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September 2023
Vol. 109 Issue 9

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1 day ago

The Great Spallumcheen Farm & Food Festival and North Okanagan Plowing Match is happening this Sunday, September 24 from 10-3 at Fieldstone Organics, 4851 Schubert Rd, Armstrong. The outdoor festival features tastings and a market brimming with local food and beverage vendors, a horse and tractor plowing competition and vintage farm equipment displays. ... See MoreSee Less

The Great Spallumcheen Farm & Food Festival and North Okanagan Plowing Match is happening this Sunday, September 24 from 10-3 at Fieldstone Organics, 4851 Schubert Rd, Armstrong. The outdoor festival features tastings and a market brimming with local food and beverage vendors, a horse and tractor plowing competition and vintage farm equipment displays.
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Patti 😊

3 days ago

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3 days ago

The top five issues the Canadian Centre for Food Integrity identified in a recent survey were the cost of food, inflation, the cost of energy, keeping healthy food affordable and the Canadian economy. “We are seeing that environmental concerns are not in the top 10,” says Amy Peck, manager of the Canadian Cattle Association’s public and stakeholder engagement program. “If you are concerned about being able to afford to feed your family, the environment becomes less important.” ... See MoreSee Less

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Ranchers get the backstory on public perception

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VERNON – Ranchers might be concerned about how the public sees their industry, but a producer-funded team at the Canadian Cattle Association has their back. Amy Peck, manager of the Canadian Cattle...
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4 days ago

BC Tree Fruit Co-op has sold its Lake Country packing house as part of its long-term plan to consolidate operations. The sale, to an undisclosed buyer, closed on August 31, 2023 for $15.8 million. ... See MoreSee Less

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Lake Country packing house sold

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BC Tree Fruit Co-op has sold its Lake Country packing house as part of its long-term plan to consolidate operations. The sale, to an undisclosed buyer, closed on August 31, 2023 for $15.8 million.
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Who bought it ffs ?

Ted Nedjelski Karen Turner

One of my first jobs was apple grading in a packing plant in Vernon

Vivian, is this where you worked?

I’d hear the company that owns the big Cannabis company that owns the green houses all around this packing plant was buying up everything around to expand. Wonder if it’s them that got it.

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5 days ago

The federal government has committed $1.81 million over the next three years to support the BC Poultry Association's preparation for direct participation in responses to future outbreaks of highly pathogenic avian influenza in the province. “The persistence of the virus in wildlife and recurrence of outbreaks globally, presents additional risks during the migratory bird season in North America later in 2023,” the National Collaborating Centre for Environmental Health in Vancouver advised in July. For more, visit www.countrylifeinbc.com/ai-risk-rises-with-fall/ ... See MoreSee Less

The federal government has committed $1.81 million over the next three years to support the BC Poultry Associations preparation  for direct participation in responses to future outbreaks of highly pathogenic avian influenza in the province. “The persistence of the virus in wildlife and recurrence of outbreaks globally, presents additional risks during the migratory bird season in North America later in 2023,” the National Collaborating Centre for Environmental Health in Vancouver advised in July. For more, visit https://www.countrylifeinbc.com/ai-risk-rises-with-fall/
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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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