The Canadian Federation of Independent Business recently released an index for November that measures the economic optimism of agri-businesses for the upcoming year across the country.
The index showed optimism in the sector rose to 64.5 points.
This represents an increase of 6.2 points over October’s figure of 58.3 points. An index level above 50 points means business owners who expected their business performance to be stronger next year outnumber those expecting weaker performances.
“Certainly agriculture is not immune to the global economic challenges that we have seen… but this is pretty positive news,” said Virginia Labbie CFIB’s senior policy analyst for agri-business.
The CFIB releases an agriculture business barometer index each month.
“It really measures our agri-business members optimism levels for the year ahead and it takes into account those various cost pressures,” Labbie said.
The barometer index focuses on issues that have most impact on agri-businesses in terms of costs such as fuel, energy and taxes, she said.
The index is also a good indicator of the current economic trend in the agricultural sector, she said.
She believes stable commodity prices and stability in the livestock sector have contributed to the present level of optimism.
Since mid 2009, the index figures have been on an upward trend, though there has been some fluctuations.
Before 2009, index figures were in the mid to low 40s, Labbie said.
The reliability of the index rests on the range of questions asked in the surveys.
Random agri-business participants are asked to comment on their outlook for the coming year, Labbie said.
The survey also requests commentary of the present state of the participants business including plans for recruiting permanent labour in the near future, she added.
CFIB representa 7,200 independent owners and operators of agri-businesses in Canada.
