Ag sector remains profitable despite financial pressures according to new report
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Canadian agriculture continues to show strength and resilience against a backdrop of higher interest rates, trade uncertainty and volatile commodity prices, according to Farm Credit Canada’s (FCC) latest analysis of farm assets and debt.
“Our latest temperature check shows the industry is well-positioned to thrive in the current economic and financial environment,” FCC’s Chief Agricultural Economist JP Gervais said in a press release issued Tuesday.
Total farm debt in Canada recently exceeded the $100 billion, according to Statistics Canada. But according to Farm Credit Canada’s report, most Canadian farms continue to be in a good financial position and the majority of producers have used debt to make strategic investments in improving their operation’s productivity.
“The current debt-to-asset ratio in agriculture remains lower than the 10-year average, both nationally and in most provinces, and farm liquidity remains healthy, despite facing challenges in the current economic environment,” Gervais said in the statement. “These are just some of the key indicators we monitor to assess the overall health of the industry.”
