Agri-businesses are feeling positive about the future according to a measurement done by the Canadian Federation of Independent Business.
It recently released an index for November that measures the economic optimism of agri-businesses for the coming year.
The index showed optimism in the sector rose to 64.5 points.
That was an increase of 6.2 points over October’s figure of 58.3 points. An index level above 50 points means business owners who expect their business performance to be stronger next year outnumber those expecting weaker performances.
Read Also
Ag In Motion 2025 site hub of activity
day before Ag in Motion preview.
“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 focuses on issues that have most impact on agri-businesses, including the cost of fuel, inputs, equipment 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 optimism.
Since mid 2009, the index trend has risen though there has been some fluctuations. In 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 on the participants’ business including plans for recruiting permanent labourin the near future, she added.
