Canadian farmers plan to spend less on farm equipment in 2010 than they did last year.A survey by Farm Credit Canada indicates 59 percent of respondents intend to spend the same or less this year.That includes three percent spending significantly less, 11 percent spending less and 45 percent spending the same as last year.On the other hand, 39 percent intend to increase their spending in 2010 and three percent intend to significantly increase their spending on equipment, for a total of 42 percent.Darren Bly, FCC vice-president, said the downward trend in spending is a surprise.“What we didn’t see coming was a large decrease in planned spending compared with 2009,” he said.FCC lends money for equipment to producers and agribusinesses directly and through its relationships with more than 700 equipment dealers across Canada.The survey was conducted among 900 producers across the country in November 2009.The average amount of an FCC equipment loan has increased in the past two years to $76,000 from $70,000.Producers in Quebec were most likely to say they will spend less (21 percent) compared with their counterparts in Alberta (eight percent), Ontario (nine) and British Columbia (six).One interesting development is that 37 percent of producers said they share equipment.Quebec producers are more likely to do this (48 percent). The number is 33 percent in Saskatchewan, 32 percent in Alberta and 29 percent in the Maritimes.“Sharing equipment may be a good business decision as the cost of equipment increases and producers seek alternative ways to save,” said Bly.FCC has set up a leasing program for those looking for alternatives.
Read Also
Saskatchewan looks to expand trade in Indonesia
Saskatchewan intends to increase its agricultural partnership with Indonesia.
