REGINA — Despite higher interest rates, farmland values shot up over the last year, jumping almost 28 per cent in Ontario from July, 2021 to the end of June, 2022, rising faster than in any other province.
Average farmland values continued to increase in most parts of Canada, according to a mid-year review by Farm Credit Canada (FCC).
The highest average farmland value increases in the first six months of 2022 were reported in Ontario (15.6 per cent), Prince Edward Island (14.8 per cent) and Quebec (10.3 per cent), followed by Saskatchewan (8.4 per cent), which was closest to the national average increase of 8.1 per cent.
“Strong farm cash receipts, buoyed by robust commodity prices, have managed to quell some of the profitability challenges from higher interest rates and farm input costs,” said FCC chief economist J.P. Gervais. “Producers are still making strategic investments in their operations and buying farmland, which is in short supply and high demand. This healthy farmland market is a good indication there is confidence and optimism in the future of the industry.”
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