Drought and mad cow diseases dragged farmers’ incomes last year to their lowest levels since 1978, Statistics Canada said today.

Net cash income, the difference between what farmers take in and what they pay out to operate, fell 39.1% to $4.4 billion in 2003, StatsCan said.

“Back-to-back droughts in 2001 and 2002 and the diagnosis of a single cow with (mad cow disease) in northern Alberta last year were among the main factors for the steep drop in net cash income,” the agency said.

Prairie farmers were hardest hit. Net cash income plunged 65.2% in Alberta, 61.5% in Saskatchewan and 45% in Manitoba.

Only Nova Scotia, Quebec and British Columbia farmers reported increases.

Farmers did regain some ground in the first nine months of 2004, however.

The agency said cumulative farm cash receipts for the first three quarters of this year rose for the first time in three years, mainly because of higher crop revenues.

Despite decreases in cattle and calf receipts, total livestock revenues improved this year, with higher returns for hogs and dairy products.

Farmers received $26.1 billion from livestock and crop receipts and program payments between January and September, up 6.4% from 2003.