interest rates Archives - Page 7 of 8

The dangers of cheap money

Interest rates at historical lows could pose future problems for farmers

By Andrew Allentuck February 16, 2021

For farmers burdened with heavy debts, historically low interest rates can seem to be salvation. Lower payments for equipment, for land loans, for bills past due — it’s life support for financially squeezed farms and, for that matter, for most other kinds of business other than banks and other lenders, which can’t get much profit […] Read more

Crops, Machinery

Machinery costs driving up fixed farming expenses

By GFM Network News February 5, 2020

MarketsFarm — Fixed costs on farms continue to rise year-over-year, a statistic largely attributed to increasing land values and interest rates. At the beginning of 2019, Farm Credit Canada (FCC) reported farmland values across Canada increased by an average of 6.6 per cent during the previous year. But that’s not the main driver of fixed […] Read more

General, Markets

Report shows slower pace for rising farmland values

By GFM Network News April 29, 2019

While lower-valued farmland more often showed a higher rate of increase, and price hikes varied from region to region, Canada’s farmland values on average have booked their slowest year-over-year rate of increase in almost a decade. That’s according to the annual Farmland Values Report from Farm Credit Canada (FCC), in which the federal ag lending […] Read more

Livestock, Machinery

FCC offers up new Starter Loans

By GFM Network News March 3, 2019

“Preferential” loan rates are available to young farmers or agribusinesspeople planning start-ups through a new Farm Credit Canada lending program. Lawrence MacAulay, addressing the Canadian Federation of Agriculture’s annual meeting Wednesday in Ottawa when he was still federal minister of agriculture, unveiled the federal ag lending agency’s new Starter Loan Program. The program, according to […] Read more

General, Markets

Ag seen gaining on slightly weaker loonie in 2019

By GFM Network News January 11, 2019

CNS Canada — Farm Credit Canada (FCC) predicts the Canadian dollar will spend the year around the 75-U.S. cent mark — slightly softer than last year’s average of 76. “We’re going to see volatility throughout the year obviously but when we look at that season, or the full year average, we’re looking for it to […] Read more

As interest rates edge upwards, it’s probably a good idea to know how much flexibility you have to purchase major assets, should the opportunity arise.

Features, News

Is it too expensive to borrow money?

When the neighbour’s land is for sale, are interest rates too high to say 'yes?'

By Angela Lovell November 27, 2018

The best time to figure out whether or not you can afford to borrow more money probably isn’t when you get a tip off that the neighbour wants to sell some land at a really tempting price. But inevitably, it’s when faced with those kinds of situations that producers take stock of where they are […] Read more

For the most part, recent strong net income will take the sting out of interest rate hikes.

Features, News

Rising interest rates, rising risk?

Farm Management: What do today’s rising interest rates mean for your farm’s balance sheet

By Angela Lovell November 27, 2018

There are a number of ways that rising interest rates affect farm balance sheets. They can negatively affect cash flow, can create a need to adjust short-term and long-term liabilities and affect the value of farmland that in turn can impact the farm’s asset values. “Higher interest rates will impact operations differently based on how […] Read more

Crops, Markets

Trade certainty doesn’t translate to higher loonie

By GFM Network News October 12, 2018

CNS Canada — Even with more certainty around trade with the U.S., Canadians shouldn’t expect to see the dollar flying in value. “It’s hard for me to see the Canadian dollar gain value against the U.S. dollar in the short term, unless the Bank of Canada totally revises its stance towards interest rates,” said J.P. […] Read more

Canola, Crops, Markets

ICE weekly outlook: Canola facing uncertainty

By GFM Network News June 13, 2018

CNS Canada — ICE Futures Canada canola contracts fell to their lowest levels in more than three months during the week ended Wednesday, but could still have more room to the downside given the general sense of global trade uncertainty. “Every commodity trader in North America or globally is scared to death right now,” said […] Read more

Columns, Guarding Wealth

Watching risk and interest rates

Guarding Wealth: There’s a gulf opening between the borrowing costs and what you can get on a GIC

By Andrew Allentuck May 9, 2018

Interest rates are rising in the U.S. and Canada. That brings opportunity to those putting money into savings accounts and guaranteed income certificates, but also pressure on those who borrow. Global politics, trade negotiations and the sheer risk of investing are separating returns on investments from the cost of borrowing. Trend setting government bond interest […] Read more

Field-by-field mapping could improve yield, productivity predictions

U.S. grains: Corn futures edge up, soybeans sag on improving US crop ratings

U.S. livestock: Cattle futures up, hogs mixed

GFM Network News