Why off-farm income remains vital to the farm economy

Jul 15, 2020

Off-farm income is an essential component of nearly all Canadian farm operations. According to Statistics Canada, over 99% of farm families report some source of off-farm income, with four out of five reporting employment income. Off-farm jobs provide stability to family income and mitigate the variability in farming income. With the June unemployment rate at 12.3% and the lower number of hours worked, the current economic downturn will negatively influence the incomes of farm families.

The Great Lockdown has severe consequences on employment

This recession is worse than others in terms of jobs lost Employment in Canada declined over 15% from February to April and rebounded with strong employment gains in May and June. As a percent of the peak observed before the start of the recession, overall employment is still well below the lows experienced in the prior three recessions.

Click here to see more...

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!