Farm Credit Canada surveyed producers back in July on Risk Management and says the majority have strategies in place.
Craig Klemmer, FCC’s Principal Agricultural Economist says the survey showed 67% of farm operators reported a high level of concern for marketing risk, while 60% were concerned with production risk and 53% with financial risks.
“We’re constantly concerned by what the markets are doing, and what prices we’re going to see for our production. So, no big surprise that marketing risk tops the board.”
Klemmer says the good news is most producers are in a solid financial position to withstand short-term impacts on their business.
Marketing risks – like price and market access - were most prominent among beef, grains and oilseed sector producers at 74%, followed by those in the fruit, vegetable and greenhouse sector at 58% and the supply managed sectors of dairy at 55% and poultry at 53%.
Ensuring there is sufficient working capital was the most prominent financial concern across all sectors, followed by unfavourable changes in interest rates and meeting debt payment obligations.Click here to see more...