According to a just-released analysis by Farm Credit Canada, the financial outlook for grain producers has improved somewhat since the beginning of the calendar year.
Justin Sheppard, a senior economist with FCC notes that despite all the tariff and trade worries, the new crop price outlook for the major crops has improved a bit since January.
While some areas of Western Canada have been hit with drought, the Normalized Difference Vegetation Index is pointing to an overall average crop on the Prairies.
As well, recent rainfall and cooler temperatures should help crops in their late stages of development.
The FCC report says while anticipated margins are higher than those recorded last year, they continue to fall below the five-year average.
FCC says for many producers, especially when considering land costs, projected returns are expected to be at or near breakeven.
