ECONOMIC GROWTH, 2005 TO 2010
Higher commodity prices drove Saskatchewan’s strong economic growth in the past five years. Production did not increase but the extra money made its way into consumer pockets, corporate profits, and government treasuries and all three increased their spending. This kind of growth is not sustainable over the long term because the next downturn in commodity prices would yield a bust as surely as the increase led to a boom. Fortunately, the level of capital investment should be high enough to ensure that production will increase even if prices do not.
FARM FINANCES IN 2010
In spite of difficulties with either too little or too much water in some regions, grain farmers are doing better financially than they have for years. Net income is at an all time high because crop receipts are increasing more quickly than expenses. 2011 is expected to be just as good.
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