NEWS HIGHLIGHT
Ontario farmland values rise again
The average value of farmland in Ontario increased by 4.3 per cent in the
first half of 2010, following gains of 3.3 and 2.8 per cent in the two previous
reporting periods, according to the Farm Credit Canada (FCC) Farmland Values
Report.
October 4, 2010, Guelph,
Ont – The average value of farmland in Ontario increased by 4.3 per cent in the
first half of 2010, following gains of 3.3 and 2.8 per cent in the two previous
reporting periods, according to the Farm Credit Canada (FCC) Farmland Values
Report.
This is the highest average increase across Canada.
Published twice a year, the FCC report provides important information about changes in land values
across Canada and is available at www.farmlandvalues.ca.
Ontario farmland values
have been rising since 1993 and increased by an average of 0.5 per cent per
month during the two last reporting periods.
Overall, the average value
of Canadian farmland increased 3.0 per cent during the first six months of
2010. Farm;and vlaues remained the same or increased in each province, except B.C.
“The prices paid for
farmland today often reflect the conditions and events experienced by producers
over the past 6-12 months,” says Michael Hoffort, FCC senior vice-president
responsible for portfolio and credit risk. “It’s important for buyers to
consider those things in determining whether to purchase and what price to pay.
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,” says Jean-Philippe
Gervais, FCC senior agriculture economist. “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.”
In the last
three semi-annual reporting periods, farmland values in Canada increased by an
average of 2.9 in fall 2009, 3.6 per cent in spring 2010 and 3.0 per cent in
fall 2010. The FCC Farmland Values Report has been published since 1984. To
view previous reports, visit Farm Credit
Canada – Publications.
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