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Learn More About Working Capital Interest

 

 
 
DESCRIPTION Interest charge for financing working capital for one production cycle 
 
Working capital is half of the following costs: energy, repair and maintenance, property taxes and insurance, office and overhead, contract services, farm vehicle and labour 
 
The interest rate applied is prime rate plus 1.5%  
Measurement Methodology Farmer Survey for the value of working capital 
 
Statistics Canada for interest rate 
Updating Frequency Annually updated in the first full quota period in a calendar year 
Updating Methodology Interest rate is updated based on the following Statistics Canada index:
 
V122495 – Financial market statistics, last Wednesday unless otherwise stated; Canada; Chartered bank administered interest rates – prime business