Ontario farmland prices on average increased 3.6 percent in 2018, FCC reports
Farmland values continued to climb across Canada in 2018, driven in part by a tight supply situation, Farm Credit Canada is reporting.
The overall increase at 6.6 was lower than in the previous year when values moved up 8.4 percent.
The average increase in Ontario was 3.6 percent, down from 9.4 percent in 2017.
FCC said farmers are making more strategic land investments, paying a higher price for land that has the potential to be more productive or buying blocks of land to improve efficiency.
With the outlook murky for farm incomes in 2019, FCC is advising farmers to have a risk management plan in place that takes into account possible economic changes.
“Market conditions can change rapidly and this can impact values,” the report warns.
FCC’s chief agricultural economist Jean-Philippe Gervais said he expects the rate of increase in farmland values will slow on a national basis in 2019, with prices increasing on average about three percent.
“We have some serious short-term challenges ahead for 2019, but I do think the long-term outlook remains positive,” he said.