1. Al Mussell

2. Overview The survey Farm optimism/attitudes What changes are they planning? How can service providers help?

3. Purpose- to understand economic attitudes, perceptions and intents Confidence in ag economy Investment, with some emphasis on land Planned adjustment to ag market conditions Forthcoming farm ownership/organization changes The Survey

4. 455 farmers, subscribers to Western Producer and Country Guide Mostly crop producersMostly from 3 Prairie provinces Relatively larger, older, and more organized as corporations vs. census reference Who Responded?

6. How would you rate the current state of economic conditions in the agriculture sector and in your own operation- today versus 12 months out? Thinking about your farm's situation right now, how comfortable are you with making a capital purchase or expenditure for your farm such as land, equipment or buildings? Compared to 12 months ago, are you now more or less comfortable making a major capital purchase or expenditure for your farm? Business Confidence and Planned Changes

9. Symmetry in Issues and Threats; Dichotomy in Confidence Most Important Issues and Threats

13. To adjust to lower price environment To succession issues Changes Planned

14. How are you making adjustments to reduced crop revenues vs. the last 5-6 years? Adjustments Planned in Cropping Practices

15. 34% of respondents plan to make changes in ownership of farm 62% of those planning changes will be transferring ownership to member of immediate family or a partner 30% of those planning to transfer to family member or partner had a formal plan in place Ownership/Succession

16. Who do you rely upon as your most trusted business advisors? Most Trusted Advisors

17. Acquisition Growth Succession Assets, Equity, Risk Acquisition Growth Succession Family Farm Life Cycle

18. Land prices paid as marginal costs, especially for larger farms Newer, larger machinery drives demand for land; and vice versa Ongoing process of restructuring toward fewer, larger farms; attracting people to work in farming But, remains a diversity of farm sizes- very few in survey indicated intent of selling land Making Sense of Land Prices

19. Acres $/acre Decreasing Costs and Asset Capitalization Unit Cost Revenue

23. More confidence in themselves that their sector- on the same issues 56% at least as confident making inevestments as last year, despite crop price changes They have retooled; few financial concerns But, additional investments may complicate succession issues left in the background What Inferences Can be Drawn?

24. Technology, investment treadmill continuing to pressure farm structure But understanding land purchase behaviour remains elusive, complex Broad shifts to lower crop prices not expected What Inferences Can be Drawn?

25. Technology, investment treadmill continuing to pressure farm structure Understanding land purchase behaviour remains elusive Broad shifts to lower crop prices not expected Business trust based upon knowledge, personal relationships, perceived integrity What Inferences Can be Drawn?