Ontario farmland values rise again
By Fruit & Vegetable
By Fruit & Vegetable
Oct. 6, 2009, Guelph, Ont. – The average value of farmland in Ontario
increased by 2.8 per cent in the first half of 2009, according to the
semi-annual Farm Credit Canada (FCC) Farmland Values Report released
Oct. 6, 2009, Guelph, Ont. – The average value of farmland in Ontario increased by 2.8 per cent in the first half of 2009, according to the semi-annual Farm Credit Canada (FCC) Farmland Values Report released recently.
This was the third consecutive semi-annual increase and followed increases of 1.9 and 4.6 per cent in the two previous reporting periods. The complete report is available at www.FarmlandValues.ca.
Overall, the average value of Canadian farmland increased 2.9 per cent during the first six months of 2009. The 12 months from June 2008 to June 2009 saw large fluctuations in prices for agriculture commodities, oil and gas. This created uncertainty in the marketplace and in the agriculture sector. However, in the last three semi-annual reporting periods, farmland values in Canada have increased by 5.8, 5.6 and 2.9 per cent.
“Several factors can impact the crops every year in Canada, the weather being the most important one followed by the commodity prices and the variable demand for food and biofuels,” says Rémi Lemoine, FCC senior vice-president of portfolio and credit risk. “The quality of Canadian farmland remains amongst the best in the world but Canadian producers work with a short growing crop season and variable weather conditions. These two factors have a huge impact on the production and the value of the land.”
The evolution of farmland values across Canada is an indicator of how producers react to market dynamics. “Farmland values data presented in our bi-annual report gives an indication of how the market is evolving,” says Lemoine. “It helps Canadians make farm business management decisions and informed choices about acquiring, holding or selling agriculture land,” says Lemoine.
To see the previous reports, visit: http://www.fcc-fac.ca/