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Interest rate increase could slow demand for farmland

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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WEBINAR: Protecting Sm1: New Research on Wheat Midge Resistance with Dr. Tyler Wist

Video: WEBINAR: Protecting Sm1: New Research on Wheat Midge Resistance with Dr. Tyler Wist

Watch Dr. Tyler Wist, Research Scientist with Agriculture and Agri-Food Canada, Saskatoon as he shared insights into his funded wheat research project under the Sustainable Canadian Agriculture Partnership. This funded research targets wheat midge and its parasitoids across the western Canadian Prairies. Funding from a previous CAP resulted in the discovery of a mechanism behind oviposition deterrence (preventing insects from laying eggs) in several wheat varieties. Through ongoing surveying, Dr. Wist and his team are determining what factors impact where wheat midge lay eggs and what varieties have better genetic response to wheat midge pressure. Dr. Wist shared how his research will dig into continued breeding initiatives, and what additional control methods are being produced beyond the Sm1 gene.

•Funding Partners:

•Sustainable Canadian Agriculture Partnership

•Government of Canada

•Alberta Grains

•Canadian Field Crop Research Alliance

•Manitoba Crop Alliance

•Saskatchewan Wheat Development Commission

•Western Grains Research Foundation