July 5, 2022 By Farm Credit Canada
The most recent projections from Farm Credit Canada (FCC) suggest farm cash receipts could climb 15.9 per cent to $96.0 billion in 2022, driven by robust commodity prices and prospects of much stronger crop yields. This would surpass the 2021 record high, which was itself an increase of 14.9 per cent over 2020. The Canadian agriculture industry seems financially healthy based on gross farm income alone.
But the agriculture operating environment is evolving fast and sustained inflationary pressures on farm input prices dampen the outlook. Fertilizer and farm fuel prices are up, farm operating expenses increased, and the Bank of Canada lifted its overnight rate by 1.25 per cent over three months, with additional increases expected in the next four months. Is financial risk in Canadian agriculture significantly elevated in the current inflationary environment? |READ MORE
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