The April 2024 Canadian Farmer Sentiment Index results paint a nuanced picture of current farm financial performance across the country, highlighting differences in sentiment across demographics and farm types.
This latest survey reflects farmers’ financial situation compared to 12 months ago, and shows some interesting changes. For the first time since the launch of the CFSI in September 2022, Farmers report that current farm financial performance is lower than future expectations.
Current farm financial performance remains stable at 85 out of 200, indicating it remains below the neutral threshold, reflecting a broader sentiment that although the current situation is stable, farmers believe there is potential for improvement in the future.
Demographic Differences
- Livestock Farm34% of livestock farmers feel better off financially compared to last year, almost double the proportion of arable farmers (17%) and slightly higher than mixed farmers (19%).
- Agricultural income: Farmers with revenues over $1 million are more optimistic about their financial situation than smaller farmers. This optimism is consistent across the $1 million to over $5 million revenue range, with roughly 25% of respondents in these categories feeling like their financial situation is good.
Differences by age and region
Younger farmers under the age of 35 feel more positively about their financial performance compared to older farmers, and the older you are, the more likely you are to feel that your financial situation is about the same as it has been in the past 12 months.
The differences between regions are quite pronounced.
- Western Canada: 24% feel the situation has gotten better, 34% feel it has gotten worse, and 43% feel it has remained about the same.
- Eastern Canada: Only 11% feel the situation has gotten better, with a slightly higher 36% believing it has gotten worse, and 54% saying there has been no change.
Meaning and Future Outlook
These insights are significant as they highlight the diverse challenges and opportunities in Canada’s agriculture sector. While certain demographics, such as larger farms and younger farmers, have more optimistic outlooks, cautious outlooks for Eastern Canada and smaller farms highlight the need for keen insight and careful marketing in 2024.
To learn more about the Canadian Farmer Sentiment Index, click here. Real Agri Studies or email (email address protected).
