial performance measures are for two audiences: the farm sector and policy makers, with a primary focus on the farm sector.
- Pages
- 74
- Published in
- Canada
