James Bryan with Farm Credit Canada says grains and oilseeds had a big run-up in prices and profitability over the last decade, while the cattle and hog sectors faced a lot of challenges.
But Bryan says the 2014 to 2023 agricultural outlook from the Organisation for Economic Co-operation and Development and the agriculture branch of the United Nations paints a different picture going forward.
The report says crop prices are expected to drop for one or two more years before stabilizing at levels above the pre-2008 period, but significantly below recent peaks.
Bryan says that means profit margins will be much tighter for producers.
The report has a more positive outlook for the cattle and hog sectors, noting that a free trade agreement Canada signed with Europe last fall will likely increase exports for the meat sector.