Canadian farm cash receipts slipped modestly in the first quarter of 2026 as weaker crop returns and sharply lower government program payments offset continued strength in the livestock sector.
A Statistics Canada farm income report Wednesday showed total farm cash receipts from January through March at $25.1 billion, down $406.9 million or 1.6% from the same period in 2025.
The decline was driven mainly by lower crop receipts and reduced direct payments to producers, although stronger cattle and livestock markets helped cushion the drop. Farm cash receipts include crop and livestock sales along with government program payments.
Crop receipts fell 3.2% in the first quarter to $12.5 billion as large global grain and oilseed supplies continued to pressure prices and reduce export demand for many commodities.
Receipts for cereals and grains posted some of the largest declines. Wheat receipts, excluding durum, fell nearly $300 million as both prices and marketings weakened compared to a year earlier. Durum receipts declined another $112.4 million, while corn receipts were down $82.4 million due largely to lower production and reduced marketings in Eastern Canada.
Oilseed markets were mixed. Soybean receipts dropped $86.1 million as marketings fell nearly 19%, although stronger prices helped limit the decline. Canola receipts, however, climbed $476.4 million on higher marketings despite ongoing uncertainty in export markets.
Specialty crops also faced pressure. Strong lentil production in 2025 weighed heavily on prices during the opening months of 2026, with lentil prices down more than 40% from a year earlier. Increased marketings partially offset the decline, but overall lentil receipts still fell by $53.6 million.
Livestock receipts once again provided the brightest spot in the farm economy. Total livestock receipts rose 5.5% to $11.6 billion as strong cattle prices continued to drive gains across the sector.
Receipts for cattle and calves accounted for nearly two-thirds of the increase in livestock returns. Statistics Canada said cattle prices rose 17.8%, while calf prices surged more than 35% amid persistently tight North American supplies. Lower herd numbers and reduced marketings continued to support historically high cattle prices despite lower export volumes.
Supply-managed sectors also posted gains during the quarter.
Meanwhile, direct program payments to producers fell sharply in the quarter, dropping 36.5% to $1 billion. Lower crop insurance payments accounted for more than 80% of the decline after improved growing conditions reduced indemnity payouts compared to previous years.
Provincially, Alberta recorded the largest decline in overall farm cash receipts, down $537.6 million or 7.6% from a year earlier to $6.57 billion, while Saskatchewan posted the largest increase, rising $117.2 million or 1.9% to $6.39 billion during the quarter.
Manitoba farm cash receipts down 5.1% at $2.57 billion, while Ontario receipts inched 0.6% higher to $4.8 billion.
