Farm Credit Canada has released its Farmland Value Report, concluding that the average value of Canadian farmland increased three per cent during the first six months of 2010.
That follows increases of 3.6 and 2.9 per cent in the previous two reporting periods.
Below is a province-by-province summary of the report. Full details are available at http://www.fcc-fac.ca/en/AboutUs/Media/news20101004_e.asp.
At 4.3 per cent, Ontario experienced the largest provincial increase in farmland values during the first half of 2010.
Southwestern Ontario saw the most significant increases, notably in the counties of Brant, Kent, Essex, Huron, Perth, Oxford, Wellington and Waterloo. Demand was fuelled by dairy farmers. With restrictions placed on the purchase of dairy quota, farmers purchased additional land instead of quota.
Northern, southern and eastern areas of the province experienced minimal changes in land values. Cash crop operations continued to contribute to strong demand for workable land. Land rental rates remained high, as landlords capitalized on the potential of cash crop revenues.
Intensive livestock operations continued to seek land for expansion and to satisfy nutrient management program requirements. In Huron County, these demands were coupled with immigrating European farmers who paid above-average prices for properties.
In Perth, Wellington and Waterloo counties, the expansion of large multi-generational operations created increased demand for land. Pent-up demand for land in the Chatham and Essex areas saw farmers and investors competing for available property, driving up land prices. Significant increases in Brant County were due to higher demands from various producers, including vegetable and ginseng growers.
The northern, southern and eastern parts of Ontario saw limited land sale activity during the reporting period. Land and property sales were sluggish. Agriculture land sales were stable and changes in land values were minimal.