Farm debt is growing but Ontario farmers are in a good place to handle it, according to the Assistant Minister with Agriculture and Agri-Food Canada.
Tom Rosser says the increasing debt levels seen in agriculture are indicative of farmers using debt as a tool to increase their competitiveness and grow. Producer's ability to manage their debt depends on their income, and given increases in farm incomes and low interest rates, farms are generally in a very healthy position to service their debt.
Michael Hoffort, the President and CEO of Farm Credit Canada, told the committee that rising farmland prices are helping farm asset appreciation keep pace with farm debt levels.
According to Statistics Canada, total outstanding Canadian farm debt was an astounding $91.8-billion in 2015.
