2025 GDP data suggest growing agricultural revenues
Despite a stronger monthly decline of crop and animal production in October than the main GDP, the sector has generally done better than the general economy in 2025.
Canada’s GDP contracted 0.3 percent in October and crop and animal production fell twice as much. But over the first nine months, both Agriculture and Forestry, and Crop and Animal Production expanded every single month. While the two groups generally outperformed the overall economy in 2024, the gap has been wider in 2025.
Canadian farmers reported higher production for most crops in 2025, corn and soybeans being exceptions. Statistics Canada also reported that yields were generally higher than in 2024, especially in Western Canada. Records were reached for wheat production and canola yields.
These trends bode well for farm revenues in 2025 after the latter slowed down significantly in 2024.
Total operating revenues increased 0.2% in 2024 after an 8.0% gain in 2023. While swine revenues rebounded 4.2% in 2024, crop revenues fell 6.8% in 2024.
But even if revenues increased in 2025, translating the gain into higher profitability is a challenge.
Total operating expenses increased a further 3.5% in 2024 after rising nearly 8% in 2023. Livestock purchases rose 23.1% in 2024 on the back of an 11.7% increase the previous year.
Along with ongoing increases in expenses, Canadian farmers total liabilities reached $159.0 billion in 2024, marking a substantial 14.4% increase from a year prior. This represents the largest percentage increase in total liabilities since the series began in 1981.
Over four-fifths of this rise was attributable to long-term liabilities, led by Alberta (+17.4%), Ontario (+13.7%), and Quebec (+12.4%).
A significant indicator of financial stress is the interest coverage ratio, which fell to its lowest level since 2007 – Statistics Canada.
Even when revenues are growing, adopting a proactive risk management approach can help turn your farm operations into a sustainable business.