FCC Farmland Values Report - Ontario

Ontario farmland values increased an average of 15.9% in 2013, following gains of 30.1% in 2012 and 14.3% in 2011. Much of this increase occurred in the first half of the year. Average farmland values in the province have continued to rise for 25 years.

The province saw a mix of transaction types, including land sales through real estate brokers, property auctions and the tender process. Ongoing low interest rates contributed to the market activity.In some areas of southern Ontario, land with the most favourable soil types commanded high market demand.

The counties of Huron, Simcoe, Middlesex and Elgin led the province with the most significant increases. In other regions, land values levelled off, although demand remained relatively high. In several areas, the demand for farmland outweighed the available supply, driving up prices.

The need for a larger land base for manure management and cropland expansion fuelled demand from intensive livestock enterprises. Favourable crop yields and receipts also stimulated demand from cash crop producers for workable farmland.

With prices for farmland typically higher in southern Ontario, some buyers acquired land in the northern regions at a lower price.

For the complete FCC Canadian Farmland Values Report click here: https://www.fcc-fac.ca/fcc/about-fcc/corporate-profile/reports/farm...

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Comment by Joe Dales on April 14, 2014 at 11:04am

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