Ontario farmland values rise again
By Farm Credit Canada
By Farm Credit Canada
October 27, 2008, Guelph, Ont. –
The average value of farmland in Ontario increased by 4.6 per cent in
the first half of 2008, according to Farm Credit Canada (FCC) research.
October 27, 2008, Guelph, Ont. – The average value of farmland in Ontario increased by 4.6 per cent in the first half of 2008, according to Farm Credit Canada (FCC) research.
As Canada’s leading provider of financing to the agriculture industry, Farm Credit Canada recently released its fall 2008 Farmland Values Report. This report is produced twice a year to provide agricultural producers and agribusinesses with important information about changes in land values across Canada. Land is one of the major assets required for agricultural production. This one-of-a-kind report has been published since 1984.
“Farmland values data helps Canadians make farm business management decisions and informed choices about acquiring, holding or selling agriculture land,” says Rémi Lemoine, FCC senior vice-president, portfolio and credit risk. “The values in this report reflect Canadian agriculture trends at the beginning of 2008. Crop producers were optimistic about long-term profitability. Commodity prices for grains and oilseeds were stimulated by the growing demand for food and biofuels. Land prices also are being driven by increased commodity prices and interest from non-farm investors.”
There is growing interest in farmland as an investment. When investors compare buying farmland, residential properties or stocks, farmland is looking much more attractive. “We’ve noticed this particularly in Western Canada. It appears to be more attractive to investors due in part to the oil and gas industry, potash resources and relatively low land prices compared to parts of Eastern Canada,” says Lemoine.
In the last three semi-annual reporting periods, farmland values in Ontario have increased by 2.7, 1.2 and now 4.6 per cent.
Overall, Canadian land values increased by 5.8 per cent in the first six months of 2008. This is consistent with the increasing trend to increases since 2000.
The complete Farmland Values Report is available at www.FarmlandValues.ca.