Farmscape for September 15, 2020
The Chief Agricultural Economist with Farm Credit Canada suggests a moderate increase in the average value of farmland across Canada demonstrates the resilience of Canadian agriculture in the face of the impacts of COVIID-19.
Farm Credit Canada's just released farmland values mid-year review shows the national average for farmland values increased an average of 3.7 per cent for the first half this year, in line with mid-year results over the past five years.
J.P. Gervais, the Chief Agricultural Economist with Farm Credit Canada, says given the global economic situation during the first half of 2020, Canada’s farmland market is showing remarkable resilience in the face of adversity.
Clip-J.P. Gervais-Farm Credit Canada:
It shows that most people in the industry are quite optimistic about the future of the industry.
There have been some significant disruptions in some supply chains, livestock for the most part.
The hog supply chains as well as the cattle supply chains, they've been hit hard and that's been having an impact for sure on the revenues of producers and farm operators if you think of hogs and cattle more specifically.
But, overall, when you look at grains and oilseeds, looking at where prices are right now, looking at the size of the crops, the 2020 crop, I think the outlook for crops remains positive, so a bit of a mixed outlook here.
We've had some really difficult months when it comes to livestock supply chains but on the crops side, especially for grains and oilseeds and pulses, exports have been above last year, prices are moving up, we've got a good crop coming in some there's a little bit of optimism in the industry because that despite the COVID-19 prices and the damaging impact it has had on the supply chain.
From a crops standpoint I think things are positive in terms of an outlook.
Gervais says, despite the challenges faced by the livestock sector, the African Swine Fever outbreak in China and other parts of the world has strengthened the outlook for export demand for Canadian red meat.
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