Alberta ranchers and farmers set record realized net income in 2022
Global News
As this year's crops start to spout, a recent report from ATB is highlighting an all-time-high performance for Alberta’s Ag and food industry from 2022.
After nearly 40 years in the field, Dave Bishop is well acquainted with the economic ups and downs of farming.
“Everything is very variable and that’s why our margins are so thin — because we never know usually what our input costs are going to be and then what we’re going to get for our crop,” said Bishop.
As his new crop sprouts, a recent report from ATB is highlighting an all-time-high performance for Alberta’s Ag and food industry.
According to Rob Roach, ATB deputy chief economist, realized net income increased 2.6 per cent in 2022 to reach an all-time high of $3.3 billion – despite expenses rising nearly 25 per cent, to $16.6 billion, and depreciation charges up 9.5 per cent to $2.4 billion.
“We had record income, record expenses, fertilizer, fuel, things that farmers need were also higher, but you put the two together and luckily it did have that record level of net income,” said Roach.
“That’s a huge thing to try and offset, but the volume of the yields that were coming out of the fields – more crops were able to be grown. We had a pretty good summer weather-wise last year and that combined with record high comodity prices (which) meant revenues were even bigger than the expense side,” said Trevor Lewington, CEO of economic development Lethbridge, who said these figures prove there are growing opportunities in the region.
“If you’re in the business of food no matter where you participate, you should be here, you should be southern Alberta,” said Lewington.
It was a different story nationally as the realized net income dropped by 9.5 per cent in 2022.