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. RealAgriculture.com 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