The dollar may be in the stratosphere, but few experts are predicting that it will weaken anytime soon. That includes economists with FCC.
Tag Archives economy
Manitoba Ag Days: Loonie above 70 cents? Not anytime soon, says Farm Credit Canada
FCC’s top economic charts to monitor in 2024
Downward trends for cattle, swine herds; positive bent to feed, fertilizer affordability
As we start the new year amid elevated inflation and major headwinds facing the economy, here are our top charts to help make sense of the economic environment for farm operations, agribusinesses and food processors.
Canadian farm cash receipts rise in 2022, but so do inputs
Total farm operating expenses see largest increase in more than 40 years
Glacier FarmMedia – Farm revenues have been good in 2023 despite falling crop prices, according to Statistics Canada. Farm cash receipts for Canadian farmers totalled $72.5 million over the first three quarters of the year, up 7.9 per cent from the same period in 2022. Why it matters: Farm cash receipts are used to estimate […] Read more
Federal economic statement offers little for agriculture
Changes to underused housing tax and biofuel-related tax credit among few interest pieces
Glacier FarmMedia – Agriculture mentions were light as the federal government unveiled its 2023 Fall Economic Statement Nov. 21. A search of the 141-page document for the term “agriculture” revealed only a handful of results. One of the few sections of interest for farmers referred to the use of waste biomass to generate electricity and […] Read more
Canadians trust farmers despite high food costs — for now
How farmers have maintained, and could risk, public trust
Rising food prices have been drawing the ire of the Canadian public, but the bulk of that frustration and anger is not directed at farmers. Not yet, at least. Food retailers are viewed unfavourably, but farmers remain one of the most trusted demographics in the food system. That trust is at risk. Why it matters: […] Read more
Report aims to show animal agriculture’s interconnections
CAPI hopes to broaden policymakers' perspective
A new report for the Canadian Agri-Food Policy Institute seeks to educate policymakers about the impact of animal agriculture on economic, social and environmental levels. The report, titled Forces Impacting Animal Agriculture In Canada: A Synthesis, delves into the issues surrounding cattle, dairy and poultry production in the country and how it is interconnected within […] Read more
Farm revenues should rise in 2023, but so will costs
Annual FCC Economic Outlook focuses on predicted global economic slowdown
Food price inflation and labour market volatility remain the post-pandemic factors to watch, Farm Credit Canada finance specialists said during the agency’s annual economic outlook Jan. 24. Although challenges like supply chain disruptions and fluctuating input costs have eased somewhat, they will likely have an effect on farm costs and profitability in 2023. Held the […] Read more
Increasing interest rates put pressure on national debt obligations
Shifts continue in global policies and politics, says commodities economist
Trying to predict the course of commodity prices from one year to the next is a complex task. It requires a broad understanding of global monetary and geopolitical influences that can be confusing and contradictory. Arlan Suderman, chief commodities economist with StoneX Group, gave attendees at the recent Ontario Agricultural Conference a robust overview of […] Read more
Chronic labour shortages increase national food security risk: study
Labour shortages trigger lost sales, lost contracts and decreased services
Labour shortages are a global issue across every sector, including Ontario’s agri-business, according to a recent survey from the Canadian Federation of Independent Business. “We found that almost two-thirds (61 per cent) of agri-business owners turned to their existing employees to work more hours due to lack of staff,” said Jasmin Guenette, the federation’s vice-president […] Read more
Used farm equipment to remain pricey
Strong farm cash receipts, weakening U.S. exchange rate underpins farm equipment values
Glacier FarmMedia – The price of new and late model farm equipment will continue to be high in 2023. As the loonie’s value falls in relation to the American dollar, assets manufactured outside of Canada cost more. “Especially when you’ve got a piece of equipment that you put on order, at some point they’re (dealers) […] Read more
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