Net farm income rebounded in 2007 after two straight annual drops, as rising prices for grain and oilseeds offset higher costs and lower prices for hog and cattle producers, Statistics Canada reported today.

It says realized net income, basically the difference between a farmer’s cash receipts and operating expenses, minus depreciation, rose to $1.7 billion in 2007 from $771 million in 2006.

The 2007 figure was 2% higher than the average of the previous five years.

However, the only real beneficiaries were farmers in Quebec and on the Prairies.

For example, potato farmers in New Brunswick and Prince Edward Island were hit by falling prices, while Prairie grain growers reaped the benefits of soaring prices.

Income for farmers producing supply-managed commodities — dairy, poultry and eggs — saw an 8.5% jump in revenues, the largest percentage increase in over 20 years.

Payments from various government programs fell 9.8% from the 2006 level, to $4.1 billion, mainly because of higher crop prices.