Study released on Southwestern Ontario’s land values
With “historically low” interest rates, flourishing livestock farms, and an expanding list of investors, Ontario farmers overall are in a good position to begin 2020.
London-based Valco Real Estate Appraisers & Consultants have released their 2019 Southwestern Ontario’s Land Value study.
It shows the land value median sitting at $14,458 per acre in 2019, which is a 5.68 per cent change from 2018.
A partner at Valco Consultants, Ryan Parker, said he is reminding the public that this past year will be remembered as one of the most challenging growing years farmers have faced in decades.
“Growing conditions didn’t really improve all year. We had a really late fall and it was extremely high in moisture. Crops, especially corn, didn’t get harvested until January and when they got done there was still a fair bit of corn left in the fields.”
He added other negative factors that impacted the Land Market were the decrease in profitability over the last 18 months, and some producers experiencing constrictions in production, due mainly to supply and trade changes.
Yet, Parker said the Southwestern Ontario land market continued to produce strong, high prices in most areas.
Overall, Parker said he believes 2020’s land market values will be similar to those in 2019, with no major boosts in crop commodity prices expected.