Farm Credit Canada is advising farmers across Saskatchewan to do a financial stress-test following the recent rate hike by the Bank of Canada:
The bank rate jumped a quarter percent on Wednesday and there is a prospect of more increases.
FCC chief agricultural economist J.P. Gervais says farmers should review their long-term financing options and look at what could happen if interest rates rise one percent.
“Perhaps there should be a plan to take a bit of risk off the table,” Gervais said. “Maybe locking in a portion of your books so you’re not potentially exposed to future fluctuations in interest rates.”
Gervais says the farm economy is strong and this weeks increase will have little impact on farmers.