The average value of farmland in Manitoba increased by 5.9 per cent in the second half of 2009, following gains of 5.5 and 4.2 per cent in the two previous reporting periods, according to the Farm Credit Canada (FCC) Farmland Values Report. This is the highest average increase across Canada. Published twice a year, the report provides important information about changes in land values across Canada. Land is one of the major assets required for agricultural production.
Manitoba farmland values have been rising since 2001 and increased by an average of 1.0 per cent per month during 2009.
Overall, the average value of Canadian farmland increased 3.6 per cent during the last six months of 2009. Farmland values remained the same or increased in each province. Manitoba experienced the highest average increase at 5.9 per cent. The complete report is available at www.farmlandvalues.ca.
“Information in the Farmland Values Report is an indicator of how the market for land is evolving across Canada and also how producers react to market dynamics,” says Rémi Lemoine, FCC Senior Vice-President, Portfolio and Credit Risk. “This report can help Canadians make more informed farm business management decisions about acquiring, holding, renting or selling agriculture land.”
A recent FCC Vision Panel survey showed that almost six in ten producers (58 per cent) both own and rent the land where their production is located. The survey, completed in November 2009 by 971 producers across the country, revealed that almost half of producers who indicated that they rent some or all of their land (45 per cent) rent more land now than five years ago. However, producers from Quebec (55 per cent) and the Atlantic provinces (60 per cent) are significantly more likely than most other provinces to report that they are renting about the same amount of land as they were five years ago. For more detail about the FCC Vision Panel survey findings, visit www.fccvision.ca/research.
“Low interest rates, favourable grain prices and high yields generated continued demand for Canada’s high quality farmland. These factors, in addition to the limited availability of quality farmland for sale, are some of the reasons farmland values continue to increase,” Lemoine adds.
In the last three semi-annual reporting periods, farmland values in Canada increased by an average of 5.6 per cent in spring 2009, 2.9 per cent in fall 2009 and 3.6 per cent in spring 2010. The FCC Farmland Values Report has been published since 1984. Previous reports available online.
