A new report from Farm Credit Canada paints a strong financial picture for the agriculture sector in 2017.
Farm Credit Canada has released it’s 2016-17 Outlook for Farm Assets and Debt Report.
Farm debt in Canada continues to climb.
Statistics Canada says farmers’ total debt reached $91.8 billion last year.
Despite carrying that much debt, FCC chief agricultural economist J.P. Gervais says farmers are in a strong position to meet their financial obligations.
He says in 2015, the debt to asset ratio on Canadian farms remained historically low at 15.5% compared to the previous 5 year average of 15.9%, and a 15 year average of 16.7%.
Gervais says after a prolonged period of strong growth in farm asset and land values, FCC is projecting a deceleration in both increasing land values and farm debt levels.
He says good working capital is also a key factor behind continued financial stability in agriculture.