The end of 2016 could continue to be a slow period for equipment sales in Canada. Farm Credit Canada's (FCC) latest projections predict 2016 will continue to show weakness in farm equipment sales, while things could pick up in 2017.

Looking back, FCC chief agricultural economist JP Gervais says 2015 brought a significant downturn in sales, which usually indicates a weaker agricultural economy, but in this instance, he doesn't think that's the case.

"Purchasing decisions are based on expectations," he says, "in 2015 there were expectations of weakening in the farm economy. Now the Canadian dollar was lower, and that raised the price of equipment, but what it did was actually protect us from a significant downturn in the farm economy, like we witnessed in the U.S. So, yes, the economy at the end of the day for 2015 was pretty good for the farm economy."

Conversely, Gervais thinks it's possible the predicted increase in farm equipment sales for 2017 will be indicative of an even stronger farm economy.