Canada’s total outstanding farm debt continued to climb in 2016, reaching $96 Billion as of December 31st.

That’s a 7.3% increase over 2015 levels, according to Statistics Canada.

JP Gervais is the Chief Agricultural Economist with Farm Credit Canada (FCC).

He notes there has been concern that farmers won't be able to sustain the increase.

"I think the bigger question here is to ask 'Are we making the right kind of investments?'" commented Gervais. "If we're making the right kind of investments, then things should take care of themselves and especially 'Are we making the investments that allow us to grow farm income?', and I think the answer is 'yes'."

Gervais notes that while farmer debt climbed, the cost of borrowing steadily declined in 2016.

He said maintaining a strong balance sheet is important, adding Canada's farm debt-to-asset ratio remains favourable compared to historical averages.