The average value of farmland in Canada increased by 3% in the first half of 2010, following gains of 3.6 and 2.9% in the two previous reporting periods, according to the Farm Credit Canada (FCC) Farmland Values Report released last week. 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. To view the provincial News releases, visit: http://www.fcc-fac.ca/en/AboutUs/Media/Newsreleases_e.asp.
“The prices paid for farmland today often reflect the conditions and events experienced by producers over the past 6 to 12 months. It’s important for buyers to consider those things in determining whether to purchase and what price to pay,” said Michael Hoffort, FCC senior vice-president of 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.”
“Competition for highly productive farmland is strong in parts of the country,” said Jean-Philippe Gervais, FCC Senior Agriculture Economist. This diversity … demonstrates the strength of agriculture over the long term.”