A survey by Farm Credit Canada (FCC) shows that 42 per cent of respondents will spend more on equipment, 45 per cent are not planning any change and 14 per cent stated they will spend less.
Quebec producers (21 per cent) are significantly more likely to state that they plan to decrease spending on equipment than producers from Alberta (eight per cent), British Columbia (six per cent) and Ontario (nine per cent).
The FCC Vision Panel survey of more than 900 producers (www.fccvision.ca)was completed in November 2009.
“What we didn’t see was a large decrease in planned spending compared to 2009. This was a bit of a surprise since increased commodity prices in 2008 helped drive record sales that year,” FCC vice-president Darren Bly said in a release.
The survey also asked primary producers about equipment ownership. Nearly three-quarters of respondents (74 per cent) own their equipment and 14 per cent own some equipment and rent the rest. Interestingly, over one-third of producers (37 per cent) share one or more pieces of equipment with a neighbour. Producers from Quebec (48 per cent) are significantly more likely to do this than producers from other provinces: Alberta (32 per cent), British Columbia (25 per cent), Saskatchewan (33 per cent) and the Atlantic provinces (29 per cent).
FCC says the average amount of an equipment loan at FCC has increased in the past two years from approximately $70,000 to $76,000.