Canadian farmers recorded another difficult year for profitability in 2025, as rising expenses and relatively flat crop returns offset a strong performance from livestock.
New figures released by Statistics Canada Wednesday showed realized net farm income slipped 0.3% to $8.3 billion in 2025. The modest decline follows on the heels of a much steeper 33.9% decline in 2024. Excluding cannabis, however, 2025 realized net farm income rose 9% to $9.6 billion.
Realized net income measures the difference between farm cash receipts and operating expenses, adjusted for depreciation and income in kind.
While profitability remained under pressure, Canadian farm cash receipts topped $100 billion for the first time since Statistics Canada began collecting the data in 1926. Total receipts climbed $4.5 billion or 4.7% on the year to a record $102.2 billion in 2025, led by strong gains in Ontario and Alberta.
Livestock markets were the main driver behind the increase. Total livestock receipts jumped 13.3% to $45.3 billion, marking the fifth straight annual increase and the largest gain since 2021.
Cattle and calf receipts surged 22.5% to $20.6 billion as tight North American cattle supplies continued to push prices sharply higher. Statistics Canada said shrinking herd sizes in both Canada and the U.S., combined with drought-related herd reductions in recent years, helped support historically strong cattle prices despite lower marketings and weaker exports.
Hog receipts also posted their strongest growth in four years, rising nearly 14% to $7.2 billion on improved demand and higher prices. Supply-managed sectors, including dairy and eggs, continued to post modest gains.
Crop receipts, however, remained under pressure. Total crop receipts edged up only 0.6% to $52.1 billion despite strong yields and higher marketings for many crops. Statistics Canada said ongoing geopolitical tensions and large global grain and oilseed supplies continued to weigh on prices.
Canola receipts fell 6.4% to $12.09 billion in 2025 as reduced exports and trade restrictions lowered marketings, even while domestic crushing activity reached record levels. Wheat (excl durum) receipts inched up 1.3% to $8.53 billion, while durum returns increased 10.5% to $1.93 billion.
At $3.88 billion, national soybean receipts increased 15.5% in 2025 compared to a year earlier, while corn returns increased just slightly to $3.05 billion.
Saskatchewan and Alberta posted the largest provincial declines in crop receipts.
Meanwhile, farm operating expenses rose 5.1% to $83 billion, increasing in every province. Livestock and poultry purchases surged nearly 40%, the largest increase since 1981, as producers paid record prices for cattle and calves. Fertilizer expenses also rose almost 7% amid global trade uncertainty and export restrictions from major producing countries.
Saskatchewan recorded the largest provincial decline in realized net farm income in 2025, falling by $1 billion due to weaker crop receipts and higher expenses. Quebec posted the largest gain, helped by stronger livestock returns and relatively stable costs.
Realized net income changes were mixed across the provinces in 2025. Saskatchewan reported the largest decline, down $1 billion to $2.93 billion, due to lower crop receipts (-4.8%) and higher total farm operating expenses (+3.5%). Conversely, Quebec (+$474.4 million from a negative result in 2024 to $318.9 million) reported the largest gain, mainly because of higher livestock receipts (+6.6%) and stable expenses (+0.4%).
Manitoba realized net farm income was up almost 26% in 2025 to $1.48 billion, while Alberta was down 14.3% at $2.07 billion. Ontario realized net farm income surged 42.7% to $2 billion.
