March 14, 2022 By Farm Credit Canada
A new report has highlighted the rise of Canada’s farmland values in spite of impacts from pandemic supply chain disruptions and adverse weather that affected parts of the country.
The report, created by Farm Credit Canada’s (FCC), showed an 8.3-per-cent national average increase in 2021.
Data included highlights changes in Canada’s farmland values from Jan.1 to Dec. 31, 2021, and covers an entire year of disruptions caused by the pandemic, as well as drought that reduced yields across much of the prairies.
In addition to the 2021 increase, FCC reported a 5.4-per-cent national average increase in 2020.
In Ontario, average farmland values increased by 22.2 per cent in 2021, following gains of 4.7 per cent in 2020 and 6.7 per cent in 2019.
The largest increases were recorded in Ontario and British Columbia (22.2 and 18.1 per cent, respectively), followed by Prince Edward Island (15.2 per cent), Nova Scotia (12.3 per cent) and Quebec (10 per cent).
Other provinces showed more moderate average increases, ranging from Alberta at 3.6 per cent to Manitoba at 9.9 per cent. Saskatchewan recorded an average increase of 7.4 per cent, while New Brunswick showed a 5.2 per cent average increase.
There was an insufficient number of publicly reported sales in Newfoundland and Labrador to fully assess farmland values in that province. That was also the case in Yukon, Northwest Territories and Nunavut.
Average farmland values have increased every year since 1993, however, increases were more pronounced from 2011 to 2015 in many different regions. Since then, Canada has seen more moderate single-digit increases in average farmland values.
For more information, visit fcc.ca.
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