The average value of farmland in Canada continued to rise at a double-digit rate in 2015, according to Farm Credit Canada’s annual farmland values report published on Monday.
FCC says “this year in particular, the differences between regions within each province varied a lot,” but the average value of farmland across the country rose by 10.1%.
While still rising, the national average rate is down from gains of 14.3% in 2014 and 22.1% in 2013.
The weaker Canadian dollar in 2015 supported the upward trend, noted J.P. Gervais, FCC’s chief agricultural economist.
“We’re now seeing lower commodity prices offset by low interest rates and a weak dollar. The weak loonie not only makes our exports more competitive, but helps producers receive a better price for their commodities that are mainly priced in U.S. dollars,” he said. “It becomes a real tug-of-war between competing factors that influence farmland values.”
Manitoba saw the highest increase, at 12.4%, followed by Alberta at 11.6%, Quebec at 9.6% and Saskatchewan at 9.4%.
The average increase in PEI was 8.5%, followed by Newfoundland and Labrador at 7.7%, Ontario at 6.6% and BC at 6.5%. Nova Scotia saw land values rise by 6.3%, while New Brunswick saw a 4.6% increase.
Read the entire FCC 2015 Farmland Values Report and how it’s compiled here.