Summary: The largest year-over-year increase in farm cash receipts in 40 years helped to offset a similarly historic rise in operating expenses as Canadian realized net farm income jumped more than 40% in 2021. A Statistics Canada farm income report on Wednesday pegged national realized net farm income at $13.5 billion, up 46.4% from a year earlier. (Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind). The increase for 2021 follows on the heels of a nearly 80% rise in realized net farm income in 2020 and a much more modest 5.1% hike in 2019. On the other side of the ledger, fertilizer expenses for Canadian farmers increased by 31.8% to $7.5 billion in 2021. Commercial feed expenses for livestock producers were up by 23% to $9.6 billion as the drought in Western Canada caused pastures to suffer and limited the amount of hay and grain feed that could be stored on farms or purchased from others. Machinery fuel expenses increased by 29.1% to $2.9 billion in 2021, as governments around the world reopened their economies after taking measures to curb the spread of COVID-19 in 2020, StatsCan said. Source - https://www.syngenta.ca/market-news/realized-net-farm-income-up-sharply-in-2021

1. Agriculture
Equipment Sector –
Analysis and
Commentary
PAUL YOUNG CPA CGA
MAY 26, 2022

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
 North American AG Equipment Sales
 Commodity Prices
 AG Prices – Canada
 Preliminary Crop Estimates – Canada
 Oilseeds
 Energy Prices
 Carbon Tax
 Food Prices
 Hospitality Sector
 Farming Income
 Top Farming States
 Food Processors
 Technology and Farming
 Government and Farming
 Debt
 Summary

4. North American Equipment Sales
Source - https://www.aem.org/Market-Data/
US-Month-Ag-Report
-4-2022 - Copy.pdf
CAN-Month-Ag-Repo
rt-4-2022 - Copy.pdf

5. Commodity
Prices
SOURCE -
HTTPS://WWW.WORLDBANK.O
RG/EN/RESEARCH/COMMODIT
Y-MARKETS
CMO-Pink-Sheet-May
-2022.pdf
CMO-Pink-Sheet-May
-2022.pdf

6. Commodity
Prices
Source – Scotiabank
commoditynote_2022
-04-25.pdf

7. Carbon Tax – Canada
 Carbon Tax / Farmers – Wheat Farmers - https://wheatgrowers.ca/
 Greenhouse growers / Carbon Tax Exemptions - https://www.greenhousecanada.com/bc-greenhouse-
growers-get-permanent-carbon-tax-relief-20363/
 Grain Dryer - https://www.world-grain.com/articles/13262-canadas-grain-dryer-program-tackles-
efficiency
 Carbon Tax hike? - https://www.sherwoodparknews.com/opinion/editorials/editorial-liberals-mum-on-
hiking-carbon-taxes/wcm/a55ed40c-d289-4023-802b-4d2a1335cdc5

8. Hospitality Sector
Blog – Food Services and Hospitality Sector – Canada and the World – August 2021
The food and beverage sector continue to face many challenges.
https://www.slideshare.net/paulyoungcga/hospitality-and-food-service-sector-canada-august-2021

9. Blog – Food Prices
Blog - With Demand Soaring, Booming Food Sector Turns to Food Contract Manufacturing
As demand for food products increases nationwide, businesses are frequently turning to food contract
manufacturing companies to meet that increased need rather than adding additional capacity internally.
Anticipating that demand will eventually return to normal levels, food producers can work with an experienced
co-packer to enhance their operational efficiency without needing to make substantial asset or equipment
investments in-house that may sit unused later on.
Sourcing for food contract manufacturing on the Thomasnet.com platform is up 133% year over year and up
277% over last quarter averages.
Source - https://www.thomasnet.com/insights/with-demand-soaring-booming-food-sector-turns-to-food-contract-
manufacturing/?ecms_id=03a9e6f7-1a59-4bb8-88af-
2bd41a26780d&ecms_short=ART5898&doc_type=ted_video_article&parent_id=8250e2ab-aea8-49ec-ad90-
fe73f30b2122&utm_content=featuredvideo&linktype=title&channel=email&campaign_type=thomas_industry_update&ca
mpaign_name=tiu211004&utm_campaign=tiu211004&utm_medium=email&utm_source=thomas_industry_update&tinid
=221763045
My work - https://www.slideshare.net/paulyoungcga/food-and-beverage-analysis-and-commentary

