Ontario Agriculture

The network for agriculture in Ontario, Canada

FCC: Where are Farmland Values Heading?

Agricultural economists are said to seldom agree on things. The outlook for farmland values provides an excellent case in point.

FCC released its annual Farmland Values Report. The national average farmland value increased 22%, the highest increase FCC has ever reported. Large profit margins for crop production and continued low interest rates have driven the recent surge, mostly observed in the first half of last year.

As we’ve noted before, the margins for the crop sector are expected to tighten. But there’s no consensus on what the future entails. Opinions diverge broadly, as outlined in these two separate outlooks on farmland markets.

A Re/Max report  states that despite a moderation of prices in the short-term, the positive long-term outlook for Canadian agriculture will sustain a “healthy” demand for farmland.

Professors Baker, Boehlje & Langemeier from Purdue University (Indiana) conducted a study which urges more caution when it comes to farmland valuation.

“Even though our data confirms the conventional wisdom that farmland has high returns, low risk, and is a good inflation hedge, the current [price /10-year average rental rate] ratio suggests this is not a good time to buy. Those purchasing farmland today should not ignore the prospects of “buyer’s remorse”.

Although crop prices have rebounded from their recent lows, the drivers of this recovery may be short term; such as being a function of the situation in Ukraine. As 2014 progresses, I’d urge crop producers to be cautious about using recent returns to project future cash flow.

What are you seeing in your area?

 

James Bryan, Agricultural Economist, Farm Credit Canada

Views: 490

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Canada Backs AI Tools for Smarter Vineyards

The Government of Canada is investing in advanced agricultural technology to help grape growers improve crop management and disease detection. Funding will support the development of innovative machine learning and computer vision tools that provide real-time crop insights, helping farmers increase productivity, improve crop health, and strengthen the long-term resilience of the grape and wine industry.

Canada Pens Potash Deal with Bangladesh

Canada has announced a new government-to-government agreement with Bangladesh for the supply of Canadian potash. The deal is expected to support food security, strengthen trade relations, create opportunities for Canadian workers, and ensure a reliable fertilizer supply for agricultural production.

Still Slow Going for Saskatchewan Harvest

The Saskatchewan harvest continued to make relatively modest progress this past week and remains well behind normal. Thursday’s provincial crop report showed the overall harvest at just 27% complete as of Monday, up 9 percentage points from a week earlier. That is well behind 41% last year, and the five- and 10-year averages of 58% and 50%. Most of the progress came earlier in the week before widespread heavy rainfall brought fieldwork to a halt across much of the province. Some of the largest totals included 138 mm in the rural municipality of Longlaketon, 132 mm in Eyebrow, 127 mm in Sarnia and 121 mm in McKillop. Fields are now saturated in many areas, leaving producers waiting for warmer, drier weather before combines can return. Cropland topsoil moisture increased sharply, with 33% rated surplus and 58% adequate. Another 7% is rated short and 2% very short. Excess moisture and high winds were the main sources of crop damage during the week, the report said, with isolated

ICE Close: Sharp Crude Rally Supports

Canola futures closed moderately higher Thursday, supported by strength across the broader oilseed complex and a sharp rally in crude oil. Chicago soybean futures posted solid gains ahead of Friday’s USDA WASDE report, providing spillover support to canola, while surging energy markets added another bullish influence for vegetable oils and biofuel feedstocks. Brent crude jumped more than 6% to over US$107/barrel and U.S. crude climbed above US$102 as escalating Middle East tensions heightened concerns about global energy supplies. A slightly weaker Canadian dollar also helped underpin canola by making Canadian supplies more competitive for foreign buyers. Today’s Saskatchewan crop report pegged the overall harvest in that province at 27% complete as of Monday, up just 9 points from a week earlier and well behind last year and the average pace as wet conditions continue to hold farmers back. The canola harvest was estimated at 9% complete. Additional precipitation and periods

Alberta harvest reaches 10 per cent complete

According to Alberta Agriculture and Irrigation’s latest crop report, 10 per cent of major crops have been harvested, as of September 1, 2026. That’s up six percentage points from the previous week, although harvest remains behind the five-year average of 23 per cent and the 10-year average of 17 per cent. Harvest progress varies across the province. The South Region reported 27 per cent of major crops harvested, while Central Alberta sits at nearly 12 per cent. Harvest is just getting underway in many northern areas, with completion ranging from one to three per cent across the Northeast, Northwest, and Peace regions. Dry peas continue to be the furthest along, with just over half of the provincial crop harvested. Barley harvest has reached 20 per cent complete, while six per cent of spring wheat acres have been combined. The latest report also shows soil moisture conditions remain well above historical averages across Alberta. Provincial surface soil moisture is rated 56 per cen

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service