Smaller Farmland Value Increase In 2016
Despite national farmland values continuing to climb in 2016, most provinces lost some steam.
According to the Farmland Values Report prepared by the Farm Credit Canada, FCC, Canada’s farmland values showed an average increase of 7.9% in 2016, compared to 10.1% in 2015, and a 14.3% increase in 2014.
Despite the overall national upsurge, seven of the 51 regions assessed across Canada showed no increase in farmland values in 2016.
Prince Edward Island experienced the highest boost among the provinces, seeing the only double-digit increase at 13.4%.
“A healthy agriculture sector, supported by a low Canadian dollar and low interest rates, helped sustain increases in farmland values in 2016,” said J.P. Gervais, the FCC’s chief Agricultural Economist.
However, Gervais went on to caution producers not to become overly confident, noting crop receipts have increased at a slower rate than farmland values over the last few years, encouraging producers to identify risks and solutions should changes suddenly occur in their business or economic environments in which they operate.