Ag Economist Topics
Leigh Anderson, provides an update of the impact of the Canadian dollar on agriculture commodities and farm input prices.
FCC Chief Agricultural Economist JP Gervais offers insight into what producers should consider when negotiating rental rates as crop margins decline.
The concerns around debt aren't new in Canada. Discussions of Canadian consumer debt - totaling more than $1.8-trillion as of April 1 - have sounded alarm bells. Canadian farm debt climbed at a time when the overall farm economy boomed. Net cash income at the farm level increased from $6.9 billion in 2004 to $12.7 billion in 2013.
As a renter, knowing your cost of production and expected revenue is critical in determining your ability to pay for land rental. Landlords, however, may consider different factors.
There are very few inputs producers have the ability to negotiate and as a result, there is increased attention towards the potential for cash rental rates to decline.
Meat prices have been one of the contributors to higher overall inflation in Canada. Consumer beef prices have increased almost 13 per cent and pork prices almost 17 per cent in one year.
U.S. crop production and acreage are not likely to fall, even in an environment in which crop prices are declining.
The combination of a lower Canadian dollar and an improving world economy should strengthen the position of Canada’s food and beverage manufacturing sector.