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Current ratio: The foundation of farm financial fitness

Reference: FCC

What a difference time makes. Borrowing costs climbed in 2018 from their historic lows one year earlier. Farm cash receipts flattened nationally over the same period. Over the next weeks, FCC Ag Economics will make sense of these evolving financials and more. Check back weekly to see where Canadian ag is going – and how key financial tools can help you stay ahead of the game.

Canada’s ag sector has been able to sustain a solid financial foundation over the last five years. That will likely be put to the test in 2019, as net cash income will likely flatten this year despite an expected 2% year-over-year gain in revenues. And while I see net worth also growing, both expenses (including interest expenses) and total liabilities will probably increase alongside them... Read More