Ontario Agriculture

The network for agriculture in Ontario, Canada

http://www.vancouversun.com/sports/Bank+under+pressure+hike+rates/2... 

Pressure on the Bank of Canada to move early on raising interest rates mounted Monday after fourth-quarter data on gross domestic product suggested the economy is roaring its way out of the recession after recording the fastest pace of growth in nearly a decade.

The central bank could provide hints of a change today when it releases its latest statement on rates. Its plan for almost a year has been to conditionally keep its benchmark rate at 0.25 per cent until at least July in an effort to pump up economic growth after the recession.

Data from Statistics Canada suggested the emergency-level rates have worked their magic, perhaps faster and better than anticipated.

The economy expanded five per cent in the final three months of 2009, blasting past market expectations for a four-per-cent gain -- and the central bank's 3.3 per cent forecast -- and setting the stage for robust growth this quarter. It is also the fastest pace of quarterly economic growth since late 2000. Further, the data were solid almost across the board, with personal consumption and net trade contributing to the performance. Third-quarter data were also revised upward, with growth of 0.9 per cent as opposed to the original 0.4-per-cent reading.

This comes on top of January inflation data that indicated price increases had moved closer to the central bank's two-per-cent target earlier than anticipated.
---
The big question I know for us - is when to pull the trigger and lock in our loans that are variable right now -- into fixed.

Anyone else is this situation? What are your plans?

Views: 40

Reply to This

Replies to This Discussion

I have looked at this case many times. My findings are that over a 30 year period the variable always outperforms the fixed rate. I also work hard to overpay it whenever I can, as you get the principal down the risk of higher interest rates drops significantly.

I suspect inflation will start to run up. The price of oil has again risen, this is the real benchmark for everything. If the government really wanted to help they would consider a price ceiling for fuel.
How Changing Interest Rates Will Affect Ag

Video wiith analyst Philip Shaw (http://philipshaw.ca/) at the Western Fair Farm Show about how he thinks interest rates will affect agriculture markets in the medium term. WATCH VIDEO

Reply to Discussion

RSS

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

USDA FAS Projects Canada All What Output at 33.7 Million Tonnes

The USDA’s Foreign Agricultural Service (FAS) is projecting an increase in Canadian all wheat production this year, although still less than expected by Agriculture Canada. A FAS report Wednesday pegged national all wheat output for 2024 at 33.7 million tonnes. That is up 5.4% on the year but roughly 900,000 below Ag Canada’s new-crop production estimate of just under 34.6 million. The FAS forecast is based on Statistics Canada’s April acreage report – which pegged intended all wheat area at just over 27 million acres – a rebound in yields to the five-year average, and FAS’s own estimate of winter wheat area remaining in the spring. Durum production is seen by FAS at 5.5 million tonnes, a year-over-year increase of 36% but also below the Ag Canada projection of 5.65 million, while spring wheat output is projected at 25.25 million, a 2% increase on the year. Winter wheat production is forecast by FAS at 2.9 million tonnes, which would be down modestly from 3.14 million in 2023.

Funding Available to Manitoba Producers for Livestock Predation Prevention

Manitoba and the federal government have announced $500,000 in funding to help producers in the province protect their livestock from predator attacks. A news release Thursday said the money will go toward assisting producers with the purchase of equipment, livestock guardian dogs, and constructing predator-resistant fencing under the province’s Livestock Predation Prevention Program. Wildlife predation of livestock is a significant problem for Manitoba producers, with over 2,000 livestock lost each year. The Livestock Predation Prevention Program provides two funding streams for producers: Pre-approved Livestock Predation Prevention Equipment and Guardian Dogs will allow eligible applicants to purchase solar foxlights, electronet, fladry and livestock guardian dogs. Predator-Resistant Fence Construction will allow eligible applicants to apply for funding to support construction of eligible fencing that deters predators from entering calving and lambing areas, pastures, exte

Pea Breeder Honoured with Pulse Industry Innovator Award

The Alberta Pulse Growers (APG) selected Dr. Dengjin (DJ) Bing, who continues to produce strong field pea varieties with traits desired by farmers, as the winner of the tenth annual Alberta Pulse Industry Innovator Award. “Each year, APG recognizes a person or organization whose progressive thinking and tireless efforts helped build Alberta’s pulse industry into the flourishing sector that it is today,” said APG Chair Shane Strydhorst. “Farmers recognize Dr. Bing’s research contributions that have demonstrated success and advanced the growth of pulses in their businesses. The strength, consistency and performance of the field pea varieties released from Dr. Bing’s program have regularly provided, and continue to provide, excellent returns to the farm gate.” Alberta pulse farmers and distinguished guests were on hand to celebrate Bing and his achievements at an award luncheon during recent APG Joint Director-Advisor meetings in Lethbridge. Strydhorst noted that the strength, consiste

Bunge and Viterra respond to Competition Bureau Report

Bunge and Viterra are pleased that the Canadian Competition Bureau has concluded its review of Bunge’s proposed acquisition of Viterra and issued its non-binding advisory report to the Minister of Transport. We appreciate the Bureau’s time and effort in reviewing the transaction.

Canada and Manitoba governments support Squeal on Pigs

Brandon, Manitoba – Agriculture and Agri-Food Canada

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service