Ontario farmland values rise again
Guelph - 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 released today. This is the highest average increase across Canada. Published twice a year, the 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. Farmland values remained the same or increased in each province except British Columbia.
“The prices paid for farmland today often reflect the conditions and events experienced by producers over the past 6-12 months. It’s important for buyers to consider those things in determining whether to purchase and what price to pay,” says Michael Hoffort, FCC Senior Vice-President, 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,” 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.
As Canada’s leading agriculture lender, FCC is advancing the business of agriculture. With a healthy portfolio of more than $19.7 billion and 17 consecutive years of portfolio growth, FCC is strong and stable committed to serving the industry through all cycles. FCC provides financing, insurance, software, learning programs and other business services to producers, agribusinesses and agri-food operations. FCC employees are passionate about agriculture and committed to the success of customers and the industry. For more information, visit www.fcc.ca.