Over the past month I’ve been asking commodity analysts and economists to speculate on whether we would see a $0.65 or $0.75 dollar first. All but one analyst replied — generally with great resolve — that $0.65 was the correct bet. That is not looking to be the case at at this point, as the… Read More
Statistics Canada released its 2019 farm income and debt report this week, and it showed that realized net income of Canadian agricultural producers rose for the first time in three years. Net income was up 10.4 per cent to $4.9 billion in 2019, but as J.P. Gervais, chief economist of Farm Credit Canada (FCC) points… Read More
The federal government is providing $100 million to Farm Credit Canada (FCC) to administer an Agriculture and Food Business Solutions Fund. The fund is targeted at “proven, viable companies through unexpected business disruptions, such as the COVID-19 pandemic,” and will support enterprises in the agribusiness and agri-food sector, including companies involved in primary production, agri-tech,… Read More
As we enter the second month of physical distancing and economic shut down during the COVID-19 pandemic, discussions have begun on easing restrictions and potentially allowing some people to get back to work. But we don’t know how long that might take, or when it will happen, or what the economic recovery will look like… Read More
On Friday (March 27), the Bank of Canada initiated an emergency key rate cut of 50 bps to 0.25% in an attempt to defend the economy against the impacts of COVID-19. Additionally, the Bank of Canada will expand its balance sheet through purchases of Government of Canada securities to the tune of $5 billion per… Read More
Prime Minister Justin Trudeau has announced additional support for farmers and farm businesses, following last week’s announcement of $82 billion in various spending measures in response to the COVID-19 outbreak. Parliament will reconvene March 24, 2020, to pass emergency legislation for these previously announced measures, and to release $5 billion in additional lending capacity through Farm… Read More
Fresh off a fifty basis-point cut by the Federal Reserve in the U.S. on March 4, 2020, the Bank of Canada lowered its key rate by the same amount from 1.75 per cent to 1.25 per cent. In a written statement the Bank of Canada said, “As the situation evolves, the Governing Council stands ready… Read More
After a year of incredible adversity in Canadian agriculture, lenders such as Farm Credit Canada are especially alert to the needs of their clients. “We’re monitoring the financial situation,” says Michael Hoffort, president and CEO of FCC. In an interview with RealAg Radio host Shaun Haney, Hoffort says that where it’s challenging, FCC and other… Read More
We’re finishing off the week at Agri-Trade at Red Deer, Alta.,holl in the Nufarm booth. In today’s show, hear about: The importance of pre-seed burn downs for 2020, with Holly Nicoll of Nufarm; Seed quality, with Trevor Nysetvold of SGS BioVision; Supporting your parents in their retirement on the farm, with Patti Durand of Farm… Read More
Over the course of the summer, the U.S. Federal Reserve has cut interest rates twice, with the latest drop in its benchmark overnight lending rate taking it to a target range of 1.75% to 2%. Over the same timeframe, the Bank of Canada hasn’t touched interest rates, and the probability of seeing a cut this… Read More
As many producers are aware, there are a plethora of things going on in the global economic sphere… and growing concerns are rising. But how do we understand what everything means? How do we unpack it all? Farm Credit Canada’s chief economist J.P. Gervais joined RealAg Radio host Shaun Haney to give a little more… Read More
Every year in February, ag policy wonks, market followers, and politicians gather in Washington, D.C., for the USDA Outlook Forum. Not only does USDA release its forecasts for acres and production numbers, but the conversations also fill the hallways. Most years, the focus is on the fundamentals, but with so many trade patterns very cloudy… Read More
There are many who likely bristle at the thought of a foreign country investing in Canada, perhaps because most equate “investment” with “land buying.” But when we’re talking foreign direct investment, in this case, we’re talking about companies investing in Canadian businesses, and vice versa. And, as J.P. Gervais, chief agricultural economist with Farm Credit… Read More
Farmland values across Canada continued their climb in 2017, rising by a national average of 8.4 percent, according to Farm Credit Canada’s annual farmland values report. Saskatchewan saw the largest increase, at 10.2 per cent, followed by Nova Scotia at 9.5 per cent, Ontario at 9.4 per cent, Quebec at 8.2 per cent, and Alberta at… Read More
Low unemployment, major tax cuts, and looming trillion dollar deficits — the U.S. economy is hot, with growing concerns that it may be at risk of over-heating. Increasing odds of higher inflation and interest rates have stoked a pullback and volatility in the stock market after the Dow climbed to record highs in late January. The… Read More