By Connor Lynch
Ontario farmers are going to need strong crop prices if they want farm cash receipts to grow this year.
According to an analysis by ag lender Farm Credit Canada and its chief economist J.P. Gervais, farmers need better crop prices or more volume to make up for declining farm cash receipts. From first quarter 2017 to first quarter 2018, Ontario farm cash receipts dropped by an average 2 per cent.
Lately prices for corn and wheat have started to climb with concern about how dry the U.S. is, Gervais said.
Barring a major trade upset or major production problems, strong demand for grains and oilseeds should see farmers through any temporary issues, Gervais said. Soybeans have slipped on the Chicago Board of Trade as the U.S.-China trade war escalated. Brazil, meanwhile, made gains on soybean prices.
Said Gervais: As long as this year’s production is similar to last year’s, receipts should increase slightly.