Canadian Ag Will Remain Strong in 2015

Canadian agriculture is more resilient, and ready to take on more new opportunities, than ever before, according to J.P. Gervais, Farm Credit Canada’s (FCC) chief agricultural economist, reported swbooster.com.

Beef and pork were the main drivers behind the 2014 increase—good news for producers who saw unprecedented high prices for cattle and hogs. The markets suggest cattle will trend slightly higher in 2015, while hog prices will ease from recent highs.

Gervais believes Canada will continue to increase oilseed and red meat exports to China, and a weak Canadian dollar will enable producers to increase exports to the U.S. He predicts low oil prices will continue to put downward pressure on the Canadian dollar, which means producers can expect strong returns throughout 2015.

However, Canada’s agriculture labor market is expected to remain tight in 2015 as the number of available workers continues to decline. Farm wages increased an average of more than 3% per year over the last decade. This exceeded wage increases in most other parts of the economy and is likely to continue in 2015.