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

Canadian Innovation Aims to Transform Nitrogen Fertilizers While Eliminating Microplastics

A British Columbia ag-tech company is developing a biodegradable fertilizer coating that could help farmers use less nitrogen, reduce input costs, and eliminate microplastics from controlled-release fertilizers

Ag at the Canada Investment Summit

Multiple provincial governments are pitching projects related to ag

All Wheat Output Seen Down Nearly 11%

Canada’s wheat production will fall from a year ago as both harvested area and average yields decline, according to Statistics Canada’s first production estimate for 2026. Statistics Canada on Wednesday estimated 2026 national all-wheat production at 36.122 million tonnes, down 10.9% from the upwardly revised 2025 crop of 40.562 million tonnes. Despite the year-over-year decline, the projected crop would remain historically large, exceeding production in every year since 2010 except 2013 and 2025. The estimate was close to Agriculture Canada's August supply-demand forecast of 36.271 million. For 2025, the all wheat production estimate was bumped up from the previous view of 39.955 million. The 2026 national average all wheat yield is forecast at 53.6 bu/acre, down 5.6% from the record 56.8 bu last year. The 2026 yield would nevertheless remain above the recent five-year average, reflecting generally favourable growing conditions through much of the growing season. Lower acreage

Sept. 22 training workshop targets mental health in Kansas

A Kansas State University official says an upcoming training session available to Kansans will help to address a concerning trend in mental health and resilience to stress in communities across the state. Tawnie Larson, a program manager for the Kansas Agriculture Safety and Health program at K-State, said 20 spots are open for an online train-the-trainer workshop called Changing Our Mental and Emotional Trajectory, or COMET. The session is planned for 10 a.m. to 2 p.m. (CST) on Sept. 22. Registration is available online. It is being hosted by K-State Extension’s Stress and Resiliency Transdisciplinary team. “The training,” she said, “is aimed at expanding the number of trusted community members equipped to recognize mental health concerns and connect people with help.” The Kansas Department of Health and Environment reports that adult mental illness affects about 1 in 5 Kansans. The need is disproportionate in rural areas, where an estimated 27% of adults experience mental illness

Rotating crops this fall can set garden up for success next spring

This is the gardener’s mantra: Success requires planning. “To give your plants a healthy start next year,” says Kansas State University horticulture expert Matt McKernan, “the best practice is to rotate crops within the same family to a different location than where they’re growing this year.” Crop rotation offers several benefits, according to McKernan. “Plants in the same family are typically susceptible to similar pests,” he said. “Some pests overwinter in the soil; some are able to survive on plant debris. If the same host is available when the pests emerge in the spring, they will be able to continue feeding, and multiply the problem. Crop rotation breaks the cycle of these pests.” McKernan added that plants in the same family also have similar nutrient requirements, so rotating crops prevents the soil from becoming depleted of those nutrients. “And, the varied root system depths from one plant family to the next contributes to the health of the soil,” he said. “Now is the pe

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service