The Canadian dollar is expected to be one of the key economic drivers for the agri-food supply chain in 2017.
J.P. Gervais, Farm Credit Canada’s chief agricultural economist explains.
"We believe that with oil prices remaining fairly stable, and with interest rates not moving up too fast, although we do expect that borrowing costs for producers is going to go up...all in all we expect the Canadian dollar to average 75 cents for 2017."
He says a 75 cent loonie is positive for Canadian agriculture as it improves our ability to sell into foreign markets which is important to the global economy and our agricultural exports.
On the flip side, a lower Canadian dollar also has an impact on producer inputs.