Source: Jonathan Guignard, Global News, November 21, 2018
According to a BMO Capital Markets’ special report published on Oct.31, the drop of the Canadian dollar has “spared farmers the type of distress seen south of the border.”
Canada has seen an increase of 16 per cent in crop revenue since 2012, while the United States has seen a 14 per cent decline.
According to Aaron Goertzen, vice-president of BMO Capital Markets and the senior economist who wrote the report, it’s a reflection of a 23 per cent drop in the loonie over the same period.
“As far as the Canadian dollar goes with commodity prices facing some challenges and the Bank of Canada running behind the fed, we do expect a continued weakness in the Canadian dollar. That is good news for Canadian agriculture,” Goertzen said.