10. Farm Income
 Farming Income in Canada has been struggling for the past few years -
https://www150.statcan.gc.ca/n1/daily-quotidien/191126/dq191126b-eng.htm
 USA farm income and aid - https://www.agriculture.com/markets/newswire/us-farm-income-expected-to-
rise-in-2019-but-only-because-of-government-aid
 AG subsidies - https://www.agriculture.com/news/business/world-farm-subsidies-hit-2-billion-a-day
 Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (8.1 percent) to $111.4
billion in 2021. In inflation-adjusted 2021 dollars, net farm income is forecast to decrease $12 billion (9.7
percent) in 2021 after increasing $37.8 billion (44.2 percent) in 2020 to its highest level since 2013. Despite
this decline, 2021 net farm income would be 21 percent above its 2000-19 average of $92.1 billion.
https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-
income-forecast/

11. Farm Income – 2021 Farm Income
2021.pdf

12. Farm Income – 2021 Farm Income
2021.pdf

13. Canada
and Farm
Receipts
SOURCE – STATS CANADA
Farm Income -
202109.pdf

14. Farm Receipts
Source – Stats Canada
Farm Receipts.pdf

15. Farm Receipts
Source – Stats Canada
Farm Receipts.pdf

16. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf

17. 2020 Farm Income Analysis
Blog - Farm Income
and Expenses - Canada.pdf

18. Top Farming States
Source - https://www.statista.com/statistics/196114/top-10-us-states-by-number-of-farms/

19. Food Processors
 Source - www.fao.org or https://www.globenewswire.com/news-release/2019/09/04/1910664/0/en/Food-Processing-Market-to-Exceed-4-Trillion-
by-2024-Key-Trends-Analysis-Opportunities-to-Succeed.html

20. Plastic Greenhouses / CO2
 35% of China’s vegetables come from plastic green houses -
https://www.nextbigfuture.com/2021/03/plastic-greenhouses-provide-35-of-chinas-vegetables.html
 Greenhouse farming - https://gulfnews.com/uae/environment/popularity-of-greenhouse-farming-
options-on-the-rise-1.842642
 South Korea - https://www.hortidaily.com/article/9306173/overview-vegetable-horticulture-in-south-
korea/
 Global Market - https://www.databridgemarketresearch.com/reports/global-plastic-greenhouse-
market
 Ontario/Greenhouses - https://windsor.ctvnews.ca/ontario-government-investing-3-6-million-toward-
innovation-projects-in-the-greenhouse-sector-1.5285128
 NZ and the Middle East - https://www.freshplaza.com/article/9307955/new-zealand-has-a-huge-tech-
opportunity-in-the-middle-east-s-growing-horticulture-industry/

21. Technology and Farming
 AI is transforming farming - https://www.forbes.com/sites/cognitiveworld/2019/07/05/how-ai-is-transforming-
agriculture/#1fa34bec4ad1
 AI and farming - https://customerthink.com/the-role-of-artificial-intelligence-in-agriculture-sector/
 IBM and farming - https://farmtario.com/news/ibm-expands-artificial-intelligence-platform-into-agriculture/
 RPA and Farming - https://blog.accubits.com/robotic-process-automation-in-agribusiness/
 IBM and Expert Farming - https://www.prnewswire.com/news-releases/farmplan-using-ibm-pairs-to-predict-blackgrass-
weed-before-it-damages-crops-301151067.html
 AG App - https://www.techrepublic.com/article/farming-assistant-app-agrolly-wins-ibms-call-for-code-contest/
 Smart farming - https://farmingfirst.org/2020/10/transforming-agriculture-through-smart-farming-from-data-ownership-
to-open-data/
 Telecom/Farming - https://ca.finance.yahoo.com/news/agriculture-analytics-market-reach-2-133100885.html
 Blockchain and Food Protection - https://blog.trustbix.com/how-blockchain-can-support-food-supply-chain-management

