Debt forces re-evaluation of planned purchases

It was nice while it lasted, but farmers are facing the financial hangover of an era of cheap credit. With thousands needing to roll over large amounts of debt, critical decisions will be forced on farmers.

“As those loans (from the low interest rate years) are maturing, more and more and more operations face the decisions of what to do,” said J.P. Gervais, Farm Credit Canada’s chief economist.

For years, the price of land and equipment has steadily increased but with historically low interest rates available for more than a decade, farmers could finance major purchases with manageable interest costs.