It seems like a foregone conclusion, but the Bank of Canada is expected to raise interest rates Wednesday. The market is expecting a 25 basis point hike to 1.75%, which would be the fifth increase since July, 2017. Bank of Canada Governor Stephen Poloz will address the Canadian economy that’s been tempered in the past… Read More
Category: Finance
Capital assets don’t buy groceries. If this statement makes you scratch your head a little, you’re likely the older generation on the farm. If you read it and think, “Don’t I know it” you might be the in-coming generation, and very likely frustrated by the lack of clarity on how the farm’s equity and income… Read More
Citing a strong industry, but a shrinking demographic, BMO Bank of Montreal has introduced its new loan program for Canadian farmers 35 years or younger. The BMO Young Farmer program offers is aimed at helping both the person who’s already in the industry and for those who are choosing to get into agriculture, with loans of up… Read More
Although not a common practice for most farmers, a lawyer is urging more farmers to consider consulting their legal advisor prior to purchasing pricey farm equipment. This advice comes after one Saskatchewan farm lost their legal battle and appeal against an ag dealership. In this specific case, James and Merrylyne Coward claimed the dealership they bought… Read More
Believe it or not, the farm transition can actually be a joyful journey. But that can only happen once three things are established: Is the business going to continue? When would you like it to continue? (starting now, or with a reading of the will) Who will lead the business in the next phase? That’s… Read More
On Friday, the Canadian dollar rose nearly a cent relative to the U.S. dollar. The sudden ‘strength’ came from a couple of sources. First, more confidence that the Bank of Canada will continue the path gradual rate hikes; second, a weaker U.S. Dollar. Recent Canadian economic data warrants the Bank’s outlook for gradual rate increases…. Read More
The Bank of Canada increased the target interest rate today by 0.25%, to 1.5%. This is now the fourth rate hike, amounting to 1%, since the Bank hiked rates for the first time since 2007 a year ago. Over the last year, the Bank of Canada has matched the aggressiveness of the U.S. Federal Reserve,… Read More
Area One Farms, an investment firm that builds equity partnerships with Canadian farmers, has announced the launch of Area One Farms Fund IV and Fund V. The two funds will offer investors the “opportunity to invest in equity partnerships with Canadian farmers and farmland.” According to a press release, Fund IV will offer Canadian institutional… Read More
“Fair” must be one of the most commonly used words in the English language. It most certainly is one of the most dangerous. It gets used and thrown around with reckless abandon every day. Don’t believe me? Here’s are some examples: Farm succession: “Let’s make sure we split up the farm so it’s fair for… Read More
When you cross the Canada/U.S. border headed south, the landscape is the same, the time zone is the same, but the economics of dairy are very different. Canadians in agriculture are familiar with our domestic supply management system that aims to match supply of dairy products to demand. This control of supply through a quota… Read More