Business & Policy
Is Canadian Agriculture Viable?
Jan. 5, 2012 -Canadians are having severe trouble balancing their debt and income ratio, says a University of Guelph Professor.
According to an article in Farm Focus, Dr. George Brinkman, a University of Guelph Professor Emeritus of Agricultural and Resource Economics, told the Nova Scotia Federation of Agriculture that Canadians have an debt-to-income ratio of approximetely 16-1.
"Practice survival management, if necessary," says Dr. Brinkman. If a farmer cannot pay back the debt from the land he owns, debt will accrue at a very large rate, especially with newly purchased land.
"The good news is we probably have 3-5 years to do something about these factors before interest rates rise 3-4 per cent. Watch interest rates because they are the single most critical thing to affect Canadian agriculture in the next few years."
For the complete article, click here.
January 5, 2012 By Farm Focus