Average farmland value rises nearly seven per cent in 2018: Farm Credit Canada

The average value of Canadian farmland rose nearly seven per cent last year, according to a new report, but that growth rate is likely to be cut in half over 2019 amid ongoing canola trade issues with China.

The 6.6 per cent gain for 2018 comes after an 8.4 per cent jump for 2017 and 7.9 per cent for 2016, according to an annual report released Sunday evening by Farm Credit Canada, an agricultural lender.

Values have increased ever year since 1993, but recent rises are lower than those during 2011 to 2015, according to the report. In those years, average worth spiked between 10.1 per cent and 22.1 per cent.

The group estimates values will still grow over 2019, but more slowly.

“I think we’re going to see the rate of increase that we’ve had in the past, we’re gonna see them slow down,” said Jean-Philippe Gervais, vice-president and chief agricultural economist, during a media briefing Friday.

About half of 2018’s growth rate or about 3.3 per cent would be “a fair estimate given some of the trade issues and some of the farm income pressures that we’re seeing right now in the marketplace,” he said.

In March, China suspended the licences of two major exporters of canola seed, citing concerns about pests, and Chinese companies stopped buying the product from Canadian producers.

The Canola Council of Canada and others have called on the federal government to send a Canadian delegation to China to sort out the issue. While the government appears willing to send a delegation, it has not yet happened despite a federal minister saying they’ve sent a letter to their Chinese counterpart with that request.

China’s been a major market for Canadian canola and accounts for about 40 per cent of all seed, oil and meal exports, according to the council.

The dispute comes after Canadian authorities arrested Chinese tech executive, Meng Wanzhou, in Vancouver in December.

That and other market issues could get resolved soon or take some time, said Gervais, but regardless he doesn’t yet anticipate a drop in the average value of Canadian farmland this year.

In 2018, all provinces but Nova Scotia, and Newfoundland and Labrador, saw average farmland values increase, according to the report.

Quebec saw the highest gains at 8.3 per cent, while New Brunswick experienced the lowest at 1.8 per cent.

Nova Scotia saw a 4.9 per cent decrease, and Newfoundland and Labrador did not have enough publicly recorded transactions to fully assess the situation.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Stettler son accused of murdering his father

The RCMP have laid charges against a son charged with killing his… Continue reading

Canada to give $25,000 to families of each Canadian who died on Flight PS752

OTTAWA — Families of the Canadian victims on the Ukrainian passenger jet… Continue reading

Ottawa to avoid selling Trans Mountain pipeline so long as risks remain

OTTAWA — The federal government is studying the best options for Indigenous… Continue reading

Beware of Bitcoin scammers

Red Deer butcher and bistro spreading the word about bitcoin scams

RCMP arrest two suspects in November armed robbery in Innisfail

RCMP searching for Devyn Michael Hendriksen

Fashion Fridays: Look your best this year

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Jan. 16 Red Deer Branch of the Alberta Genealogical Society monthly meeting… Continue reading

Local Sports: Aussie connection paying off for RDC Kings

The RDC volleyball Kings have put together a nice pipeline with Australia.… Continue reading

Anthony Cirelli scores first career hat trick, Lightning beat Jets

Lightning 7 Jets 1 WINNIPEG — Anthony Cirelli scored his first career… Continue reading

Canada to give $25,000 to families of each Canadian who died on Flight PS752

OTTAWA — Families of the Canadian victims on the Ukrainian passenger jet… Continue reading

Ottawa to avoid selling Trans Mountain pipeline so long as risks remain

OTTAWA — The federal government is studying the best options for Indigenous… Continue reading

Henderson, Inbee Park tied for lead in LPGA season opener

LAKE BUENA VISTA, Fla. — Canada’s Brooke Henderson parlayed four birdies and… Continue reading

Most Read