Canadian farmland value to rise 11.5 percent in 2023: report

 

Agricultural lending company Farm Credit Canada reports that the value of Canadian farmland will increase by 11.5 percent in 2023. Chief Economist JP Gervais said prices were still rising at a brisk pace given overall economic conditions, although there was a slight reduction from growth in 2022. Limited supply of available agricultural land and strong demand from agricultural activities are driving the growth, he said. The report found that agricultural land values increased in all provinces except British Columbia.

BC saw an average decline of 3.1 percent. However, BC has the highest average value of agricultural land in the country.

It is estimated that there has been a slight decrease in the number of agricultural land transactions last year. The report states that farmers are currently cautious while investing in agricultural land deals and expect higher credit and input costs.