In the short term the financial picture for agriculture looks very good. Both farmers and livestock producers are very excited about the possibilities in 2011. With profit comes bullish behaviours of expansion and growth. In different areas of Western Canada there has been some reports of very steamy land rental rates based on the prices of canola and special crops. With interest rates still relatively low the ability to finance seems greatly possible for many producers. The challenge for many producers is to not overshoot their means and overextend themselves if the financial picture looks different a year from now.
At CropWeek 2011 I spoke to Denton McGregor from Farm Credit Canada about the current bullishness of land prices and land rent. I asked Denton whether FCC’s clients are paying off debt or trying to expand. We also talked about how the bank currently views interest rates.
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