Canadian Farm Debt Jumps as Interest Rates Decline

Nov 28, 2025

Amid declining interest rates, Canadian farmers piled on debt at the fastest rate in more than four decades in 2024.

Statistics Canada on Wednesday reported total national farm debt at the end of last year at a whopping $166.71 billion, up 14.1% from a year earlier and the largest annual increase since 1981, when double-digit inflation and unprecedented high interest rates made it difficult for farmers to service debts accumulated during a period of expansion in the 1970s.

In 2023, Canada farm debt increased by a much more modest 4.8% from a year earlier.

After more than two years of hikes, the Bank of Canada began cutting its key overnight lending rate in mid-2024, lowering it by 2.75% to its current level of 2.25%. Producers took on more debt as rates declined, StatsCan said, which in turn pushed farm interest costs higher.

In fact, interest expenses led the gain in total farm operating costs for the second straight year in 2024, rising 28.6% to $9.1 billion. That is roughly the same amount as farmers paid last year for fertilizer and lime, another major farm operating expense.

Total farm operating expenses in 2024 (after rebates) rose 2.7% to $78.5 billion.

Farm debt in Alberta jumped about $5.5 billion or 17.2% to $37.4 billion in 2024, while Saskatchewan debt increased around $2.8 billion or 13.2% to $24.4 billion. Manitoba debt was up around $1.6 billion or 13.7% to $13.8 billion. In Ontario, farm debt climbed roughly $5.1 billion or 13.5% to $42.8 billion.

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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.