Land values continue to rise: FCC   

Glacier FarmMedia—Farm Credit Canada’s mid-year review shows cultivated farmland values rose an average of 5.5 per cent in the first half of this year.

From July 2023 to June 2024 the increase was 9.6 per cent.

J.P. Gervais, the federal crown corporation’s chief economist ,said values are increasing at a slower rate but described the growth as strong.

The highest average six-month increases were in Saskatchewan at 7.4 per cent and Quebec at 5.4 per cent.

Alberta and British Columbia recorded 4.6 per cent and five per cent, respectively, followed by Manitoba at 3.9 per cent and Ontario at 2.1 per cent.

FCC said higher borrowing costs, lower commodity prices and increased land prices have not deterred buyers.

“Looking ahead, declining borrowing costs and a limited supply of available farmland should sustain the current high prices for farmland,” FCC said in a news release.