Equity in Canada's farm sector saw smallest increase since 2009
It was the smallest percentage increase since 2009. Equity increased in every province, except Newfoundland and Labrador (-5.7%) and New Brunswick (-0.2%).
The value of total farm assets rose 6.2% to $561.1 billion in 2015, mainly as a result of continued gains in the value of farmland (+9.3%), which represents 67% of total farm assets.
Moderating the increase in farm assets in 2015 was a $2.0 billion decrease in the value of livestock and poultry inventories (-7.5%). Livestock prices were lower at the end of 2015, more than offsetting the increase in the quantity of livestock inventories.
The value of crop inventories declined $351.7 million (-2.1%). Lower on-farm stocks of wheat excluding durum (-26.6%), lentils (-47.3%) and canola (-7.9%) were mainly responsible for the decline.
The value of total farm liabilities increased $7.1 billion (+8.9%) to $86.8 billion. The debt-to-asset ratio, which measures the dependence of farm business on debt, was 15.5% in 2015, up slightly from 2014, but below the five-year average of 15.9%. ■