Farmland Values Report – Spring 2013
FCC Chief Agricultural Economist J.P Gervais discusses the results of the Spring 2013 Farmland Values Report and what they mean on a national and provincial level.
- Farmland is an essential resource for agricultural production and a source of wealth for farmland owners.
- Interest rates and crop receipts are two top factors in determining farmland values.
- The average value of farmland in Canada increased by 10% during the last six months of 2012.
- Farmland values remained stable or increased in all provinces. Quebec (+19.4%), Manitoba (+13.9%) and Ontario (+7.2%) saw the largest increases.
- The prospects for farmland values in Canada are good. However, there are many risks that could negatively affect the demand, including weather concerns and possible international supply shifts.
- High farmland values can make it more difficult for producers to expand, although renting land can be an option. The decision really depends on the financial situation of the individual producer.
Return to Multimedia.