It is early in the sales year to draw conclusions but the prairie farm cash crunch had a sharp impact on farm machinery sales during the first two months of the year.
To the end of February, farm equipment dealerships had sold 99 four-wheel drive tractors, down one-third from last year’s depressed figures.
And 92 combines were sold, compared to 185 in the same two months a year ago.
The figures were released last week by the Burlington, Ont.-based Canadian Farm and Industrial Equipment Institute.
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Sales in 1998 were the lowest in years and CFIEI officials are predicting the financial insecurity in early 1999 will depress sales even more.
However, sales of smaller tractors for hobby farms and acreages were booming in early 1999, up 75 percent.
Money almost certain
The federal government last week introduced budget legislation that will make more secure the advance payment program operated by farm marketing boards or farm groups.
Amendments to the Agricultural Marketing Programs Act will make it clear the federal government is a direct guarantor of money loaned by a financial institution to a farm group for advance payments on an unsold crop.
Legislation in 1997 had the government providing a guarantee to the farm group administering the advance payment program, ranging from canola on the Prairies to horticultural crops in British Columbia.
Lenders complained that it was not an unconditional federal guarantee of money advanced. Ottawa is changing the law.
More food exported
Canada recorded a food trade surplus of $650 million in January, part of a $2.7 billion merchandise trade surplus that was the largest in two years.
Statistics Canada reported that in January, the value of agricultural and fish exports totalled $2.1 billion. Imports were valued at almost $1.5 billion.
