Potatoes in Canada

News Business & Policy
FCC: High prices and demand for Canadian farmland in 2021


October 29, 2021
By Potatoes in Canada

Topics

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 2021Average % change, June 2020 to June 2021
British Columbia8.813.6
Alberta3.75.6
Saskatchewan1.83.5
Manitoba3.56.3
Ontario11.515.4
Quebec8.113.7
New Brunswick0.91.8
Nova Scotia4.55.8
Prince Edward Island0.41.5
NewfoundlandN/AN/A
Canada3.86.1

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.

Advertisement

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


Print this page

Related

Tags



Leave a Reply

Your email address will not be published. Required fields are marked *

*