Opinion: Not all interest rate increases are equal

Opinion: Not all interest rate increases are equal

Rising interest rates are disruptive. They can hit cash flow budgets and create the need to adjust the level and mix of short- and long-term liabilities. Or they can shift the demand for farmland, which can impact farm asset values. The bottom line is that interest rates – and changes to those interest rates –

Don’t expect big moves from the loonie in 2018, analysts say.

Loonie to stay range bound in 2018

Higher oil prices and an expected interest rate rise are keeping the Canuck buck aloft

Following the Canadian dollar’s recent rally it should stay range bound, according to financial analysts. “It’s a little bit of an exciting story for the loonie. We’re just kind of seeing it range bound but that’s sort of what the fundamentals are telling us,” said Brian DePratto, senior economist with TD Economics. Over the course


Cows herded in to holding pen

Rising Chicago futures support Manitoba values

Availability of trucks may soon become a market issue

Cattle prices rose at Manitoba auction marts during the week ended Oct. 27, as futures prices on the Chicago Mercantile Exchange helped push up sales. “Just about every day it’s been positive (on the Chicago Mercantile Exchange) and that’s what is holding the market probably together on the feeder cattle,” said Robin Hill with Heartland

U.S. biofuel trade fight benefits canola futures

U.S. biofuel trade fight benefits canola futures

ICE Futures Canada pulls the plug on barley and wheat

ICE Futures Canada canola contracts climbed to their highest levels in more than two months during the week ended Oct. 27, as declines in the Canadian dollar and gains in U.S. soyoil provided double the support. The currency was the biggest driver, falling below 78 U.S. cents for the first time since July. The drop


Comment: The loudest voices against tax reform are not neutral

Almost absent in the debate about proposed Canadian changes are any voices defending 
the idea of tax fairness

Federal Finance Minister Bill Morneau’s proposals for tightening tax breaks associated with private companies is generating several kinds of response on social media and in mainstream media. The most evident is an impressive deluge of evidence-free rhetoric claiming that the proposals are an attack on everything from the middle class to maternity leave for female

Farmer in wheat field

Opinion: Proposed tax changes for corporations poorly structured

The current proposals will stifle business and create unfairness

In July the prime minister of Canada and the federal finance minister introduced proposals that, if enacted, will fundamentally change how small business in Canada operates. Since that unveiling of proposals, debate on the merits of each point has been impassioned. Debate has since polarized along ideological dogma. Canadian society must decide where they wish


Tax changes set for this fall are likely to considerably impact many Canadian farmers.

Editorial: The taxman cometh

Canadian farmers could soon be swept up in a looming taxation crackdown. The Trudeau government has promised to lower the boom on what it characterizes as the abuse of private corporations by high-income individuals to avoid taxation. Doctors have been especially vocal in their condemnation of the move, saying they have forgone fee increases in

Terry Betker, CEO and president of Backswath Management Inc., advises farmers on managing interest rate risk.

Looking for a loan? Add in interest rate risk when deciding to borrow

With Canada enjoying some of the lowest borrowing costs on record, it might be time to consider that expansion, but how do you avoid the landmines if interest rate shifts appear on the horizon?

Working on your farm management skills is like exercising… it pays big benefits, but it’s easy to push it off for another day. Only one-third of producers use business advisers or risk management tools, and fewer still do HR, succession, or strategic planning. To help make your farm more profitable (and your life more enjoyable),


Canadian dollar – monthly average 1971-2016.

Separating your commodity and currency decisions

Currency fluctuations can be almost as significant as changing prices for your farm products

Since we live in Canada, while almost all commodities are traded around the world in U.S. dollars, the Canadian dollar/U.S. dollar exchange rate will have an impact on your farm revenues. And since it directly or indirectly affects almost 100 per cent of your revenues, the Canadian dollar/U.S. dollar exchange rate can and should be

Big data and agriculture markets: Part 3

Big data and agriculture markets: Part 3

Options-based strategies can help get more out of a chaotic market filled with randomness and unpredictability

The previous article in this three-part series addressed some of the main myths and misperceptions of commodity hedging. This final segment looks at some practical solutions for improving farm marketing and commodity revenue protection. In David Orrell’s book Apollo’s Arrow: The Science of Prediction and the Future of Everything, he writes about the unpredictability and