The value of farmland continues to increase in most parts of Canada.
The Farm Credit Canada (FCC) mid-year review noted prices of agricultural land increased by 15.6 per cent in Ontario, 14.8 per cent in Prince Edward Island, and 10.3 per cent in Quebec. Ontario’s average increase was bolstered by the central regions of the province, where competition for arable land is strong but supply is limited.
Saskatchewan and Alberta have a higher percentage of arable land and saw a slower pace increase in land values. Saskatchewan’s farmland price jumped 8.4 per cent, which was closest to the national average increase of 8.1 per cent.
More modest increases were reported in the rest of the provinces. There weren’t enough transactions in the Yukon, Nunavut, Newfoundland, and Labrador to fully assess farmland values.