North American Agriculture Report — Sept. 2021
- Keywords:
- farming
For the first time in years, North American farmers are grappling with widespread growing challenges, according to a new report from BMO Economics on the agriculture sector in Canada and the United States.
“In both Canada and the United States, exceptionally hot and dry weather across the prairies has curtailed crop yields and is dragging production of major products like wheat and canola to multi-year lows,” said Aaron Goertzen, Senior Economist, BMO Capital Markets. “But there is a silver lining: after years of excess supply, expectations of a smaller harvest have helped provoke a large increase in crop prices. Strengthening demand has also helped.”
The report notes that food demand not only held up well through the coronavirus recession, it increased sharply—and grocery volumes have remained high even as the restaurant industry has reopened. “Strong demand, coupled with less abundant supply, has given a major lift to both crop and livestock prices,” stated Mr. Goertzen. “That, on its own, is great news for the farm sector.”
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Aaron Goertzen, CFA, Senior Economist
Aaron analyzes performance and risk across a diverse selection of industries and countries. His research is regularly distributed to clients and the media and is also used as an input to internal risk management functions. Aaron also provides macroeconomic support to the team and plays a central role in the development of The Goods, the department’s monthly commodity price publication. Prior t…
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For the first time in years, North American farmers are grappling with widespread growing challenges, according to a new report from BMO Economics on the agriculture sector in Canada and the United States.
“In both Canada and the United States, exceptionally hot and dry weather across the prairies has curtailed crop yields and is dragging production of major products like wheat and canola to multi-year lows,” said Aaron Goertzen, Senior Economist, BMO Capital Markets. “But there is a silver lining: after years of excess supply, expectations of a smaller harvest have helped provoke a large increase in crop prices. Strengthening demand has also helped.”
The report notes that food demand not only held up well through the coronavirus recession, it increased sharply—and grocery volumes have remained high even as the restaurant industry has reopened. “Strong demand, coupled with less abundant supply, has given a major lift to both crop and livestock prices,” stated Mr. Goertzen. “That, on its own, is great news for the farm sector.”
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