Gervais says just in Saskatchewan, for example, we’ve been able to grow gross farm income by more than $600 million a year for ten years.
“Of course, that has actually fed into asset values going up and we’ve had some very strong appreciation rates for farm assets, especially farmland and with that farm debt has grown. So, with that, I think now we have to be a little more cautious."
He suggests producers take a second look and see where they stand in terms of financial risk in their operation, especially with borrowing costs climbing.
Gervais expects margins will be tighter in 2018-19 adding that farm asset values, farmland in particular, in Saskatchewan will be more stable or grow at a more moderate pace.
Source : Discoverestevan