Canadian annual farm income for 2012 is likely to break records as drought in the United States has brought about an increase in the demand for Canadian agricultural products.
A hike of 14 percent net cash income is expected according to a forecast released by Agriculture and Agri-Food Canada.
"The forecast for 2012 reflects that farm incomes are once again at an all-time high," Agriculture Minister Gerry Ritz said in a press release Wednesday.
The farm forecast noted that the average annual income for farmers in the country for 2012 will be $74,190, 17 percent more than last year's income and a 50 percent hike from the 2007-2011 average net income.
"The outlook shows that global demand for agricultural commodities will be driven by growth in developing economies, which is why our government continues to place such a strong emphasis on opening new and maintaining existing markets," said Ritz.
Canadian farmers are in boom while the United States is struggling against the deadly drought.
"It certainly has been an exciting year. There have been excellent prices available to us," the Calgary Herald quoted Matt Sawyer, a Canadian farmer, as saying.
"In the fall, the prices of wheat were basically the highest we've ever been able to get right off the combine, and that was largely due to the drought in the U.S.," said Matt Sawyer.
The forecast predicted that the Canadian farm income will stay strong for 2013 as well.
"Agricultural commodities are in demand - it's a growing population and there's an emerging middle class around the world who are looking at eating more protein and that sort of thing," said the Canadian farmer.
The deadly drought in the United States continuing to spread woes across the western and central part of the country, and the devastating drought is said to remain throughout the spring and summer according to Climate researchers.
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