The worth of Canadian farmland rose 11.5% in 2023, a brand new report by agriculture lending agency Farm Credit score Canada has discovered. 

Chief economist J.P. Gervais stated whereas that’s a slight slowdown from the expansion in 2022, it’s nonetheless a speedy tempo given cooling financial circumstances total.

“Farmland costs have continued to extend at a speedy tempo over the past couple of years, even when financial circumstances prompt the expansion ought to sluggish,” stated Gervais in a launch. 

“A restricted provide of obtainable farmland mixed with a sturdy demand from farm operations is driving that development.”

The lender’s newest report on farmland values discovered that they elevated in each province tracked aside from British Columbia.

That province noticed a mean decline of three.1%, but it surely nonetheless has the best common farmland values within the nation. 

The variety of farmland transactions is estimated to have declined barely final 12 months. 

Farmers are at the moment being cautious in relation to investing of their operations, the report stated, with anticipated weaker revenues and elevated borrowing and enter prices.

“Buying land within the 12 months forward will include cautious consideration of the worth and timing. Some operations will choose to attend and see the place land values will settle whereas others could transfer extra shortly ought to adjoining land turn out to be accessible, or just because it suits their strategic enterprise plans,” Gervais stated. 

Younger producers face a difficult setting as farmland turns into much less and fewer inexpensive, stated Gervais. This may increasingly expose some farm operations to extra threat amid greater rental charges and enter prices, he stated. 

The very best will increase in common farmland worth final 12 months have been in Saskatchewan, Quebec, Manitoba and Ontario. 

This report by The Canadian Press was first revealed March 12, 2024.