Farm Credit Canada Releases Farmland Values Report: National Increase by 10%
By Amanda Brodhagen, Farms.com
Farm Credit Canada (FCC) released its Spring 2013 Farmland Values Report on [April 15, 2013] – a report that’s been released semi-annually since 1990. Farmland in more recent years has been deemed a sexy topic in agriculture, which makes this report even more popular among farmers and investors.
According to the spring release by Farm Credit Canada (FCC), the average value of Canadian farmland increased by 10.0% during the second half of 2012.While the national average increased by 10.0%, the values vary considerably between provinces – with Quebec (19.4%), Manitoba (13.9%) and Ontario (11.9%) showing the highest average increases comparatively.
The FCC report tracks and highlights average changes in farmland values provincially and nationally, which helped producers make more informed business decisions. The two key drivers of the report are strong commodity prices and low interest rates. However, FCC warns that knowing ones risk tolerance is important when assessing to acquire farmland.
The following is a breakdown by province:
•Alberta – average increase of 7.2%.
•British Columbia – average increase of 0.4%
•Manitoba – average increase of 13.9%
•New Brunswick – unchanged of 1.3%
•Newfoundland and Labrador – unchanged
•Nova Scotia – average increase of 6.8%
•Ontario – average increase by 11.9%
•Prince Edward Island – average increase by 5.7%
•Quebec – average increase by 19.4%
•Saskatchewan – average increase by 9.7%