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SW Saskatchewan | Is that Canadian farm incomes are low.
It has been a policy decision in our dept of ag that what the govt wants is greater "efficiency", that is bigger farms. They have decided that income supports would not be supportive of this goal if it kept smaller farmers around but that an "easy credit" policy could do it.
Thus a lot of farm policy has been at our Government's Farm Credit Corporation to be easy with the money for farm expansion, in Canada we only have six major banks that operate across the whole country and they have a tradition of following the govts lead in farm lending.
And a major part of Canadian lending has been for capital assets-land, machinery, quota etc-that has higher repossession potential than crop inputs! American land is often accessed through rental-this is less common in Canada where expansion largely implies purchase. | |
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In the next downturn
