Oct. 4, 2010, Regina – The average value of farmland in Canada increased by three per cent in the first half of 2010, following gains of 3.6 and 2.9 per cent in the two previous reporting periods, according to the Farm Credit Canada (FCC) Farmland Values Report released today. Published twice a year, the report provides important information about changes in land values across Canada and is available at www.farmlandvalues.ca.
Farmland values remained the same or increased in each province except British Columbia. Ontario experienced the highest average increase at 4.3 per cent. Click here to view the provincial news releases.
"The prices paid for farmland today often reflect the conditions and events experienced by producers over the past six to 12 months. It's important for buyers to consider those things in determining whether to purchase and what price to pay," says Michael Hoffort, FCC senior vice-president, Portfolio and Credit Risk. "Although some commonalities exist, this report shows that each province and even each region had a unique set of factors that contributed to the change in farmland values."
Jean-Philippe Gervais, FCC senior agriculture economist, says there is strong competition for highly productive farmland in parts of the country. "We are seeing various types of land ownership, which provides farmers with a choice about how they want to operate their business. Some producers choose not to own land to keep capital costs in check or because they can afford to rent better quality land closer to them. This diversity, and the fact that land is still a desirable asset, demonstrates the strength of agriculture over the long term which is good for the industry."
The FCC Farmland Values Report has been published since 1984. To view previous reports, visit Farm Credit Canada – Publications.
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