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: Sweetener Effects on Gut Health - Dr. Kwangwook Kim

In this episode of The Swine Nutrition Blackbelt Podcast, Dr. Kwangwook Kim, Assistant Professor at Michigan State University, discusses the use of non-nutritive sweeteners in nursery pig diets. He explains how sucralose and neotame influence feed intake, gut health, metabolism, and the frequency of diarrhea compared to antibiotics. The conversation highlights mechanisms beyond palatability, including hormone signaling and nutrient transport. Listen now on all major platforms!

“Receptors responsible for sweet taste are present not only in the mouth but also along the intestinal tract.”

Meet the guest: Dr. Kwangwook Kim / kwangwook-kim is an Assistant Professor at Michigan State University, specializing in swine nutrition and feed additives under disease challenge models. He earned his M.S. and Ph.D. in Animal Sciences from the University of California, Davis, where he focused on intestinal health and metabolic responses in pigs. His research evaluates alternatives to antibiotics, targeting gut health and performance in nursery pigs.