October 8, 2021 By Top Crop Manager
Despite the many challenges 2021 has brought to farmers across Canada, high commodity prices in 2020 and low interest rates have resulted in high demand and prices for farmland in the first half of 2021, according to Farm Credit Canada’s (FCC’s) mid-year farmland values report.
Average farmland value increases
|Average % change, Jan. to June 2021||Average % change, June 2020 to June 2021|
|Prince Edward Island||0.4||1.5|
Source: FCC calculations
In the first six months of 2021, Canadian farmland values increased an average of 3.8 per cent; the year-over-year increase was 6.1 per cent. Ontario saw the highest increases at 11.5 per cent and 15.4 per cent, respectively. Low availability and producers migrating from higher- to lower-priced areas have combined to drive up the price of land. As British Columbia already has the highest land value per acre, an increase of 8.8 per cent in six months (13.7 per cent in the past 12 months) is significant.
While the Prairie provinces all showed modest increases in land values, FCC predicts the recent drought and production challenges might have an effect on land values in the latter half of 2021. |READ MORE