The average value of farmland in Canada increased by three per cent in the first half of 2010, following gains of 3.6 and 2.9 per cent in the two previous reporting periods, says the Farm Credit Canada (FCC) Farmland Values Report.

Farmland values remained the same or increased in each province except British Columbia. Ontario experienced the highest average increase at 4.3 per cent.

“The prices paid for farmland today often reflect the conditions and events experienced by producers over the past six to 12 months. It’s important for buyers to consider those things in determining whether to purchase and what price to pay,” says Michael Hoffort, FCC senior vice-president. “Although some commonalities exist, this report shows that each province and even each region had a unique set of factors that contributed to the change in farmland values.”

Jean-Philippe Gervais, FCC senior agriculture economist, says, “Competition for highly productive farmland is strong in parts of the country. We are seeing various types of land ownership, which provides farmers with a choice about how they want to operate their business. Some producers choose not to own land to keep capital costs in check or because they can afford to rent better quality land closer to them. This diversity, and the fact that land is still a desirable asset, demonstrates the strength of agriculture over the long term, which is good for the industry.”

The full report can be viewed at www.farmlandvalues.ca.