The Canadian Agri-Food Policy Institute


	VIABILITY
	The future of Canadian agriculture depends on a productive, viable and profitable sector. CAPI has laid a foundation to address these issues in part through its studies on farm incomes and regulatory reform. CAPI has also explored this issue from the viability of rural economies in general.
	[ Members of the CAPI Panel of Viability ]

Measuring Farm Profitability and Financial Performance

April 3-24, 2008

In April 2008, the Canadian Agri-Food Policy Institute (CAPI) undertook consultations with over 120 participants at five workshops across Canada on farm income. At the workshops, CAPI worked with participants to determine the various performance measures which, if reported regularly, would help farmers to focus on areas of their operations that need improvement in order to enhance profitability.

A better understanding of farm profitability is a basis for good policy development. Equipped with more precise farm income information, policy-makers, financial advisors, lenders and producers will have a more accurate view on the financial performance of farmers. CAPI's report — Measuring Farm Profitability and Financial Performance — recommends that a finer level of disaggregated data be produced, including the reporting of farm income by farm size, type and by province.

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