Farm Credit Canada's chief agricultural economist says now is a good time for farmers to review their financial strategy.
J.P. Gervais made the comments in response to the Bank of Canada increasing its overnight interest rate to 0.75 per cent.
He explained how the increase might affect farmers.
“This increase is not significant enough for most farmers and agribusiness operators to revise their business strategies, but I recommend they consider reviewing their long-term financing options with the expectation that this increase could be the beginning of a slow and gradual increase,” Gervais said. “It is prudent in the current environment for producers and agribusinesses to ensure they can face a higher interest rate. This will ensure long-term viability if interest rates continue to climb.”
This week's interest rate hike was the first since 2010.