The Rural Voice, 1986-08, Page 33NEWS
ing interest rates, and federal and
provincial programs which reduce
the effective interest rates.
Major items which are likely to
show substantial increases are
wages, machinery repairs, other
livestock expenses, and
miscellaneous operating expenses.
On balance, total operating and
depreciation expenses are expected
to decline 2-3 per cent, to $15,800 -
$15,900 million.
During the first half of 1986
numerous federal and provincial
programs have been announced
which will have an impact on 1986
realized net farm income. In addi-
tion, proceeds from insurance
claims are exceeding year earlier
amounts by a substantial margin.
Farm cash receipts from insurance,
Western Grain Stabilization pay-
outs, deficiency payments, and
other government payments are ex-
pected to exceed $1,750 million
compared to the $1,453 million
distributed in 1985. As a result,
1986 realized net farm income is
likely to remain near the $3,800 -
$4,000 million range under the ex-
isting economic and policy en-
vironment.
Statistics Canada also released
estimates of farm capital values for
1985. The statistics indicate that
farm capital values continued to
decline in 1985 to a level of $115.3
billion, 6.3 per cent lower than the
1984 level. Although outstanding
farm debt for 1985 will not be
known until December 1986, it is
unlikely that farmers retired
substantial amounts of debt. Thus,
the farm debt -to -asset ratio will
likely increase to 18.0 - 18.5, up
from 17.0 in 1984.
Statistics Canada's estimate of
the per acre value of farm land,
which incorporates census of agri-
culture data, the National Farm
Survey, as well as land transaction
data from various sources, declin-
ed 7.4 per cent during 1985 to an
average of $526. Land and
building values vary considerably
across the country due to varying
production and economic condi-
tions. Ontario had the highest per
acre land value at $1,409, while
$319 was the lowest value per acre,
in Manitoba. ❑
Tell them you saw
their advertisement
in The Rural Voice.
TS
FUELS
5 FUELS &GAS BARS
910 YONGE STREET SOUTH
WALKERTON
519-881-2745
OPEN 6 a.m. to 12 Midnight Daily
All night Friday & Saturday
or CALL ANYTIME
FAST HARVEST SERVICE
Ready to Receive
WINTER WHEAT & SPRING GRAINS
Phone us for Information and prices
MILL ELEVATOR
519.529.7951 519-529.7040
HODGES
MILLING LTD.
DUNGANNON
Licensed under the Grain Financial Protection Program
AUGUST 1986 31