Farm Credit Canada has come out with it's top five economic trends facing agriculture in 2016.
Number one on the list - little interest rate risk.
The FCC's J. P. Gervais says the overall economic environment is expected to support farming operations, agribusinesses and food processors in 2016.
Gervais sees fewer opportunities for profits as global supply remains high or increases in 2016.
However, he suggests the low Canadian dollar will continue to provide support for Canadian producers.
FCC expects the growth in farm debt will ease this year for two reasons - the rise in farmland values will slow and the purchases of farm equipment will decline.
The fourth trend facing agriculture is supply disruptions and opportunities from weather patterns.
That includes the impact that droughts in Russia and Ukraine are expected to have on wheat production.
FCC's fifth and final economic trend facing agriculture in 2016 is price conscious consumers demanding more food diversity.
Gervais points out that while Canada has traditionally thrived producing agricultural commodities, that may no longer suffice giving the growing demand for diversity.
He adds that understanding the trends is the first step on the path to capturing the opportunities they provide.
