By Dori Modney (@Dori_Modney on Twitter) with files from FCC

Farmland values continue to rise but, at a slower rate

Apr 10, 2017 | 4:21 PM

LETHBRIDGE –  Even though the dollar amount fluctuates, one of the most valuable comodities to own is land — and that is particularly true of farm land, as there is a finite amount to go around.
 
Farm Credit Canada’s (FCC) annual report on farmland values, shows the average national value continues to climb, even though most provincial value increases have slowed. 
 
The average value of Canadian farmland increased 7.9 per cent in 2016, following gains of 10.1 per cent in 2015 and 14.3 per cent in 2014. Overall, the average national values have continued to increase since 1993.
 
Not only does farm land value fluctuate across the country but, values can differ within in various provincial regions.
 
The average value of Alberta farmland increased 9.5 per cent in 2016 – the second highest increase in the country.  However, the increase in 2015 was after gaining 11.6 per cent. 
 
Alberta is broken up into four distinct farmland regions, with each posting a different percentage change in farmland value.
 
The Peace region charted a 7.7% increase, while the Northern district posted 11.8%, the Central region came in at 8.6% and the Southern region was at 9%.
 
The FCC’s chief agricultural economist, J.P Gervais, notes demand for Canadian agricultural products remains strong.  A low Canadian dollar and low interest rates – helped sustain farmland values last year.
 
 However, Gervais cautions producers to not be over confident, as crop receipts have increased at a slower rate than farmland values.  He says producers should pinpoint key risk areas and formulate solutions to help manage risks.
 
The full 2016 Farmland Values report an be found on the FCC website.