GROW

Trends Impacting Farmers
and Agriculture in 2016
By Joe Dales,
Vice President
Farms.com Ltd.
24
As we start 2016, there seems to be more uncertainty in the future than we have felt the past few years. It is
difficult to watch the news and not become concerned about how the year will unfold. So as we plan for the
year ahead there are a few major factors that should be considered.
1. Farm Business Management and Planning: The importance of planning increases when we are in a
tight margin period, we should reserve time to write down a plan and review the finances for the year.
2. Lower Grain Prices & Lower Livestock Prices: Corn, soybean and wheat futures prices continued to
slide lower compared to last year. Proactive grain marketing and growing high yielding crops are
important to success. Beef and pork producers will have to manage futures prices and lower feed
costs.
3. Lower Canadian Dollar: The rapid drop in the Canadian Dollar US Exchange rate is not all bad as Ontario
farmers should see a stronger grain basis. The negative impact will be higher costs for imported goods
such as farm machinery and fertilizer.
4. Threat of Rising Interest Rates. The U.S. Fed has begun to slowly increase interest rates so farmers need
to consider managing the financial risk higher interest expenses bring.
5. Reducing Costs Using Technology on the Farm. New technology and data management have the
potential to reduce costs so an innovation strategy is always important for the business.
6. Consumers and Political Influence on Farm Regulations and Policies. The Ontario Government’s new
regulations on Neonic seed treatments is an example on why farmers need to continue to spend time
positively promoting agriculture and help educate consumers and politicians where possible.
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