Are Farmers Paying Too Much For Land?

by

Opinion

Farm Credit Canada recently released its latest farmland values (for January to June, 2012). The national average increase of 8.6% semi-annually is staggering, especially considering that it follows on the heels of a 6.9% increase from the six months previous. I have to ask — if this trend of increasing farmland prices continues, what will the long-term implications be for farmers? Appreciating land values can be a good thing, and I’m certainly not begrudging farmers some asset growth. It’s well known that farmland is the largest item on the farm balance sheet, and for those nearing retirement, rising land prices…

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