Farm Credit Canada’s (FCC) latest analysis of farm assets and debt indicates that Canadian agriculture continues to show strength and resilience despite higher interest rates, trade uncertainty, and volatile commodity prices.

“Our latest temperature check shows the industry is well-positioned to thrive in the current economic and financial environment,” said FCC’s Chief Agricultural Economist JP Gervais.

The report says most Canadian farms continue to be in a good financial position and the majority of producers have used debt to make strategic investments in improving their operation’s productivity.

“The current debt-to-asset ratio in agriculture remains lower than the 10-year average, both nationally and in most provinces, and farm liquidity remains healthy, despite facing challenges in the current economic environment,” commented Gervais. “Overall liquidity is still healthy, but it has taken a small hit in 2017 thanks to lower commodity prices and increasing interest rates.”

FCC’s first article in the two-part research series shows that profitability in Canadian agriculture decreased slightly in 2017 when measured against the value of farm assets, which have continued to increase. The pace of farmland value appreciation has exceeded that of income over the past few years. The second article focuses on the impact of rising interest rates on equity of farm operations.

FCC says current production challenges across the country could result in 2018 crop receipts to be lower than in 2017, however, the forecast still shows foreign demand for Canadian commodities remains strong.


Send your news tips, story ideas and comments to [email protected]

More Ag News

Second PED Case Confirmed

Alberta Pork has reported a second confirmed case of the porcine epidemic diarrhea (PED) virus in Alberta. This disease which causes diarrhea and vomiting in pigs was confirmed for the first time in…

CFIA Publishes Amendments To Health Of Animals Regulations On Animal Transportation

On Wednesday, the Canadian Food Inspection Agency (CFIA) published amendments to the Health of Animals Regulations on animal transportation. The overall objective is that animals arrive at their…

Canadian Animal Transportation Regulations Updated

On Wednesday, the Canadian Food Inspection Agency (CFIA) published amendments to the Health of Animals Regulations on animal transportation. The overall objective is that animals arrive at their…

Considerations When Shopping For Your Next Bull

Beef producers are looking for their new herd sires this time of year. Beef Cattle Research Council (BCRC) Research and Innovation Coordinator, Stacey Domolewski, says there's no one type of bull…

Canadian Government Invests In Animal Welfare

On Tuesday, Agriculture and Agri-Food Minister Lawrence MacAulay announced an investment of up to $4.56 million to the Canadian Animal Health Coalition. The investment was made on behalf of the…

Corteva Agriscience Acquires Clearfield Canola In Canada And U.S.

Corteva Agriscience, Agriculture Division of DowDuPont, announced that it has acquired the Clearfield Canola Production System in Canada and the United States from BASF. Clearfield canola is a…

Cattle Nutrition Top Of Mind For Producers This Time Of Year

Local farmers gathered at Cattlemen's Corner in Nanton on Tuesday, February 19 for a Cattle Nutrition Talk. Ridley Block Operations Director of Research and Nutrition Services, Mark Robbins, spoke at…

Fourth Generation Rancher Runs For NDP In Livingstone-Macleod

The NDP has their candidate for the Livingstone-Macleod Riding, and it's not the usual candidate they normally run here. M.D. of Ranchland Reeve Cam Gardner has tossed his hat into the ring for the…

Reframing The Conversation Around Antibiotics

Farmers need to reframe the conversation on the use of antibiotics in animal agriculture. That from Dr. Leah Dorman with Phibro Animal Health. "I think it's important because there is a lot of…

UCP Plans To Repeal Bill 6 If Elected

Over the weekend, United Conservative Party Leader Jason Kenney said if elected they'll repeal Bill 6. The farm safety legislation enacted in 2016 under the NDP government would end with the UCP's… is Cochrane's only source for community news and information such as weather and classifieds.

Search the Biz Guide