Farm Credit Canada’s recent outreach to specific agrifood sectors hit by unusual environmental conditions has now extended to those hit by the broader “economic environment.” The federal ag lender on Tuesday said it will offer an unsecured credit line of up to $500,000 with loan processing fees waived, “to help producers, agribusinesses and agri-food operations […] Read more
FCC offers new credit line against ‘current economic environment’
Ag lender to waive loan processing fees
AgriSpirit Fund deadline looms
Reading Time: < 1 minute Applications are now being accepted for the FCC AgriSpirit Fund, with $1.5 million in funding available this year. The program awards grants of $5,000 to $25,000 for community improvement initiatives, including constructing or upgrading community buildings; firefighting and rescue equipment; play structures and recreation areas; and community gardens. The application deadline is May 15. For […] Read more
Buy or rent? Land rent-to-price ratio can help farmers decide
FCC sees current ratios on farmland as (roughly) stable
Higher interest rates don’t seem to be affecting the ratio between land values and land rental costs — at least, not yet. Farm Credit Canada’s latest analysis of farmland rental prices says they’re roughly maintaining their traditional linkage, says J.P Gervais, the organization’s chief economist. “We were curious to see whether that would bring up […] Read more
Food sales grew but margins tightened in 2022, FCC says
Modest further growth expected this year
Food and beverages sales increased in Canada last year, even as margins hit an historic low and consumers chose Canadian less. According to the latest FCC Food and Beverage Report, released Tuesday, sales increased 11 per cent to $156 billion in 2022. These gains came largely from higher export values and strength in the grain […] Read more
Alberta farmland values up 10 per cent on average
Alberta's increase comes in below a national average that exceeded expectations
Reading Time: 4 minutes Average Alberta farmland values rose 10 per cent in 2022, according to Farm Credit Canada statistics released March 13. That’s less than the 12.8 per cent average for the rest of the country, but it’s the largest increase the province has seen since 2015, when prices rose 11.6 per cent. Last year’s figure follows increases […] Read more
Farmland values exceed expectations
Ontario leads the country with 19.4 per cent increase
Average farmland prices were up 12.8 per cent in Canada in 2022, the largest increase seen since 2014 when the increase was 14.3 per cent. The increase follows gains of 8.3 per cent in 2021 and 5.4 per cent in 2020. J.P. Gervais, FCC’s chief economist, said the numbers were a little bit of a […] Read more
Farm Credit Canada forecasts cattle prices to strengthen
Reading Time: < 1 minute Farm Credit Canada is forecasting much higher cattle prices this year. The lender predicts hundred-weight prices for 550-pound steers will average $270 (versus $225 last year) and $225 for 850-lb. steers (versus $185 in 2022). “The robust prices will be a big reason margins in the cow-calf sector are forecast to be strong in 2023 […] Read more
FCC says high costs favour more wheat acres in 2023
Reading Time: < 1 minute High prices for fertilizer and chemicals will push up wheat acres and lower canola and corn plantings this year, Farm Credit Canada says in its latest outlook for crop inputs. Overall acreage for wheat will jump 7.3 per cent as farmers turn to “less-input-intensive crops,” the lender forecasts. It predicts both canola and corn acres […] Read more
Plant protein processor Merit Foods in receivership
Company owes $95 million to EDC, FCC
The company behind a new Prairie processing plant extracting plant-based proteins from peas and canola has landed in receivership, in the high eight figures’ debt to its secured lenders. PricewaterhouseCoopers (PwC) on Wednesday announced it’s the receiver for both Merit Functional Foods Corp. and the numbered company that owns Merit’s processing plant and property in […] Read more
Chequebook will get a workout, but a good year expected
Economist predicts a five per cent rise in input costs, but says commodity prices should stay high
Reading Time: 3 minutes Think the 2022 crop was the most expensive ever put into the ground? This year might give it a run for its money. The good news, such as it is, is that input costs are no longer shooting up as fast as they did last year. “For 2023 we’re expecting an increase (in fertilizer prices) […] Read more
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