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.

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: 460

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

Secretary Rollins Takes Decisive Action and Shuts Down U.S. Southern Border Ports to Livestock Trade due to further Northward Spread of New World Screwworm in Mexico

Yesterday, Mexico’s National Service of Agro-Alimentary Health, Safety, and Quality (SENASICA) reported a new case of New World Screwworm (NWS) in Ixhuatlan de Madero, Veracruz in Mexico, which is approximately 160 miles northward of the current sterile fly dispersal grid, on the eastern side of the country and 370 miles south of the U.S./Mexico border. This new northward detection comes approximately two months after northern detections were reported in Oaxaca and Veracruz, less than 700 miles away from the U.S. border, which triggered the closure of our ports to Mexican cattle, bison, and horses on May 11, 2025. While USDA announced a risk-based phased port re-opening strategy for cattle, bison, and equine from Mexico beginning as early as July 7, 2025, this newly reported NWS case raises significant concern about the previously reported information shared by Mexican officials and severely compromises the outlined port reopening schedule of five ports from July 7-September 15. There

University of Manitoba appoints Dr. Filiz Koksel as Manitoba Strategic Research Chair in Sustainable Protein

The University of Manitoba is pleased to welcome Dr. Filiz Koksel as the new Manitoba Strategic Research Chair in Sustainable Protein, a role that continues to advance sustainable agri-food innovation and leadership in plant and animal protein research and innovation. Dr. Koksel, an associate professor in the Department of Food and Human Nutritional Sciences, leads an interdisciplinary research program that aligns closely with Manitoba’s Protein Advantage Strategy. She holds BSc and MSc degrees in Food Engineering and earned her PhD in Food Science from the University of Manitoba.  “My vision for this Chair is to position Manitoba as a global leader in sustainable protein innovation by uniting scientific discovery with industry partnerships,” said Dr. Koksel. “Together, we will create solutions that advance food security and climate resilience for generations to come.” Dr Koksel’s current work focuses on developing novel, environmentally friendly protein ingredients from crops such

Support staff recognized for contributions to Faculty of Agricultural and Food Sciences

Each year the Faculty of Agricultural and Food Sciences calls for nominations of a support staff member or team who have made outstanding contributions in support of the teaching, research, service and outreach goals of the Faculty. At a celebratory barbecue to celebrate all nominees held on July 9, six individuals and four teams were recognized for their service to the Faculty. Sheldon Beichter, Technician, Carman Research Station Becky Dueck, Technician, Department of Plant Science Atanas Karamanov, Technician, Richardson Centre for Food Technology and Research Minami Maeda, Technician, Department of Biosystems Engineering Finley Makila, Technician, Richardson Centre for Food Technology and Research Donna Ryland, Technician, Department of Food and Human Nutritional Sciences Charlene Hawryluk, Wajiha Shahzad, Uldis Bourne, Jennifer St. Laurent, Dianne Dugald and Vanessa Ryplanski, Departments of Animal Science & Entomology and Glenlea Research Station Minami Maeda, Daniel Benedet an

Some crops look good and other not so good in Saskatchewan

A drive around Saskatchewan provides a wide range of crop conditions, based on rainfall received. Timely thunderstorms, combined with spring rain, are producing decent-looking crops in some locations, particularly the southeast. The poorest crops are in the southwest, but there are areas across the northern grainbelt that are much drier than normal as well. Saskatchewan Agriculture’s weekly crop report puts provincial cropland topsoil moisture conditions at 55 percent adequate, 33 percent short and 12 percent very short. Many fields are at relatively uniform stages, but there is some inconsistent staging which is making spray timing challenging. Areas that have received moderate to high rainfall over the last few weeks are applying fungicides to some of their pulse, cereal and oilseed crops.

AGRI-FOOD 2050 Industry Event

The Agricultural Adaptation Council (AAC) is bringing industry leaders together to envision the future of agri-food in Ontario. The inaugural Agri-food 2050 Event will draw attendees from across the broader agri-food sector including representatives from primary agriculture, agri-business, food processing, agri-food research, and government.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service