Canadian farmers continue to invest billions of dollars back into their businesses, in part to expand and in part to improve, according to a Statistics Canada survey recently released.
Between 1999 and 2001, the average per-farm investment increased 16 percent to more than $52,000, says the 2002 Farm Financial Survey. With more than 200,000 census farmers, that would translate into more than $10 billion in annual investment by farmers.
The investment helped trigger a sharp increase in asset values. It also helped to sharply increase farm debt.
During the four years to the end of 2001, average farm debt increased 50 percent to a little less than $200,000, according to the federal agency. For larger farms with sales of $500,000 or more annually, average debt increased 15 percent in two years to an average $942,000.
Read Also
Agri-business and farms front and centre for Alberta’s Open Farm Days
Open Farm Days continues to enjoy success in its 14th year running, as Alberta farms and agri-businesses were showcased to increase awareness on how food gets to the dinner plate.
Potato farmers were carrying the largest debt load, although farmers in supply managed sectors often report debt loads of several million dollars.
Saskatchewan, with one of the lowest average farm income and asset value levels, also had the lowest average farm debt in 2001 at $137,000.
The capital investment typically was a mixture of land purchases, building upgrades, new equipment and technology investments to improve on-farm environmental standards.
The federal survey reported that in 2001, investment in quota purchases increased 21 percent from two years earlier.
Statistics Canada said 60 percent of farmers reported making capital investments in 2001.
