Farmland continues to outperform most other assets

Farmland continues to outperform most other assets when it comes to growth in value.

Farmland continues to outperform most other assets when it comes to growth in value.

Farm Credit Canada’s latest farmland values report says the average price of Alberta farmland jumped by 5.7 per cent in the first half of 2012. That followed increases of four per cent in the second half of 2011 and 4.5 per cent during the first six months.

FCC said farmland prices in Central Alberta were positively affected by strong cattle and grain returns.

The appreciation of farmland was even more rapid elsewhere in the country, said the report, with the average national increase during the first half of 2012 hitting 8.6 per cent. That’s the biggest improvement since FCC began issuing farmland values reports in 1984.

Last year, the Canadian figure was 7.4 per cent in the second half and 6.9 per cent in the first.

Ontario had the steepest rise in farmland values, with its average jumping 16.3 per cent in the January-to-June period.

Manitoba was next at 10.3 per cent, followed by Saskatchewan at 9.1 per cent, Quebec at 6.7 per cent, Alberta at 5.7 per cent, Prince Edward Island at 3.1 per cent and Nova Scotia at 2.8 per cent. Average prices in New Brunswick and Newfoundland and Labrador were unchanged from the second half of 2011, while British Columbia was down 0.3 per cent.

“Consolidation of farms in some provinces is an ongoing trend as producers seek to increase their land base and take advantage of efficiencies,” said Michael Hoffort, FCC’s senior vice-president of portfolio and credit risk.

FCC attributed the rising values to high crop receipts and low interest rates. It noted that property going on the market in some areas is attracting multiple bids.

A month ago, Re/Max’s farm market trends report said farmland prices in Central Alberta had climbed 20 to 25 per cent over the preceding year, the result of strong ag commodity prices and the finite supply of land. It said dryland in the region was ranging in price from $2,000 to $4,500 per acre, with the average around $3,300.

Re/Max said this trend was consistent across Canada, with low interest rates and more efficient farm equipment other factors pushing demand and prices up. It added that those prices are likely to continue to rise.

“The conditions that make for a seller’s market are expected to remain in place moving forward, and the current low interest rate and high commodity price environment may still leave room for further price growth into 2013.”

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

Just Posted

A commercial building, housing two businesses, in Stettler was completed destroyed by a fire Thursday. (Photo courtesy Stettler Regional Fire Department)
Fire destroys commercial building in Stettler

A commercial building just outside of Stettler was destroyed by a fire… Continue reading

Almost half of Alberta's population should have at least one shot by the end of May said Premier Jason Kenney Monday morning.
Alberta poised for economic ‘renaissance’ after pandemic, says premier

Economic recovery is Alberta’s “next big challenge,” says the province’s premier. “It’s… Continue reading

Red Deer has a new welcome sign at the south end at the new entrance from Hwy 2. (Photo by SUSAN ZIELINSKI/Advocate staff)
Red Deer ranks 241st on MacLean’s Best Communities list

The list features 415 Canadian communities

Dr. Wayne John Edwards, 66, died Tuesday at Chinook Regional Hospital. (Cornerstone Funeral Home)
Lethbridge doctor becomes 7th Alberta health-care worker to die from COVID-19

Dr. Wayne John Edwards, who was 66, died Tuesday at the Chinook Regional Hospital in the southern Alberta city

A FedEx worker loads the 255,600 doses of the Moderna COVID‑19 vaccine which came from Europe into a freezer trailer to be transported during the COVID-19 pandemic at Pearson International Airport in Toronto on Wednesday, March 24, 2021. THE CANADIAN PRESS/Nathan Denette
Canada’s incoming supply of Moderna vaccine slashed in half through end of April

Procurement Minister Anita Anand says Canada’s incoming vaccine supply from Moderna will… Continue reading

Red Deer Public Schools will not pilot the new draft curriculum at its elementary schools. (File photo contributed by Red Deer Public Schools)
UPDATED: Red Deer Public Schools says no to piloting new curriculum

Alberta Teachers’ Association support school boards

Have an opinion you'd like to share? Submit letters to the editor through our website, via email or the postal service. (Heather Colpitts/Black Press Media)
Letter: MLAs who are against tougher restrictions have no plan for consequences

The group of UCP MLAs pushing to end lockdowns are exacerbating what… Continue reading

Former Parti Quebecois leader Andre Boisclair leaves the police station after being charged with two counts of sexual assault dating back to 2014, Friday, May 29, 2020, in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Preliminary inquiry in September for ex-PQ leader Boisclair charged with sex assault

MONTREAL — Former Parti Quebecois leader Andre Boisclair will have a preliminary… Continue reading

Three vials of the Moderna COVID-19 Vaccine are pictured in a new coronavirus, COVID-19, vaccination center at the Velodrome-Stadium in Berlin, Germany, Wednesday, Feb. 17, 2021. THE CANADIAN PRESS/AP/Michael Sohn, pool
Trudeau sending help to Ontario as Pfizer vaccine supply bolstered by 8 million doses

Prime Minister Justin Trudeau says more doses of COVID-19 vaccines are coming… Continue reading

Teachers demonstrate outside a school during a morning walk out in Longueuil, Que., Wednesday, April 14, 2021. Around 73,000 Quebec teachers say they will walk off the job for several hours on April 27. THE CANADIAN PRESS/Paul Chiasson
73,000 Quebec teachers plan to walk off the job for more than two hours April 27

MONTREAL — Around 73,000 Quebec teachers say they will walk off the… Continue reading

People line up in the rain for a COVID-19 vaccine at a pop-up clinic at the Masjid Darus Salaam in the Thorncliffe Park neighbourhood in Toronto on Sunday, April 11, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario science advisers urge six-week stay-home order as province pleads for help

TORONTO — Ontario’s science advisers called for a six-week stay-at-home order and… Continue reading

Dr. Wayne John Edwards, 66, died Tuesday at Chinook Regional Hospital. (Cornerstone Funeral Home)
Lethbridge doctor becomes 7th Alberta health-care worker to die from COVID-19

Dr. Wayne John Edwards, who was 66, died Tuesday at the Chinook Regional Hospital in the southern Alberta city

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on Friday, March 20, 2020. Alberta is set to join three other provinces in exploring the feasibility of small modular reactors as a clean energy option. THE CANADIAN PRESS/Jason Franson
Students in Alberta town ready to return to school after quarantining

ATHABASCA, Alta. — A superintendent of schools in northern Alberta says the… Continue reading

Britain’s Prince Charles, with Camilla, Duchess of Cornwall, visits the gardens of Marlborough House, London, Thursday April 15, 2021, to look at the flowers and messages left by members of the public outside Buckingham Palace, following the death of Prince Philip. (Jeremy Selwyn/Pool via AP)
Princes William, Harry won’t walk side-by-side at funeral

LONDON — Prince William and Prince Harry won’t walk side-by-side Saturday as… Continue reading

Most Read