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FCC’s annual Farmland Values Report now available

Farm Credit Canada (FCC) has released the 2021 Farmland Values Report, which provides an annual look at the regional land value trends across Canada in price per acre. Farmland values continued to rise despite last year’s challenges, including extreme weather and supply chain disruptions.

Overall, Canadian average farmland values increased by 8.3 per cent. The highest recorded average increases were in Ontario (22.2 per cent), which is 17.5 per cent more than the province’s 2020 increase, and British Columbia (18.1 per cent) which is 10.1 per cent more than the province’s 2020 increase. New Brunswick and Alberta brought up the rear with 5.2 per cent and 3.6 per cent increases, respectively.

Rising commodity prices, all-time high farm receipts for grains, oilseeds and pulses, and historically low interest rates have driven demand for farmland and value growth. While the Bank of Canada is raising its interest rates in 2022, it will still be reasonably low from a historic perspective after the 125-basis point increase. Tight global crop supplies and strong demand for grains and vegetable oils will keep the 2022 farmland value outlook positive.

Average Canadian farmland value changes (per cent)

Data courtesy of Farm Credit Canada

The extreme weather conditions of 2021 on the Prairies and in British Columbia are likely to be infrequent, but they could have an impact on farmland values all the same. FCC examines how previous extreme weather events have affected farmland values in the report.

For added context, check out the 2020 Farmland Values Report and the 2021 mid-year update. The full 2021 report is available here.