Farmland Values Report

2015 Farmland Values Report Ontario

Canada

The average value of Canadian farmland increased 10.1% in 2015, following gains of 14.3% in 2014 and 22.1% in 2013. Overall, the average national values have continued to rise since 1993. In all provinces, farmland values increased. Manitoba experienced the highest average increase at 12.4%, followed by Alberta at 11.6%, Quebec at 9.6% and Saskatchewan at 9.4%. The average increase in Prince Edward Island was 8.5%, followed by Newfoundland and Labrador at 7.7%. Ontario saw an increase of 6.6% and British Columbia saw average land values rise by 6.5%. Nova Scotia saw values rise by 6.3%, followed by New Brunswick at 4.6%. When looking at the national results, it is important to remember the reported number is an average. This year in particular, the differences between regions within each province varied a lot. Therefore, despite an increase in average results, farmland values have not appreciated everywhere.

Ontario

The average value of Ontario farmland increased 6.6% in 2015, following gains of 12.4% in 2014 and 15.9% in 2013. Values in the province have continued to rise since 1988. The provincial average does not reflect all areas of Ontario. Some regions continued to see significant increases, some experienced greater price stability and in a few areas, values decreased. The most significant increases were observed in Haldimand, Kent, Oxford, Stormont and Prince Edward counties. However, producers who wanted to expand their operations were showing more patience. Properties remained listed longer than a year ago, when sales occurred prior to the properties even being listed. This change in behaviour contributed to some decreases but also greater stability in many areas. In northern Ontario, demand was primarily for large acreages and existing dairy operations. Buyers included southern Ontario farmers looking to purchase cash crop land or local dairy farmers wanting to expand their operations. Producers in eastern Ontario continued to expand, which contributed to an increase in land values in that region. Land values were also pushed higher as a result of expanding transportation infrastructure around the greater Toronto area.

 



2014 Farmland Values Report Ontario

Ontario farmland values increased an average of 12.4% in 2014, following gains of 15.9% in 2013 and 30.1% in 2012. Average farmland values in the province have continued to rise since 1988. In several areas of the province, demand for farmland significantly outweighed the supply, creating competition for available land. This, coupled with low interest rates, appeared to have played a role in rising values. Demand came from many sectors, including large intensive livestock enterprises needing land for manure management and cropping requirements. Non-agricultural buyers in southwestern Ontario continued to purchase farmland in select areas, creating greater overall competition for available land. Farmland in southern and central Ontario continued to be in high demand due to the availability of soil types that support high value crops. Producers in eastern Ontario continued to expand, purchasing land in the immediate area and in neighbouring locations. Northern and eastern regions also saw prices rise as buyers from high-priced areas in southern and southwestern areas moved north in search of lower- priced land. Markets in the north appeared to be dominated by a small number of buyers who acquired land, contributing to the increase in price. However, while most areas saw moderate to significant increases, there were some that saw slight declines or no change in value.Sales in the province were accomplished through a mix of transactions including real estate brokered, property auction and land sold through the tendering process.

 

2014

Farmland Values Report

This report covers the period from January 1 to December 31, 2014. For more information: 1-888-332-3301 or farmland-values@fcc-fac.ca

This report was published on April 13, 2015.

Translate »