Nowhere but up from here: will an increasing interest rate affect your farm?

Jul 14, 2017

Bank of Canada raises lending rate up to 0.75 per cent from 0.5 per cent

By Kaitlynn Anderson

Farms.com

Agriculture will be able to manage the recent interest rate growth, as well as the one expected this fall, according to J.P. Gervais, chief agricultural economist at Farm Credit Canada.

The Bank of Canada increased the interest rate by a quarter of a percentage point earlier this week, up to 0.75 percent from 0.5 per cent.

This rate change is the first increase since September 2010, according to data collected by the Bank of Canada.

Source: Tradingeconomics.com

“This increase is not significant enough for most farmers and agribusiness operators to revise their business strategies, but I recommend they consider reviewing their long-term financing options with the expectation that this increase could be the beginning of a slow and gradual increase,” Gervais said in a release by FCC on Wednesday.

Producers are advised to review their personal risk tolerance when deciding between a fixed-rate or a variable-rate mortgage.

The chief economist remains optimistic, reminding Canadians that rising interest rates are an occurrence that an entire generation has yet to experience.

“Rates have been going down and have been low for many years. So, to them, this is something new that leaves them wondering,” Gervais said in an article released by FCC this morning.

For more information on why interest rates rise and the effects of the increase, watch the following video from the Financial Post.

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.