According to the latest Farm Credit Canada Farmland Values Report, the average value of Canadian farmland increased by 5.2 per cent in 2019.
That is the smallest increase over the past decade and is part of a five-year trend of softening growth.
According to J.P. Gervais, FCC’s chief agricultural economist, changes in commodity prices, global trade uncertainty and weather are some of the factors.
"We reached a peak in farm income right around 2015," said Gervais. "Since 2015 it's been relatively stable."
From a provincial perspective, Ontario was one of three provinces where farmland value was slightly above the national average. Quebec and Saskatchewan were the other two.
"We had tremendous growth in the 10 years prior to 2015. We're at a point where we're not exactly sure what to expect for the next few years," added Gervais.
According to the FCC, average farmland values have increased every year since 1993.
The current report reflects factors that influenced average land values in 2019 and does not include the COVID-19 pandemic which is expected to be reflected in future reports.
For more information and insights, visit www.fcc.ca/AgEconomics.