Analysis

Farm debt outstanding increasing steadily

Farm debt outstanding at December 31, 2008 rose to $59.1 billion, up 5.9% from December 31, 2007, continuing the steady upswing since 1993. For the third consecutive year, mortgage debt was greater than non-mortgage debt. In 2008, mortgaged debt rose 5.8% to $30.3 billion, while non-mortgaged debt rose 6.0% to $28.8 billion.

The farm debt values in the farm debt outstanding series includes those of farm businesses and non-operator landlords (for liabilities outstanding on farm real estate leased to farm operators), they also include the personal portion of farm households. This series includes all farm sector liabilities regardless of ownership.

Major holders of mortgaged farm debt were Farm Credit Canada (42.1%), chartered banks (25.7%), private individuals (13.0%), credit unions (10.1%) and provincial government agencies (4.7%). Most non-mortgaged debt was owed to chartered banks (51.0%) and credit unions (23.8%).

Farm debt in Canada was 16.3% above the previous five-year average, from 2003 to 2007. In 2008, all provinces increased their debt load, increases ranged from 1.6% in Prince Edward Island to 11.3% in Newfoundland and Labrador.