Canadian farmland values continue to soften amid uncertainty, FCC reports

To The Haldimand Press

The average value of Canadian farmland increased by 5.2% in 2019, the smallest increase over the past decade, according to the latest Farm Credit Canada (FCC) Farmland Values Report.

The 2019 increase follows gains of 8.4 and 6.6% in 2017 and 2018, respectively, and becomes part of a five-year trend of softening growth in average farmland values. In Ontario, average farmland values increased by 6.7% in 2019, following gains of 3.6% in 2018 and 9.4% in 2017.

“The days of sharp increases in farmland values continue to be replaced by more modest growth,” said JP Gervais, FCC’s Chief Agricultural Economist. “Changes in commodity prices, uncertainty around global trade, and some challenging weather conditions may be tapping the brakes on an otherwise healthy and robust Canadian agriculture industry.”