High prices and insurance payouts boosted farm revenue in Alberta last year. We will have to wait for the data on operating costs—which were likely higher last year as well—before we will have a clear picture of how last year’s drought conditions affected the bottom line of farmers.

After a solid performance in the fourth quarter, farm cash receipts* in Alberta reached a record high of $18.6 billion in 2021. This was up $3.2 billion (+21%) compared to 2020 and $3.8 billion (+25%) compared to 2019.

Drought was a challenge for many farmers last year and crop insurance payments in Alberta grew by $778 million (+97%) versus 2020 and accounted for almost a quarter of the annual provincial increase in total farm cash receipts.

Meanwhile, driven by elevated canola and wheat (excluding durum) prices, crop receipts surged by $1.4 billion (+19%) last year and posted the largest increase (in dollar terms) among the provinces. Livestock revenue also contributed to the increase on the back of higher cattle receipts.

Farm cash receipts in Canada totaled $81.9 billion in 2021, up by $9.9 billion (+14%) from 2020 with gains in every province except Prince Edward Island.

*Farm cash receipts represent the cash income received from the sale of agricultural commodities as well as direct program payments made to support or subsidize the agriculture sector.

Answer to the previous trivia question: Lionel Messi holds the record for the largest sports contract at US$673,919,105 for a four-year deal with FC Barcelona.

Today’s trivia question: Which country has the world’s largest sovereign wealth fund?