2013 looks positive for the ag sector, according to new reports from Agriculture and Agri-Food Canada.

The Farm Income forecast for 2012 and 2013 shows farm incomes for 2012 were at an all-time high of 13.1 billion dollars and are forecasted to remain at a near record level for 2013.

The Medium Term Outlook shows strong global demand especially from major emerging economies resulting in strong prices and growth for the sector.

Assuming normal weather conditions, Canadian grains and oilseeds prices are expected to moderate from 2012 peaks but remain at higher than historical levels over the medium term.

Cattle and hog sectors are expected to see modest growth, however a strong Canadian dollar and higher feed grain prices will remain challenges going forward.