The booming real estate market is not just limited to houses, farmland and the estates attached to them are also seeing a record rise in value. People are looking to make changes in all areas imaginable, whether that means expanding their agriculture business or finding that nice spot in the country to get away from the hustle and bustle of city living.

This can mean two things:

• It may be the right time to refinance your farm.

With the current rise in value there may also be a change in the interest rates of your loan. These savings could be used to grow your business and take advantage of the newest in labour saving farming technology. This can all be possible with a new Agricultural Farm Loan.

• Generational Change of Pace

Millennials aren’t just looking to move into the housing market, the next generation is looking to purchase farmland as well. Taking advantage of high prices as well as the high demand means that now is the time to cash in on your farm credit and set your sights on a change of pace.

Whether it’s selling to the next group of farmers or just freeing up some equity by selling off a portion of your land, talk to a FamilyLending Agricultural Mortgage Specialist to find out how to take advantage of the boom.

The most noteworthy growth industry in Agriculture in 2018 is forecasted to be the Medical Marijuana trade. Health Canada estimates that by 2024 the Medical Marijuana industry will be worth 1.3 billion dollars and many Ag businesses are bursting to grab their piece of the pie.

In 2017 the number of licensed producers has more than doubled with companies’ eager to plant a flag of their own in this budding industry. Greenhouses have been popping up all over Ontario; from places just focused on the cultivation of the product, to those committed to see if from their seeds to the front doors of the consumers.

The logistics behind a process such as this can be tricky, from applications to the Federal Government, to finding the right agricultural farm loan to help use your current assets to expand your operations into this burgeoning industry.

Having someone experienced that understands farming and finance is key to expanding into the business of growth in 2018.

Talk to us at FamilyLending. With many experienced Agriculture Mortgage Specialists, we can help.

Although long considered a “low risk, low return” asset, Canadian farmland is high demand today…and for good reason. Often, investment in farmland outperforms Canadian stock and bond indices. From 2012 to 2014, Ontario farmland increased in value by an average of 19.2%, according to Farm Credit Canada. In contrast, for that same period, S&P/TSX Composite Total Return index increased 10.2%.

Because farmland is not correlated to the overall stock market and it positively correlates with the rising commodity prices, investors are attracted to the portfolio diversification that investment in agricultural land offers. And you will never see farmland value bottom out completely, unlike the risk with stocks and bonds.

A 2009 report from Hancock Agricultural Investment Group, stated that statistics prove the value of North American farmland is an effective tool for hedging inflation. Because farmland is needed to produce foods, which will always be in demand, it is not highly price sensitive and could deliver great rates of return.

When making an agricultural land investment, be sure to talk to a mortgage broker about agricultural mortgages specifically. They could save you $1,000’s through lower interest rates and flexible payment plans, on an investment that could outperform the stock market year after year.

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Uncertainty about the global outlook is undiminished, particularly with respect to policies in the United States. The Bank has made initial assumptions about prospective tax policies only, resulting in a modest upward revision to its US growth outlook. Overall, the global economy is strengthening largely as expected and prices of some commodities, including oil, have risen. The rapid back-up in global bond yields, partly reflecting market anticipation of US fiscal expansion, has pulled up Canadian yields relative to the October Monetary Policy Report (MPR).

In contrast to the United States, Canada’s economy continues to operate with material excess capacity. While employment growth has remained firm, indicators still point to significant slack in the labour market. The resource sector’s adjustment to past commodity price declines appears to be largely complete, but negative wealth and income effects will persist. Meanwhile, the Canadian dollar has strengthened along with the US dollar against other currencies, exacerbating ongoing competitiveness challenges and muting the outlook for exports. Consumption is expected to remain solid, while residential investment will be tempered by previously announced changes to housing finance rules and by mortgage rates that have risen in response to higher bond yields. Federal and provincial fiscal measures are still expected to support growth in 2017.

Bearing in mind the important assumptions embedded in its forecast, the Bank projects that Canada’s real GDP will grow by 2.1 per cent in both 2017 and 2018. This implies a return to full capacity around mid-2018, in line with October’s projection.

Inflation in Canada has been lower than anticipated since October, mainly because of declines in food prices. Measures of core inflation are below 2 per cent, reflecting material excess capacity in the economy. As consumer energy prices rise and the impact of lower food prices dissipates, inflation is expected to move close to the 2 per cent target in the months ahead and remain there throughout the projection horizon while excess capacity is being absorbed.

In the context of a projection that is largely unchanged, the Bank’s Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent. Governing Council will continue to assess the impact of ongoing developments, mindful of the significant uncertainties weighing on the outlook.

Information note

The next scheduled date for announcing the overnight rate target is 1 March 2017. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 12 April 2017.