Survey: 40% Of Canadian Producers Likely To Purchase New Equipment

Forty-two percent of agricultural producers, who responded to a recent Farm Credit Canada (FCC) Vision Panel survey, plan to increase spending on farm equipment in 2010, AgriMarketing reports.

The FCC’s Vision Panel Survey: Impact of Economic Conditions on Canadian Producers and AgriBusiness and Farm operations was completed in November 2009 by over 900 producers across the country.

While 42% will spend more on equipment, 45% are not planning any change in spending and 14% stated they will spend less. Quebec producers (21%) are significantly more likely to decrease spending on equipment than producers from Alberta (8%), British Columbia (6%) and Ontario (9%).

The survey also asked primary producers about equipment ownership. Nearly three-quarters of respondents (74%) own their equipment and 14% own some equipment and rent the rest. Over one-third of producers (37%) share one or more pieces of equipment with a neighbor. Producers from Quebec (48%) are significantly more likely to do this than producers from other provinces: Alberta (32%), British Columbia (25%), Saskatchewan (33%) and the Atlantic provinces (29%).

“The average amount of an equipment loan at FCC has increased in the past two years from approximately $70,000 to $76,000,” said Darren Bly, FCC Vice-President, Partners and Channels. “Sharing equipment may be a good business decision as the cost of equipment increases and producers seek alternative ways to save. FCC has responded by creating a leasing program for farm equipment.”