Farms.com Home   News

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."

Click here to see more...

Trending Video

Why the Fertilizer Crisis Won’t End When the Iran War Does

Video: Why the Fertilizer Crisis Won’t End When the Iran War Does

The fertilizer crisis didn’t start with war — it revealed a system already under strain.

Seed World U.S. Editor Aimee Nielson breaks down what’s really happening in global fertilizer markets and why the impact on farmers may last far longer than current headlines suggest. Featuring insights from global fertilizer expert Melih Keyman and industry leaders Chris Abbott and Chris Turner, this conversation explores:

Why fertilizer supply was already tight before geopolitical disruption

What the Strait of Hormuz and global trade routes mean for input availability

How rising nitrogen prices are crushing farmer margins

Why this crisis could affect seed choices, crop mix and acreage decisions

The hidden risks around phosphate and sulfur supply

Why experts say this situation may get worse before it gets better

Even if tensions ease, the underlying issues — supply constraints, investment gaps and purchasing behavior — are still in play.

Watch to understand what this means for farmers, the seed industry and the future of global food production.