The ever changing Canadian dollar and the 2nd increase in interest rates by the bank of Canada will affect how Parkland farmers run their businesses.
Yet, according to J.P. Gervais the chief agricultural economist for Farm Credit Canada parkland producers are in a position to grow their farms in the next year.
“I think we are well positioned. One of the keys in incidental management is the first line of deafens that’s your working capital. If you look at equity positions of Canadian agriculture, we’re in most provinces; I would say we are above average in terms of our liquidity position. So we have strong working capital. We can face a few shocks, our leverage is right within line of what the historical average has been, and farm income is still very strong. We’re talking about 2017 being somewhat of a flat year, but you know, that’s off 2016 which was a record year. So, I don’t think we are in a bad position, I actually think we’re in a great position.
The debt to asset ratio in Manitoba’s agriculture industry is remaining historical low. Gervais says although there is debt the increase in profit is also increasing
