Rauri Qually and Pam Bailey say they won't be able to buy new farm equipment for a couple of years, partly because of an increase in the Bank of Canada's benchmark interest rate.
"We've been managing, but there are a lot of farmers across Manitoba and many different aspects of agriculture, from grains and oilseeds to livestock to specialty crops to fruit that are struggling."Most farmers carry a lot of debt, buying seed, fertilizer and equipment upfront every year, then hoping for a bumper crop and high returns many months later.
At an agriculture conference in Winnipeg, farmer Toban Dyck was also keeping an eye on interest rates. And while farmers are resilient, "there are lots of deep sighs and just kind of one foot in front of the other," he said.One of the big concerns is that this may just be the beginning of increasingly high interest rates.
"Fundamentally, you have to see interest rates higher than the expected rate of inflation. Right now, inflation expectations are six or seven per cent and interest rates are not nearly that high yet so there may be more interest rate hikes to come."Gray sees livestock producers as the most vulnerable in the sector. The cost of buying and feeding cattle are up, but the final price at market is not keeping pace.
Great! Farmers spend way too much on equipment that sits in barns 99 percent of the time.
FriendsOScience All while they artificially inflated the economy while printing non-existing money without OUR approval. Now we have to suffer for something we never agreed to, while our REAL money made it to Ukraine and other washing machines
I support Canadian farmers, but I’ve yet to meet a poor one.
New $100,000 pick up and $400,000 tractor every two years? Why not? Interest rates aren't that high.
LIBS, after ruining Canadian energy, turn on farmers using multiple damaging policies. Thanks for voting Libtard. SUCKERS. TrudeauworstPMever
CBC. Yesterday you were a proponent of shutting farms in Canada and stealing the land in the name of climate change. Keep your propaganda straight. CBC frauds.
Bill Gates needs more cheap land
Slowly trying to get us all to eat bugs
blaming interest rates rising for changes in the economy is stupid interest rates are supposed to be a reaction
Maybe basing the success of any business on years of artificially low lending rates continuing indefinitely is a bad idea?
The more important story is what is Trudeau planning to do to farmers.?
So if we have enough money as a middle class, inflation increase and everything becomes expensive. Is it like we have to be always needy to please the system and have stable economy? Something is missing here, right?
This country is ran by a cartel benefiting from usury, while the majority of the population are drowing in interest payment. Yet, we see no reaction, just like a flock of sheep tended by a shepherd. Canada
Trudeau inflation will bring this Country to its knees.
In other words, the BoC will stop food production, causing less food for Canada. Starving people, thus committing genocide!
Yes, there will be multiple stories about people slowing investment, slowing spending. That’s exactly what’s supposed to happen. Slow down economic activity to bring inflation back down. Painful but necessary.
It will slow all investment and spending. That is the point
The way Bill Gates is going there won’t be any new land for anyone in the near future… but we won’t talk about that….
farming is more about debt management than actual farming these days.