WORKERS’ COMP CLAIMS JUMP
OIL LEASE WOES SET NEW RECORD
But reporting of workplace injuries can be used to make farms more safe » PG 3
More and more companies aren’t paying their rent — or their municipal taxes » PG 2
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It’s been perfect conditions for clubroot Wet conditions not only increase spore counts but may also favour development of strains able to overcome resistant varieties By ALEXIS KIENLEN AF STAFF
Farm debt at record highs — but top lender not worried
While FCC says most farmers can handle their debt load, financial expert Merle Good says some are ‘robbing Peter to pay Paul’
T
his year’s wet conditions may leave a nasty legacy — more clubroot infestation and more strains of the pathogen able to overcome resistant varieties. “In the years where there is more wet weather, we expect to have more severe symptoms and more widespread infestation,” said Stephen Strelkov, a University of Alberta professor of plant pathology who has become one of the world’s top experts on the soil-borne disease. “In cases where a susceptible variety is being grown or a new strain of pathogen has emerged, we would expect there to be more symptoms showing up this year.” The clubroot pathogen is most prevalent around Edmonton, has also moved into the Red Deer and Westlock areas, and is spreading by about 30 kilometres each year. In the most infected fields, there are 10 million spores in a gram of soil.
see CLUBROOT } page 7
BY JENNIFER BLAIR AF staff
F
arm debt has hit a record high, bringing back some unpleasant memories of the 1980s debt crisis. But we’re not there yet, said farm business expert Merle Good. “In 1980, we had huge inflation and huge interest rates,” said Good, a longtime tax specialist with the provincial government who now runs a private consulting business. “In the ’80s, people were selling their entire farm base and leaving agriculture. The balance sheets today are much better than they were back then.” As of Dec. 31, 2015, Canadian farmers had $86.8 billion in total debt, Statistics Canada figures show. In a report released earlier this month, Farm Credit Canada (FCC) projected that farm debt will increase by five per cent in 2016 and another three per cent 2017, hitting $93.2 billion this year and $95.4 billion next year.
“I can look at some people’s books and say, ‘You didn’t make the payment. Your operating loans made your payment.’” Merle Good
reality check will you pass?
$
Worried your debt is too high?
Take this test
step 1.
Add up your operating loan, accounts payable, and cash advances at year’s end.
step 2.
Add up unsold inventory, accounts receivable, and pre-purchased inputs.
step 3.
Divide the first number (liabilities) by the second (assets).
RESULT
If the first number is 50 per cent higher than the second, ‘you’ve got to make some changes.’
But farm income has been keeping pace with farm debt, making the increased level of debt affordable, said J.P. Gervais, FCC’s chief agricultural economist. “We say with confidence that farmers are in a strong position to meet their financial obligations,” said Gervais. “We think that we are going to be able to ride the wave of strong income a number of additional years. We know agriculture is a
see FARM DEBT } page 6
Poor prospects
Fusarium on the rise } PAGE 24