Interest rate increase could slow demand for farmland

Sep 09, 2022

The Bank of Canada announced this week an increase to its policy interest rate of 75 basis points to 3.25%, as it continues to address inflation.

FCC Chief Economist JP Gervais talked about the impact on farmers.

"Higher interest expenses actually has an impact on margin. I think the good news is that the demand for what we grow is still very robust, both domestically as well as globally. We've had to deal with elevated input costs. Costs have been coming down a little bit now but so have commodity prices. I think margins remain positive for grains and oilseeds. I think the fact that feed prices have declined a little bit, brings a little bit of relief to livestock producers. Overall, margins are projected to be positive for this coming marketing year but no doubt that higher interest expenses are going to be impacting margins."

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Video: Do Cold Temps Impact Emerging Corn & Soybeans? | Pioneer Agronomy

A cold snap swept across west central Minnesota and eastern South Dakota, bringing frost, fog, and temperatures dipping into the 20s—raising urgent questions about early crop damage.

Pioneer Agronomist Eric Rice breaks down what those overnight temperatures could mean for emerged corn and soybeans, how to assess frost injury, and why patience is key before making any replant decisions. Learn the critical differences between corn and soybean growing points, what cosmetic vs. serious damage looks like, and how last week’s high winds may also be influencing what you’re seeing in the field.

Watch for:

• Frost thresholds for early-season crop damage

• Why corn may be more resilient than it looks

• Soybean growth stages and frost susceptibility

• How to evaluate brittle stems and discolored tissue

• Why waiting 4–5 days before assessing stand loss matters

• When to contact your local Pioneer agronomist or sales representative