Glacier FarmMedia – Farm Credit Canada predicts a bit of a rocky road ahead for Canadian farmers, with input prices high, commodity prices low and interest rates not expected to drop in the short term. “The sentiment of the industry is not the greatest right now,” said Desmond Sobool, FCC’s director of economics and deputy […] Read more
Tag Archives inflation — page 2
Loonie’s value depends on timing of interest rate declines
Many economists expect central banks will begin winding down interest rates this summer, and that will likely affect currency exchange rates, including the Canadian dollar. One thought circulating among economists and analysts is that because of the surprisingly strong economy in the United States, its central bank, the Federal Reserve, could remain wary of inflation […] Read more
FCC expects profitability to decline this year
A prominent Canadian agricultural lender is projecting a 4.8 percent decline in farm cash receipts in 2024, thanks in part to a softening market. Consequently, its leading economist is urging producers to find any way they can to save money. “In this environment, I do think that management skills are absolutely critical,” J.P. Gervais, vice-president […] Read more
Cattle futures moderate, but prices should remain strong
Cattle futures prices have come off record high levels but should remain strong in 2024 because market-ready cattle supply will be tight. The price level will also be affected by how well the American and Canadian economies do in the coming year and how secure consumers feel. I wrote recently about the signs that inflation […] Read more
Farm revenue rises despite falling crop prices
Numbers do not include input costs, and marketing volumes will drop in 2023 because the crop was smaller than in 2022
SASKATOON — Farm revenues have been good in 2023 despite falling crop prices, according to Statistics Canada. Farm cash receipts for Canadian farmers totalled $72.5 billion over the first three quarters of the year, up 7.9 percent from the same period in 2022. Crop receipts were up $4.5 billion to $41.4 billion despite the drop […] Read more
Inflation fight nears end but interest rate cuts unlikely
The evidence is mounting that the fight against inflation is being won without pushing major economies into recession. The hoped for “soft landing” appears to be within grasp. Prices are still going up, but the rate of increase has fallen dramatically. It might take a while to reach central banks’ desired goal of two percent, […] Read more
Inflation and interest rates can be uncomfortably sticky
Farmers are facing the dreadful truths of inflation and interest rates: both can be very “sticky.” Prices for many essential farming inputs have soared in recent years. Whether it’s for the cost of buying a new combine, paying the wages for a new hire or paying for the services of a lawyer or accountant, few […] Read more
Food costs top of mind for consumers
Report says ability to afford shopping at the grocery store is the top life concern for Canadians for the fifth year in a row
Katie Clark cancelled her plans to cook Thanksgiving dinner this year because of rising food costs. The 32-year-old Toronto-based single mom says this isn’t the only way rising food costs have affected her over the last year. “It’s really affected what I make and how I cook, and it’s taken the joy out of it […] Read more
EU organic output out of step with consumption
European farmers say they are encouraged to produce more organically even as consumer interest in the product wanes
CHARLOTTETOWN, P.E.I. — Organic consumption is falling in Europe even as governments mandate more production using that farming system. The European Commission is not paying attention to what people want, said Lode Ceyssens, president of the Belgian Farmers Union in Flanders. “They are not following consumer trends,” he said during a session on market and […] Read more
Commodity prices lag food inflation, says NFU
Food processors and retailers are good at “leaving the impression that somehow these much higher food prices are somehow directly related to the farmgate prices,” said Stewart Wells, vice-president of operations for the National Farmers Union.
