Sarnia

BMO: Farmers Able To Cope With Lower Crop Prices

A BMO Economics report says North American farmers are facing the lowest crop prices in years.

But the report's authors are confident farmers will be able to weather the downturn.

Economist Aaron Goertzen says the low prices come after several years of near-record farm earnings.

He also figures high livestock prices will allow diversified operators to offset their lower crop revenue.

Despite lower prices, Goertzen doesn't expect overall crop production to drop much next year.

He argues the high cost of land and machinery will drive most producers to forge ahead with planting despite weak market conditions.

BMO Bank of Montreal's Andrew Bowman says farmers are highly proficient risk managers.

Bowman says the bank remains confident in those farmers ability to manage through fluctuating crop prices.

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