Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFFO Commentary: The Positive and Negative Roles of Farm Debt

By John Clement
January 14, 2011

Farm debt can be a contentious issue in farm circles. Used properly, and with clear sailing on the horizon, debt is a very practical tool for building a business. However, used improperly, or accompanied by stormy economic times, debt can be a millstone that strangles a business and limits future options.

The Christian Farmers Federation of Ontario is currently taking some time to re-examine the role of debt within farming businesses. Many of our members have become concerned for themselves, and others, regarding the place of debt due to several factors. While being supportive of entrepreneurship and the necessary commitment to manageable debt that goes along with it, many also remember turbulent times in recent decades and accompanying fluctuations in interest rates and land values.

Some of the reasons for our members’ concerns include the following:

  • Ontario farmers are some of the most heavily indebted farmers in North America.
  • There are indicators that interest rates could soon be on the rise
  • It’s become increasingly common for farmers to operate on an interest-only basis
  • Land prices and land rental rates continue to escalate at what many would view as unsustainable levels.

There are fears that this set of circumstances may be a recipe for disaster in the next several years. In addition, there are several admonitions in the Christian scriptures that caution about the perils created by uncontrolled debt. Accordingly, the CFFO is examining both the positive and negative aspects of debt in farming businesses at its policy committee meetings. We’re hoping that a pooling of research and experience will yield some proactive guidelines that we can eventually share with the larger farming community.


I think that the concerns of our membership are well placed. It’s not a nice picture to see hard-working families do everything “right” in their farming operations and then be taken down by fluctuations in financial markets. I’ve lived long enough to remember an era of farm gate defenses against creditors, “penny” auctions of assets, farm debt reconsideration processes, and farm families leaving their businesses and homes. Expressing caution, while being proactive in using and managing debt, just makes a lot of sense.



John Clement is the General Manager of the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham, Ontario and is archived on the CFFO website: www.christianfarmers.org. CFFO is supported by 4,200 family farmers across Ontario.

Views: 43

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Soybean Fungicide Decisions

As soybean crops move into flowering, questions are sure to be raised about whether fungicide applications are needed. In anticipation, let’s take a closer look at the potential disease threats and what Manitoba On-Farm Network research has told us. What Should We Be Concerned About? Foliar diseases infecting soybeans in Manitoba typically occur at low severity levels and are not expected to impact yield most years. These usually include bacterial blight, downy mildew and Septoria brown spot. Stem diseases generally have a greater impact on yield. White mould: infections begin at nodes along the main stem. Wilted plants may be spotted from afar, within a humid canopy may find white mycelial growth and black sclerotia bodies later in the season. This disease is the main target of fungicide applications. Cool, wet conditions throughout July and August favour white mould. For every 10% increase in the percent of plants infected with white mould, 2-5 bu/ac of yield are lost in soybeans.

Fungicide Decision Tool for Managing Mycosphaerella Blight in Field Peas

When your peas have reached V10 (10th node stage), it is an ideal time to start scouting each field to evaluate if a fungicide application to manage Mycosphaerella blight is warranted. Continue scouting for symptoms from V10 (10th true node) to R2 (beginning bloom), during mid-June to late July. Mycosphaerella (Ascochyta) blight is the most widespread and economically damaging foliar disease of Manitoba field peas. Peas are the single host crop of Mycosphaerella but it can be managed by foliar fungicide. This pathogen can be stubble-, air-, soil- and seed-borne. Spores can travel long distances by air, meaning there is a disease risk even in fields where peas have not been grown previously. The impact of disease severity on yield will depend on how early the disease sets in and how quickly it progresses into the upper crop canopy. Early infections during the bloom to early/mid-pod stages cause the most damage if left untreated. Use this fungicide decision worksheet when scouting to

Manitoba pork, canola producers hold steady amid heavy tariffs

A slab of back bacon from Natural Raised Pork comes with a waitlist. Ian Smith points to tariffs. Since the United States placed levies on imports from Canada, Manitobans have increasingly been calling Smith about his farm near Argyle, some 40 kilometres northwest of Winnipeg. “There’s more people wanting to support local and I’m one of few people that do what I’m doing,” said Smith, 62. He estimates 90 per cent of his pork products are bought by Manitoba households; the latter goes to a packing plant. Last year, it was a 50-50 split. Smith works alone, hustling to meet the four-to-six week waitlist that’s accumulated. He keeps hundreds of feeder pigs and a couple dozen sows; it’s a relatively small operation, he noted. “If there’s any mistakes to be made, there’s only one person to blame and that’s me,” he said with a laugh. Smith doesn’t export to China — so he’s shielded from that nation’s levies still hanging over the Canadian industry.

KAP Welcomes Appointment of New U.S. Trade Representative

Keystone Agricultural Producers (KAP) welcomes the appointment of Richard Madan as Manitoba’s new trade representative to the United States. “We commend Premier Kinew and Minister Moses for making Manitoba’s voice a priority in Washington, D.C.,” said KAP President Jill Verwey. “We look forward to working with Mr. Madan to advance the interests of Manitoba farmers and the agricultural industry, ensuring these interests are at the forefront of his work as he forges stronger relationships with American policymakers and trade officials.” Agriculture is an important part of Manitoba’s economy, with $4.29 billion in agri-food exports to the U.S. alone in 2024, and KAP sees the new presence in Washington as instrumental in fostering strategic relationships with key states that are important to our trade interests. “The U.S. is Manitoba’s largest agri-food export destination and is one of Manitoba’s key trading partners on the international stage,” added KAP General Manager Colin Hornby. “

2025 Annual General Meeting

On Wednesday, June 18th, the Ontario Farmland Trust hosted its Annual General Meeting. The meeting was held hybrid again this year, with members and friends joining both virtually and in person.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service