1. Presentation to the 2011 ABARE Outlook Conference Andrew Goldstein March 1, 2011 Farm Profitability – The Canadian Experience –

2. 11-011-dp 2 Structure of Canadian Primary Agriculture

3. 11-011-dp 3 Farm size matters… to a point Cattle Poultry Dairy Grains Hogs

4. 11-011-dp 4 Farm size matters… to a point Cattle Poultry Dairy Grains Hogs

5. 11-011-dp 5 Significant profitability gap between top and bottom performers Note: Sample of Grain and Oilseed farms in with over 1000 acres and over $100K in revenue.

6. 11-011-dp 6 Top performers have higher revenues per acre Note: Sample of Grain and Oilseed farms in Saskatchewan’s Brown soil zone with over 1000 acres and over $100K in revenue. Farms ranked by average PM from 2003 – 2008.

7. 11-011-dp 7 Controlling costs is a key success factor Note: Sample of Grain and Oilseed farms in Saskatchewan’s Black soil zone with over 1000 acres and over $100K in revenue. Farms ranked by average PM from 2003 – 2008.

8. 11-011-dp 8 Off-farm income is playing an increasing role Negative Net Farming Income (NNFI) Low Family Income (LFI)

9. 11-011-dp 9 Farm net worth has increased significantly

10. 11-011-dp 10 Primary Agriculture: Part of a Broader System The Canadian Agriculture and Agri-Food System (2008) Input Suppliers $24 B Consumer Spending on Food and Beverages $147 B Primary Agriculture $42 B Food Processing $88 B Food Retail/Wholesale $96 B Foodservice $51 B Agriculture and Agri-Food Sector Imports $7.9 B Exports $21.2 B Imports $18.5 B Exports $17.1 B

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