Land prices seem to have endless upward momentum. Farm Credit Canada’s latest land value estimates suggest some very impressive gains in values when taken on their own, but put those numbers over a three to five year span, and the bull run on prices seems unstoppable and nearly unbelievable in some cases.

But it would be very foolhardy indeed to assume this growth will continue as a constant. Just like urbanites shouldn’t count on their home values doubling over and over again, farmers too need to put this value inflation in perspective and plan for the eventual flattening of prices and,potentially, a drop.

FCC’s lead economist J.P. Gervais took the time to discuss this hot topic with Shaun Haney. wanted to know if the drivers behind these leaps in value are intact, how long the push may continue and whether or not this positive line has run out of steam. Gervais’s insight is well worth the listen.

If you cannot see the below embedded audio player, CLICK HERE

2 thoughts on “FCC Land Value Report Spring 2013 – J.P. Gervais, Farm Credit Canada

  1. Grain has rode this pony all the way to the top! I look at cattle producers and what they have to overcome. Cattle in our country is almost all but lost. Bse took care of a few and high grain prices have knocked off the rest! What happens when it’s not a soft landing? Cattle men had to lick their wounds and make vital financial decisions in order to keep operating. If people really thought of how land makes them money instead of “I must buy this just so Jim doesn’t get it”! That seem like what producers are doing! They don’t make anymore land so I better buy whatever comes for sale. If it all goes south and land drops by double digits just remember that it’s nobody else’s fault but yours. The world today is lead by speculation, ether you’re right or you’re wrong!

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