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FEBRUARY 2023
Vol. 108 Issue 2

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6 days ago

Farmland Advantage is receiving a $445,000 grant from the federal government. The program, the “brainchild” of Invermere cattle rancher Dave Zehnder, provides compensation to farmers for their conservation efforts to protect BC’s grasslands, riparian areas and wildlife habitat. The funding from Environment and Climate Change Canada under the Species at Risk Partnerships on Agricultural Lands (SARPAL) and Priority Places programs, will be administered by the Investment Agriculture Foundation of BC. Rewarding farmers for enhancing riparian areas appeared in our March 2022 edition and you can view it at ... See MoreSee Less

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Rewarding farmers for enhancing riparian areas

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INVERMERE – Farmers and ranchers in the Columbia Valley will continue to see rewards for taking action to conserve and enhance important riparian areas on their farms. The Windermere District Farmer...
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2 weeks ago

A standing-room only crowd of more than 250 people attended a public hearing the Agricultural Land Commission hosted in Langley Monday night regarding a proposal to include 305 acres controlled by the federal government in the Agricultural Land Reserve. More than 76,000 people have signed an online petition asking municipal and provincial governments to protect the land from development, and for the federal government to grant a long-term lease to the Heppells. Read more in this morning's Farm News Update from Country Life in BC. conta.cc/3XYXw6k ... See MoreSee Less

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Your weekly farm news update

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The agricultural news source in British Columbia since 1915 January 25 2023 Surrey ALR inclusion cheered A standing-room only crowd of more than 250 people attended a public hearing the Agricultural L
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Mike Manion Pitt Meadows City Councillor

2 months ago

Christmas tree growers in BC are seeing strong demand this season and prices remain comparable to last year. But the number of tree farms has decreased dramatically over the past five years and the province will increasingly need to look elsewhere if it wants to meet local demand. More in this week's Farm News Update from Country Life in BC. ... See MoreSee Less

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Christmas trees in demand

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Christmas tree growers in BC are seeing strong demand, with high quality trees making it to market. “The market is good. We’ll probably outdo last year and last year was one of our best years…
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2 months ago

Another four poultry flocks in the Fraser Valley have tested positive for avian influenza over the weekend -- 15 in the last week alone. There are 60 farms currently under quarantine in BC, more than any other province in Canada and three times that of Alberta, which ranks second. Officials maintain the virus is being spread by dust and groundwater and not farm-to-farm transmission. No farms in the Interior have tested positive this fall. ... See MoreSee Less

Another four poultry flocks in the Fraser Valley have tested positive for avian influenza over the weekend -- 15 in the last week alone. There are 60 farms currently under quarantine in BC, more than any other province in Canada and three times that of Alberta, which ranks second. Officials maintain the virus is being spread by dust and groundwater and not farm-to-farm transmission. No farms in the Interior have tested positive this fall.
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Avian influenza virus can be killed by chlorine at no higher a concentration than is present in drinking water, so unless farms are using untreated groundwater in their barns I don't see how it could be a source of transmission. www.researchgate.net/publication/5594208_Chlorine_Inactivation_of_Highly_Pathogenic_Avian_Influen...

2 months ago

In a surprise move, Lana Popham -- hailed at the recent BC Dairy Industry Conference as a key ally of the agriculture sector -- has been replaced by Abbotsford-Mission MLA Pam Alexis as part of a cabinet overhaul today by new BC premier David Eby. Popham will now oversee Tourism, Arts, Culture and Sport. The two ministers worked closely together following the atmospheric river events last fall. ... See MoreSee Less

In a surprise move, Lana Popham -- hailed at the recent BC Dairy Industry Conference as a key ally of the agriculture sector -- has been replaced by Abbotsford-Mission MLA Pam Alexis as part of a cabinet overhaul today by new BC premier David Eby. Popham will now oversee Tourism, Arts, Culture and Sport. The two ministers worked closely together following the atmospheric river events last fall.Image attachment
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Goes to show how far-removed our current government is from the agricultural sector. To put someone in this position who has no farming background is a slap in the face to all of our hard-working producers.

Going to be a heck of a learning curve. Helping the agricultural community recover from the biggest natural disasters in history, handling the avian influenza outbreak that is threatening our poultry industry, dealing with a crisis in meat processing, managing ongoing threats from climate change, supporting producers who are facing unprecedented inflation in an industry with very slim margins to begin with..... to name a few of the challenges our new Minister will have to face all with one of the lowest budgets of any ministry. I wish her the best of luck but I hope she's got a lot of support around her.

Best of wishes in your new position

Congrats to Pam, cool to see a Fraser Valley based ag minister but also so sad to see Lana reassigned . I have no doubt she will do an amazing job in her new role.

Will be missed by #meiernation

Bryce Rashleigh

Nooooooo!

Lana did a shit job and now we have a minister with no farming background at all. Aren’t we lucky..

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Generational change for finances

January 18, 2023 byPeter Mitham

With one more hike to the Bank of Canada’s policy rate widely anticipated on January 25, higher interest rates are reshaping how farmers and ranchers approach their business.

BMO senior economist Robert Kavcic described the dramatic shift of four percentage points in interest rates over the past year as a generational event that’s forcing a repricing of assets across the board. The change is so sharp that the chances of a mild recession are high.

“This is a pretty strong, pretty reliable signal that we have to brace for some economic weakness ahead,” he says. “It’s really hard to imagine an economy that can absorb a generationally abrupt tightening of monetary policy without some kind of economic damage.”

Kavcic expects higher borrowing costs to last until 2024.

“Rate cuts are going to start to be a 2024 story, simply because I think policymakers want to err on the side of leaving rates higher for longer and making sure they crack that inflation nut rather than backing off too soon,” he explains.

Kavcic expects interest rates to settle back into the 2% to 3% range once the current surge is over. The current Bank of Canada Policy rate is 4.25%, with commercial loans running about two percentage points higher.

Many farms have yet to feel the real pain from higher borrowing costs, however, as the rates primarily affect variable-rate financings as well as new debt.

“The high rates haven’t even funnelled through the system yet,” says Karen Taylor, director of corporate finance, agriculture and agribusiness with BMO in Abbotsford. “This is just starting, so it’ll be interesting to see how long this lag period is.”

Some older farmers are taking note, however, and changing up their succession plans. Rising capital costs are prompting some to consider selling rather than hand the farm onto a new generation, which would be saddled with higher costs in a low-margin environment.

“That is being discussed because now, if your facilities are old (and sometimes with succession planning that is the case, that facilities need to be rebuilt), now you’re talking about 6% money rather than 3% money,” Taylor says. “If someone takes over the farm, they’re also thinking about where can I grow, how do I buy the neighbour now that I have to pay 6% interest versus 3% interest? … The interest rate factor is definitely impacting succession planning conversations.”

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