Ever since the great recession of 2008, interest rates have been 'abnormally' low. Although there has been noise about rising interest rates, the economic argument has been weak. But the economy is getting stronger, and along with that the argument to raise interest rates is also getting stronger. In this interview RealAg Radio host Shaun... Read More
Category: Finance
There is not a farm in North America that would refuse a major influx of cash if it was awarded to them. There's cash to get you by, and then there is generational, life-altering cash. This week, the United States Powerball jackpot reached $1.5 billion, and the winning ticket was printed in South Carolina. It... Read More
Farmers are all about efficiency and productivity as they keep their eyes on profitability. It's a real accomplishment to make sure you have the right size of equipment for the task at hand. With the cost of machinery and rising interest rates in 2018, this calculation has become even more critical for managing capital purchases... Read More
It seems like a foregone conclusion, but the Bank of Canada is expected to raise interest rates Wednesday. The market is expecting a 25 basis point hike to 1.75%, which would be the fifth increase since July, 2017. Bank of Canada Governor Stephen Poloz will address the Canadian economy that's been tempered in the past... Read More
Capital assets don't buy groceries. If this statement makes you scratch your head a little, you're likely the older generation on the farm. If you read it and think, "Don't I know it" you might be the in-coming generation, and very likely frustrated by the lack of clarity on how the farm's equity and income... Read More
Citing a strong industry, but a shrinking demographic, BMO Bank of Montreal has introduced its new loan program for Canadian farmers 35 years or younger. The BMO Young Farmer program offers is aimed at helping both the person who's already in the industry and for those who are choosing to get into agriculture, with loans... Read More
Although not a common practice for most farmers, a lawyer is urging more farmers to consider consulting their legal advisor prior to purchasing pricey farm equipment. This advice comes after one Saskatchewan farm lost their legal battle and appeal against an ag dealership. In this specific case, James and Merrylyne Coward claimed the dealership they... Read More
Believe it or not, the farm transition can actually be a joyful journey. But that can only happen once three things are established: Is the business going to continue? When would you like it to continue? (starting now, or with a reading of the will) Who will lead the business in the next phase? That's... Read More
On Friday, the Canadian dollar rose nearly a cent relative to the U.S. dollar. The sudden ‘strength’ came from a couple of sources. First, more confidence that the Bank of Canada will continue the path gradual rate hikes; second, a weaker U.S. Dollar. Recent Canadian economic data warrants the Bank’s outlook for gradual rate increases.... Read More
The Bank of Canada increased the target interest rate today by 0.25%, to 1.5%. This is now the fourth rate hike, amounting to 1%, since the Bank hiked rates for the first time since 2007 a year ago. Over the last year, the Bank of Canada has matched the aggressiveness of the U.S. Federal Reserve,... Read More