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Canadian Farm Land Values Increased 2.9% during first half of 2009.

Farm Credit Canada’s semi-annual land value survey for the period Jan. 1 to June 30, 2009,
By Farms.com Editors
The average value of Canadian farmland increased 2.9 per cent during the first six months of 2009, following increases of 5.6 and 5.8 per cent in the previous two reporting periods.
Farmland values increased in most provinces. New Brunswick experienced the highest increase at 5.6 per cent, followed by Manitoba, with an increase of 5.5 per cent.
Two provinces experienced similar percentage increases, Quebec (4.3) and Nova Scotia (4.2).
Saskatchewan farmland values continued to rise with a 3.4 per cent increase, followed by Ontario and Newfoundland and Labrador which each experienced an increase of 2.8 per cent.
Alberta had the smallest increase at 1.0 per cent while British Columbia and Prince Edward Island farmland values decreased by 0.7 and 1.4 per cent respectively.

Frank Borszcz, Real Estate Specialist with Farms.com was asked about his thoughts in regards to why farm land prices continued to increase in Canada.

“The low interest rates we have had and the ability to lock in some reasonable long term rates has producers interested in growing,” he said.

“At the same time, there is a pent-up demand for land, on our website www.realestate.farms.com we are seeing a lot of farms selling quickly and the agents are telling me they have lots of buyers for good farmland.”

Good commodity prices in the fall of 2008 carried through to the winter and spring of 2009. Production costs, notably fertilizer and fuel, were down. As a result, buyers have been in the market.

The full Farm Credit Canada Report can be found at www.farmlandvalues.ca

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