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ALBERTAFARMEXPRESS.CA • JANUARY 16, 2017
Loonie value will determine 2017 ag outlook FCC’s chief agricultural economist says a low Canadian dollar is expected to continue to benefit the sector STAFF
A
low loonie is likely to continue to benefit Canadian farmers through 2017. That’s according to J.P. Gervais, Farm Credit Canada’s chief agricultural economist, who added that will be the continuation of a trend seen throughout 2016. “There are certainly other factors that could influence Canadian agriculture, such as the global economy, the investment landscape, commodity and energy prices,” Gervais said in a release highlighting issues for the coming year. “The Canadian dollar, however, has been a major driver for profitability in the last couple of years and could have the biggest influence on the overall success of Canada’s agriculture industry in 2017.” Gervais is forecasting the dollar will hover around the 75-cent mark and will remain below its five-year average value relative to the U.S. dollar in 2017, potentially making the loonie the most significant economic driver to watch in Canadian agriculture this year. The low dollar not only makes Canada more competitive in agricultural markets relative to some of the world’s largest exporters, but it also means higher farm cash receipts for producers whose commodities are priced in U.S. dollars. The enhanced competitiveness will also mean stronger demand for Canadian agricultural products, an important issue given the higher projected supply of livestock and crops. That could translate into revenue growth, especially for livestock producers who are hoping for a rebound from weak prices in the latter half of 2016.
“A lower Canadian dollar makes farm inputs more expensive, but the net impact in terms of our export competitiveness and cash receipts for producers is certainly positive.” J.P. Gervais
“A l o w e r C a n a d i a n d o l l a r makes farm inputs more expensive, but the net impact in terms of our export competitiveness and cash receipts for producers is certainly positive,” Gervais said. “Given the choice, producers are better off with a low dollar than one that’s relatively strong compared to the U.S. dollar.” Food processors are also better off with a low Canadian dollar, which is partly the reason behind the strong growth in the gross domestic product of the
sector over the past few years. Canadian food products are less expensive for foreign buyers, while it is more difficult for foreign food processors to compete in the Canadian market, according to Gervais. “The climate for investment in Canadian food processing is good, given the low dollar and growing demand in the U.S.,” Gervais said. He projects that exports of food manufactured products to the U.S. could climb five per cent in 2017. But he also notes that “a weak loonie raises the price of inputs like fertilizers or equipment, making them more expensive for producers, which may impact their purchase decisions.”
The lower dollar looks to be a net gain for agriculture. PHOTO: thinkstock
Open Farms Days breaks record for visitors and sales
T
he latest edition of Open Farm Days broke records as visitors flocked to farms and ranches across the province to experience the sights, sounds and tastes of rural Alberta. Newly released data shows there were close to 18,000 visits to the 92 farms and ranches hosting events and activities Aug. 20-21, while 26 culinary events offered farmto-table experiences during the two days. On-farm sales totalled $134,280 — an increase of 35 per cent over the previous year’s event. 2015 2016 % Growth Farm participation
72
92 28 per cent
Culinary participation
18
26 44 per cent
Visits
10,156
17,804 75 per cent
Sales
$99,415.50
$134,280 35 per cent
Open Farms Days aims to grow farm-to-fork tourism opportunities and support growth in the local food sectors. The event is put on by the province, Ag for Life, the Alberta Association of Agricultural Societies, Travel Alberta and participating farms, ranches and agricultural societies. — Province of Alberta release
EVENTS DESIGNED TO MAKE YOU
MORE PROFITABLE! Leading Edge – Farm Management Series February 15 & 16, 2017
Red Deer – Holiday Inn & Suites on Gasoline Alley
David Irvine The Leader’s Navigator
The Leading Edge Farm Management Conference gives delegates unprecedented access to Alberta’s top farm business management advisors for two days of in-depth learning about the financial and legal side of the farming business. The two days will feature a number of sessions to help farm managers with managing and developing: Farm Business Taxation
Wills and Estates
Taxation and Liability Tips and Traps
Dealing with the Bank
Shareholder Loans and Land in a Company
Evening Q&A Forum with All Speakers
Merle Good
Independent Farm Management Consultant
THIS YEAR’S CONFIRMED SPEAKERS INCLUDE:
canoLAB – Agronomy Series February 22 or 23, 2017
Lakeland College in Vermilion, AB
Topics include:
Rob Hall
Founder, BankSpeak
Harvest Losses, canoLAB is a hands-on, interactive diagnostic workshop with live plants and insects. Register for either day: Wednesday, February 22 or Thursday, February 23 from 8:30am to 4:30pm daily. Each day is identical. Lunch is provided. Attendees are divided into small groups, so attendance is limited to ensure maximum instructor interaction.
Herbicide Action & Injury, Fertility, Genetics, Insect Damage Assessments,
Participants are divided into groups of 20 and will take part in 8 x 45 minute sessions.
Temperature Inversions,
Instructors will be among Western Canada’s top researchers and extension people.
Blackleg Misdiagnoses and Management
CCA and Pesticide Applicator credits will be applied for.
Rob Strilchuk
Tax Adviser – Agriculture, MNP
and much more.
The event is co-hosted by the Alberta Canola Producers and the Canola Council of Canada. y vent b ither e
ringys. 6 albertacanola.com/events 780.454.0844 a u br lybird sav for e gister
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for ear
Tracy Hanson Partner, Walsh LLP