J.P Gervais: Is Ontario Farmland Over Valued?

RealAgriculture.com’s Bern Tobin sat down yesterday with FCC’s chief agricultural economist Jean-Philippe Gervais to dig deep into what’s behind the recent run up in Ontario land values and where prices are headed.

In this video fresh from yesterday’s full conference day at the Southwest Agricultural Conference being held at Ridgetown, Ont., Gervais answers some heady questions, such as: What factors are driving land values? How do we measure if it’s over valued or not? Which is the bigger value driver โ€” crop receipts or interest rates?

What do you think? Is Ontario land over valued? Are interest rates set to rise? You tell us!

If you cannot see the embedded video, click here.



RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.


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One Comment

Philip Shaw

I’m not so sure about farm land prices in Ontario. It is what it is, interest rates and the high price of corn, but history tell us the last person in will still get hurt. At the present time South American crop projections are at record levels, especially in Brazil. The US is expected to produce over 14 billion bushels of corn this year. Nu crop corn values in Ontario will surely fall under $5 this spring. Yes, lots of production risk ahead, but noncommercial investors are getting out of commodities. Unmitigated increases in land prices in Ontario is unlikely if prices retreat and especially combined with interest rates going up. My first farm operating loan was at 23.25%. Compared to now, that’s crazy….but farm land dropped during that period over a decade. The road ahead, needs to be with your eyes wide open


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