Is there an ideal exchange rate for Canada’s agriculture industry?
That depends, of course, on what you’re selling or what you’re buying, and it’s rare to win on both sides of that equation. What’s more, farmers have no control over currency changes, so how can farmers best prepare for managing currency risk? That’s the topic up for discussion in this seventh episode of the Mind Your Farm Business podcast.
To offer insight in managing currency risk, RealAgriculture’s Kelvin Heppner is joined by Keith Ferley, commodity futures advisor with RBC Dominion Securities. From a discussion on world realities and currency risk shifts, to how exchange rates temper transactions, Ferley sheds light on a rather complex topic.
Want more? Hear the entire Mind Your Farm Business series!
Once you understand the fundamentals of how currency risk can impact your farm, how do you manage for it? In the audio above, Ferley outlines three key strategies for hedging potential losses due to currency shifts, and discusses how often you may want to considering locking in rates, depending on what you’re selling and how often.
Disclaimer: Royal Bank of Canada and its subsidiaries are not responsible for the information provided in this podcast, and this information does not necessarily reflect the views of Royal Bank of Canada or any of its subsidiaries. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its subsidiaries.
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