For many years, the financial stability of Canadian farmers has been the envy of their American counterparts, but rising costs, drought and a dispute with China are changing everything.
Last year, Canadian farmers' net income fell, in March 2019, followed by a halt in China's purchases of canola, Canada's largest crop.
All this led to the fact that Canadian farmers are forced to seek government assistance in order to prevent their collapse, lenders extend the term for loans, and sales of agricultural equipment dealers fall.
Canadian farmers' net income, due to rising debt and labor costs, fell 21% last year to $ 11.6 billion ($ 8.6 billion), the lowest level of income in seven years.
Farmers owe a record $ 106 billion. According to a representative of the Federal Department of Agriculture, payments to farmers under the AgriStable federal aid program grew by 37% year on year.
“Farmers are extremely stressed out,” said Wendy MacDonald, agronomist at Manitoba Farm Consultancy 360 AG. However, there is still hope in Ottawa that farmers will be able to withstand a short-term decline.
“They had many years before the recession with a significant increase. I’m still optimistic, ”said Canadian Minister of Agriculture Marie-Claude Bebo.
