A senior economist with the Farm Credit of Canada is out with some information outlining how a weak loonie is affecting the industry.
In his report, Senior Agricultural Economist Leigh Anderson states Canadian crop and livestock prices have mainly been driven by the dollar.
In comparing the week of January 20 of this year to the same period last year, Canola prices are 7.8% higher. Conversely, soybeans are 11.3% lower. Alberta fed steer prices are down 7.2%.
However, Anderson says despite the drop in prices for soys and steer, it could be a lot worse if the dollar were higher.
The loonie also impacts farm inputs which often increase in price when the dollar declines. Anderson points out that global fertilizer prices have weakened and domestic fertilizer prices are flat compensating for the overall decline in the price of fertilizer denominated in U.S. dollars.
But while the low loonie can cushion the blow in some areas it's having a major impact elsewhere. The low Canadian currency values also raise farm equipment costs.
