The average value of farmland in Canada increased by 3.0 per cent in the first half of 2010, following gains of 3.6 and 2.9 per cent in the two previous reporting periods, according to the Farm Credit Canada (FCC) Farmland Values Report released Oct. 4.
Published twice a year, the report provides important information about changes in land values across Canada.
Farmland values remained the same or increased in each province except British Columbia. Ontario experienced the highest average increase at 4.3 per cent.
The average value of farmland in Nova Scotia increased by 3.1 per cent in the first half of 2010, following gains of 1.4 and 4.2 per cent in the two previous reporting periods. Values increased by an average of 0.5 per cent per month between January 1, 2009 and June 30, 2010. Since 2001, farmland values in Nova Scotia have remained stable or have risen.
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.
“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.”
The FCC Farmland Values Report has been published since 1984.