Livestock vs. Crops: Canadian Farmer Sentiment Index shows financial divide between the sectors

Primarily livestock producers report better current farm financial performance than primarily crop producers. Nearly half of livestock producers say finances improved compared with 12 months earlier, while only a small share of crop producers report improvement. Crop producers more often report worse finances than a year ago. Index scores reflect this gap, with livestock scoring much higher for current financial performance and a smaller but still notable advantage for future financial performance. When rating overall financial situation without comparison, both groups show generally positive views, with livestock higher and crop including some poor ratings. Outlook for the next 12 months and five years remains more favorable for livestock, and livestock producers are more willing to invest now.

"When it comes to current farm financial performance - comparing today's financial situation to 12 months ago - 47 per cent of primarily livestock producers say their financial performance has improved, while only 11 per cent of primarily crop producers say the same. To further highlight the difference, 50 per cent of crop producers say their finances are worse than a year ago, compared to just 16 per cent of livestock producers."

"Using the index calculation, primarily crop producers scored 61 on current financial performance, while livestock producers scored 131. The index scale ranges from 0 to 200, with 100 considered neutral. The gap narrows somewhat when looking at future farm financial performance, where primarily livestock scored 109 and primarily crops scored 64."

"When RealAgristudies asked its Insights Panel about their overall financial situation today - without comparing it to previous periods - the two groups viewed themselves more similarly. Combining the "excellent" and "good" responses, 60 per cent of primarily crop producers and 72 per cent of primarily livestock producers rated their overall financial situation positively. Note that eight per cent of crop producers rated their situation as poor, while no livestock producers selected that response."

"Looking ahead to the next 12-month and five-year periods, there remains a sizeable gap between the outlook of the two sectors. In both cases, the index value for primarily livestock producers is twice that of primarily crop producers. Livestock producers are also more willing to invest in their operations at this time. Forty-seven per cent say now is a good time to make"

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