The value of Canadian farmland continues on an uphill trend. The average value increased 5.5 percent last year, which is almost in line with 2019 levels.
While a number of factors influence farmland price, one economist says that the reason for the climb boils down to two things.
“It’s farm income as well as interest rates, and the farm income for grains and oilseeds and pulses-- you’re looking at 18 percent growth in farm income in 2020,” Farm Credit’s J.P. Gervais states. “Interest rates have been reaching an all-time low. So, all of that combined, 2020 was a pretty good year from a farm income standpoint.”
According to Farm Credit Canada’s latest report, British Columbia’s cultivated farmland ranges from $3,000-20,000 dollars per acre.
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