The average value of farmland in Alberta increased by 2.2 per cent in the second half of 2008, according to the semi-annual Farm Credit Canada (FCC) Farmland Values Report.
This is the third consecutive semi-annual increase and follows increases of 6.7 and 10.3 per cent in the previous two reporting periods. The complete report is available at www.FarmlandValues.ca.
“While we’ve seen volatility in market and input prices, land values across Canada have either increased or remained steady,” says Rémi Lemoine, FCC senior VP, portfolio and credit risk. “This is good news for producers who view their land as an asset for production and also as an investment. We also know that the value of land is a lagging indicator, and this report reflects findings from last fall, so we are following the trends closely.”
Farmland values data, published in this one-of-a-kind report since 1984, helps Canadians make farm business management decisions and informed choices about acquiring, holding or selling agriculture land.
Overall, the average value of Canadian farmland increased 5.6 per cent during the last six months of 2008. This is the third-highest percentage increase since 1997 and it is nearly the same as the 5.8 per cent increase noted in the fall 2008 report.
“Even though there have been adjustments to prices in the grains and oilseeds sector, producers remain optimistic about the future of agriculture,” explains Lemoine. “According to research conducted late last year with our FCC Vision panel, 22 per cent of respondents plan on expanding their operations in the next five years.” Complete Vision Panel survey results are available at www.FCCvision.ca.