22. Government / Farming
 Elimination of trade barriers - https://www.slideshare.net/paulyoungcga/what-is-next-for-for-global-
trade-protectionism
 More emphasis on local supply chain management solutions -
https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
 Tax fairness and regulatory reforms - https://www.slideshare.net/paulyoungcga/does-the-world-need-
a-wealth-tax
 Government provides direct subsidies and/or loans to farmers
 Government needs to revisit all their programs to ensure various programs are efficient and effective -
https://www.slideshare.net/paulyoungcga/market-food-protein-market-analysis-and-commentary or
https://www.oag-bvg.gc.ca/internet/English/parl_lpt_e_934.html or https://thetyee.ca/Opinion/2016/03/08/BC-
Carbon-Tax-Failure/
 Automation can help with automation of audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-
performance-base-auditing

23. Farm Debt
Source -
https://www.portageonline.c
om/ag/agriculture-news-
mb/fcc-economist-says-
farm-debt-under-control-
watch-for-higher-interest-
rates

24. USA Farm Debt
Source -
https://farmpolicynews.illinoi
s.edu/2021/06/farm-lending-
remains-strong-in-2020-
american-bankers-
association-report/

25. Summary
 All levels of government need to work together to better support the agriculture and food processing
sector
 The world needs to unite to fixed issues with WTO
 Farm input costs continue to plague farmers around the world
 Water, forest, and land management continue to face world’s population growth
 More balanced between environmental and economic policies.
Blog – Farm Income and AG Equipment – Canada and the World – May 2022
Farm Receipts.pdf Farm Income
2021.pdf
Ukraine war,
supply-chain woes cause cannabis fertilizer shortage, increased costs.pdf
The Daily — Farm
income, 2021.pdf
Canadian farmer
profits surged during pandemic Statistics Canada - Resources & Agriculture Business in Vancouver.pdf
High costs impact
Ontario farmers CTV News.pdf
Stakes are high for
farmers as 2022 crop shapes up to be most expensive in history.pdf
5 Technologies to
Help Make the Food System Carbon Neutral - U of G News - Farming.pdf
How made-in-B.C.
agritech is filling in food security gaps - Technology Business in Vancouver.pdf
2023 Farm Bill Putting
Common Sense Ahead of Special Interests.pdf
Lack of ‘grow-local’
support pinching food security - Resources & Agriculture Business in Vancouver.pdf
Food prices
continued their two-year-long upward trajectory.pdf
Farm Debt Continues
Steady Rise Syngenta CA.pdf
Canada joins housing
shortage circus - MacroBusiness.pdf
Canada's housing
market headed for soft landing by 2022 RBC - BNN Bloomberg.pdf
Ontario Housing
Market May. 20th, 2022 Update Interactive Map - WOWA.ca.pdf
Realized Net Farm
Income Up Sharp... Syngenta CA.pdf
Summary:
The largest year-over-year increase in farm cash receipts in 40 years helped to offset a similarly
historic rise in operating expenses as Canadian realized net farm income jumped more than 40%
in 2021.
A Statistics Canada farm income report on Wednesday pegged national realized net farm income
at $13.5 billion, up 46.4% from a year earlier. (Realized net income is the difference between a
farmer's cash receipts and operating expenses, minus depreciation, plus income in kind). The
increase for 2021 follows on the heels of a nearly 80% rise in realized net farm income in 2020
and a much more modest 5.1% hike in 2019.
On the other side of the ledger, fertilizer expenses for Canadian farmers increased by 31.8% to
$7.5 billion in 2021. Commercial feed expenses for livestock producers were up by 23% to
$9.6 billion as the drought in Western Canada caused pastures to suffer and limited the amount
of hay and grain feed that could be stored on farms or purchased from others. Machinery fuel
expenses increased by 29.1% to $2.9 billion in 2021, as governments around the world reopened
their economies after taking measures to curb the spread of COVID-19 in 2020, StatsCan said.
Source - https://www.syngenta.ca/market-news/realized-net-farm-income-up-sharply-in-2021
1. Fertilizer costs - https://mjbizdaily.com/ukraine-war-supply-chain-woes-cause-cannabis-
fertilizer-shortage-increased-costs/
2. Farm cash receipts had the best year in over 40 years - https://www150.statcan.gc.ca/n1/daily-
quotidien/220525/dq220525a-eng.htm
3. Profits - https://biv.com/article/2022/05/canadian-farmer-profits-surged-during-pandemic-
statistics-canada