By Kaitlynn Anderson
Farms.com
For producers who plan on buying or selling land, there are various components that work together to influence land values.
Particularly, of course, agricultural productivity plays a central role, according to the Municipal Property Assessment Corporation (MPAC).
“In regard to farmland, it is assessed according to its agricultural capability (i.e., its ability to produce crops and/or maintain livestock),” said Jennifer Ramcharan, communications specialist at MPAC.
“Farmland is classified into six different quality classes, with Class 1 farmland having the highest agricultural capability and therefore the most valuable type of farmland.”
In order to establish a current value for farmland, experts that are trained in valuation consider many aspects of the specific parcel of land.
Some of the factors MPAC takes into consideration are (see website for further details):
- Climatic zones. The province is divided into seven climatic zones based on temperatures, average growing season length and precipitation. The first climatic zone (Zone 1), located in southwestern Ontario, tends to have the longest growing season. Growing seasons tend to get shorter and the variety of crops that can be cultivated tends to decrease as you move towards northern Ontario, which translates into lower agricultural productivity of the land. Areas with higher agricultural productivity tend to have higher land values.
Soil composition. Included in this category are: soil texture, topography, stoniness, drainage, flooding, erosion and depth to bedrock. For example, MPAC uses five topography classifications, each of which possesses a different level of erosion hazard. Steeper slopes also make it more difficult for livestock to access pastures and producers to access fields with machinery, according to MPAC. Since a more favourable soil profile results in higher agricultural productivity, it also leads to a higher land value when assessed.
Tiling. MPAC considers tile drainage when they classify farmland as it may increase land productivity and the value of the land.
