Despite ongoing economic hardships, the value of Canadian farmland rose significantly across Canada in 2021, according to Farm Credit Canada (FCC).
Nationally, the price-per-acre climbed by 8.3 per cent last year, compared to 5.4 per cent a year earlier.
The two provinces with the highest average increases were Ontario (22.2 per cent) and B.C. (18.1 per cent.)
“The low interest rate environment and favourable commodity prices seem to have offset some of the many challenges that could have been expected to restrain demand for farmland and the price producers are willing to pay for land,” said J.P. Gervais, FCC’s chief economist, in a news release.
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“It’s a testament to the resilience and business confidence of farm operators who are largely driving this strong Canadian farmland market.”
Manitoba observed an increase slightly above the national average, at 9.9 per cent, after a 3.6 per cent increase in 2020.
“Growing conditions throughout the province were variable, with overall excessive heat and severe drought conditions. This led to some very poor crops, both in terms of quality and yield,” the author’s of FCC’s Farmland Values Report 2021 wrote.
“However, good commodity prices and crop insurance coverage helped mitigate some of the impact of below-average yields.”
The report adds “stable to increasing demand” and limited supply also helped boost values.
It provided the following breakdown on specific regions of Manitoba:
- Parkland: $2,600 average value per acre (+17.6 per cent)
- Westman: $3,100 average value per acre (+12.2 per cent)
- Interlake: $3,200 average value per acre (+9.4 per cent)
- Eastman: $4,800 average value per acre (+5.4 per cent)
- Central Plains-Pembina Valley: $5,000 average value per acre (+4.2 per cent)
FCC notes farmland values across the country have increased every year since 1993, but particularly between 2011 and 2015.
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