A new report from BMO says foreign exchange developments have yielded very different experiences for farmers in Canada and the U.S.
Senior economist Aaron Goertzen says the U.S. dollar has gained 20 per-cent on a trade-weighted basis since 2014, another negative factor for U.S. crop prices.
Goertzen says the 17 per-cent drop in the Canadian dollar has provided a like-sized lift to crop prices north of the border.
As a result of the weaker loonie, Goertzen says domestic crop prices in Canada are 18 per-cent below all-time highs, compared to nearly 30 per-cent in the U.S.
As well, he says prices have risen 5 per-cent from their recent low in mid-2014.
He says the lower loonie has been a particularly fortunate development given the mediocre crop yields in some areas over the past few years.
The prairies remain on track for a near record crop of canola and pulse crops are also at high levels.
For 2017, he sees a modest rebound but says large world grain supplies weigh on the market.