By Jean-Paul MacDonald
Farms.com
Recent data from Statistics Canada reveals that Alberta has lost its position as the top province in terms of total farm real estate value in Canada.
In 2020, Alberta held the highest valuation at $146 billion, surpassing all other provinces, with Ontario coming in second at $141 billion.
However, as of 2022, the situation has changed, and Alberta's total farm real estate value has increased to $167 billion, but Ontario has now taken the lead with a valuation of $201 billion.
The chief economist for Farm Credit Canada, J.P. Gervais, points out several reasons for the shift in rankings.
He highlights the strong demand for farmland near urban areas in Ontario since the beginning of the pandemic and the challenging growing conditions in the Canadian Prairies, which have led to major droughts and poor yields in Alberta.
The data also shows that Alberta's farmland is most expensive south of Calgary, with prices reaching as high as $20,200 per acre in 2022.
On the other hand, in Ontario, farmland in the southwestern part of the province holds the highest value, with prices ranging up to about $39,000 per acre during the same year.
Despite this change in rankings, Gervais remains optimistic about the future of local agriculture in Alberta. He highlights that the demand for Canadian-grown products continues to expand, which bodes well for the industry.