The chief economist with Farm Credit Canada (FCC) says we are seeing a shift in the ag cycle.

J.P. Gervais explains that instead of witnessing continued strong growth in farm cash receipts, we may see farm income plateau for a while.

He notes profit margins will be tighter but still positive, adding producers will need to focus on key areas to remain profitable.

"If we're going to grow revenues, we're going to have to grow production and we're going to have to grow yields. We're going to have to be more productive," explained Gervais. "Short-term is all about managing costs and being efficient."

He added that while the macroeconomic outlook may appear depressing, there are still a number of positives to focus on. Those include low interest rates, the low Canadian dollar, and strong demand from emerging markets.

Gervais was speaking in Manitoba this week as part of FCC's Ag Outlook 2017.