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: 484

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

How One Simple Tool Can Help Protect Crop Quality

The Keep it Clean pre-harvest interval calculator helps canola and pulse growers determine the required waiting period between pesticide application and harvest to protect crop quality.

Heat and Rain have led to a challenging growing season for Cauliflower Growers in Ontario.

As Ontario's cauliflower harvest begins, local growers rely on irrigation and skilled management to navigate summer heat and deliver fresh, high-quality produce across the province.

Foreign Workers Fill Jobs Young Canadians Avoid: CFIB

Nine in 10 small businesses using Canada’s Temporary Foreign Worker Program say they cannot fill those positions with local employees, according to new research from the Canadian Federation of Independent Business. The CFIB said in a release Tuesday that many of the jobs most commonly filled by temporary foreign workers involve overnight shifts, heavy physical labour, outdoor conditions, seasonal schedules or rural locations — work conditions many young Canadians are reluctant to accept. Nearly half of surveyed youth said they would not seek jobs requiring regular overnight work or frequent heavy physical effort. More than one-third said they would avoid mainly outdoor positions or jobs paying at or near minimum wage, the CFIB release said. Harvesting labourers account for about 32% of temporary foreign worker positions in Canada. Other common occupations include nursery and greenhouse workers, cooks, livestock labourers and food service supervisors. Location is another major b

Who Knew so Much Canadian Watermelon is Grown in Ontario

Ontario watermelon season is underway, with growers in Southwestern Ontario preparing for harvest. Warm summer conditions are supporting crop development as consumers look for this locally grown fruit.

4-H Alberta celebrates graduates while investing in the next generation of leaders

Graduation may mark the end of one chapter for 4-H Alberta members, but the organization hopes it is just the beginning of a lifelong connection to leadership and community involvement. In its July Scoop newsletter, 4-H Alberta is celebrating its 2026 graduates while introducing new leadership opportunities designed to help member, and volunteers,continue growing within the organization. Celebrating the Class of 2026 Gardner encourages graduates to remain connected to the organization, noting that the skills developed through 4-H — including communication, responsibility, confidence and leadership — will continue to serve them throughout their education, careers and community involvement. Building leadership for the future Building on that commitment to leadership development, 4-H Alberta has announced the launch of its new Legacy Leaders Program. The initiative builds on the long-standing Key Leaders program while providing additional training, expanded resources, clearer role exp

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service