Agriculture and Agri-Food Canada reports a lower Canadian dollar and lower fuel prices are resulting in strong farm cash receipts.
On Friday Agriculture and Agri-Food Canada released its 2016 Canadian Agricultural Outlook.
Rodney Meyer, the Director of the Farm Economic Analysis Division, says 2015 and 2016 should be among the most successful years in the history of Canadian Agriculture.
Rodney Meyer-Agriculture and Agri-Food Canada:
We expect that net cash income in 2015 will reach 15 billion dollars which is about 6 percent above the record set in 2014.
In 2016 we forecast the sector will register a modest decline from the record level of 2015 but income will still remain historically high at a level of 13,6 billion dollars.
While the bottom line performance of the Canadian agriculture sector is expected to improve again in 2015 and 2016 it should be noted that we have seen signs of weakness in major world commodity markets.
Fundamentals in world commodity markets deteriorated considerably during 2015 driven by stronger supplies of most major commodities.
Prices in U.S. dollars for most grains and oilseeds, beef, pork and milk weakened over the course of 2015 and are expected to register modest declines in 2016.
Source : Farmscape