Net farm income, by province

Figures may not add to totals because of rounding.

Increases in total gross operating expenses and depreciation charges appear as a decrease in the waterfall chart because higher expenses or depreciation charges will reduce net farm income since they are subtracted from receipts in the computation of net farm income. Conversely, a decrease in total gross operating expenses or depreciation would be expressed as an increase in the waterfall chart.

The national GDP deflator at market prices available in March is used as a price deflator for Canada and the provincial GDP deflator at market prices available in November is used as a price deflator for the provinces. Source(s): table 36-10-0130-01 and table 36-10-0223-01

The longstanding trend towards incorporation allows managerial and supervisory services of the operators to be recorded as wages instead of part of the operating surplus of unincorporated farms. Over time this will have a downward effect on the measures of net cash income and realized net income.