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Ontario's middle east | It's not a 100% gain by any means but a weaker currency generally favours us as producers. If we aren't selling more grain/meat than buying inputs and iron, it ain't gonna work anyway you slice it. We sell in US $ terms so, the fx has essentially lowered our debt and current fixed cost structure in $US terms. That is of course assuming one didn't borrow in $US and not many would. I think most equipment has become unaffordable now but most of us have gotten pretty up to date on equipment the last few years. Keep in mind the dollar was still .93 just a few months ago, so dealers had a decent year. It's going to slow a lot now but like Red and Pitt said they are in better shape then US dealers on inventory. The game now IMO is to hunker down and protect working capital, not be adding iron unless it is essential. Keep in mind us Canucks all have footprints on our derrières from the fx at one point or another. There are a few of us in this thread that projected a strong likely hood of this move and possibly took protective action FWIW | |
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