Business & Policy
Is Canadian Agriculture Viable?
By Farm Focus
Jan. 5, 2012 -Canadians are having severe trouble balancing their debt and income ratio, says a University of Guelph Professor.
According to an article in Farm Focus, Dr. George Brinkman, a University of Guelph Professor Emeritus of Agricultural and Resource Economics, told the Nova Scotia Federation of Agriculture that Canadians have an debt-to-income ratio of approximetely 16-1.
"Practice survival management, if necessary," says Dr. Brinkman. If a farmer cannot pay back the debt from the land he owns, debt will accrue at a very large rate, especially with newly purchased land.
"The good news is we probably have 3-5 years to do something about these factors before interest rates rise 3-4 per cent. Watch interest rates because they are the single most critical thing to affect Canadian agriculture in the next few years."
For the complete article, click here.