Que­bec Farm debt – a pos­i­tive lever of de­vel­op­ment

Stanstead Journal - - FORUM -

The Union des pro­duc­teurs agri­coles (UPA) finds a new re­search re­port, en­ti­tled L’en­det­te­ment des fer­mes au Que­bec: un por­trait con­trasté, very in­ter­est­ing. It was pro­duced by the In­sti­tut de recherche en economie con­tem­po­raine (IREC).

The re­port con­firms that the av­er­age rate of in­debt­ed­ness on Que­bec farms is high when com­pared to the Cana­dian whole, but that it is not “ex­ces­sive” con­sid­er­ing the pos­i­tive ef­fect of the bor­row­ing strat­egy of pro­duc­ers. This strat­egy, which stems from fi­nan­cially hefty Que­bec agri­cul­tural poli­cies, ac­tu­ally per­mits the pro­duc­ers to in­crease their ca­pac­ity to invest their cap­i­tal and to be more prof­itable.

Ac­cord­ing to the UPA’s chief economist, Charles-Felix Ross, “Our in­come se­cu­rity pro­grams and the mech­a­nisms to put them in place al­low our agri­cul­tural en­ter­prises to per­form and be present all over the ter­ri­tory. This abil­ity to bor­row in relation to higher and more sta­ble net rev­enues ex­plains the level of in­debt­ed­ness and its use as an eco­nomic lever of de­vel­op­ment.”

Visit www.irec.net to see a copy of the re­port.

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