The average value of Canadian farmland increased 5.6% during the last six months of 2008. That's according to the semi-annual Farm Credit Canada (FCC) Farmland Values Report. This is the third-highest percentage increase since 1997 and is similar to the 5.8% increase noted for the first six months of 2008.
Farmland values rose in every province except Prince Edward Island, which remained unchanged. Saskatchewan experienced the strongest percentage increase at 8.8%, followed by New Brunswick at 6.3% and Quebec with a 5.9% gain. Three provinces reported similar percentage increases: Nova Scotia (4.3%), Manitoba (4.2%), Newfoundland and Labrador (4%). The two western provinces show similar gains. British Columbia was up 2.3% while Alberta reported a 2.2% increase. Ontario values rose 1.9%.
"Even though there have been adjustments to prices in the grains and oilseeds sector, producers remain optimistic about the future of agriculture," says Remi Lemoine, FCC Senior VP Portfolio and Credit Risk. "According to research conducted late last year with our FCC Vision panel, 22% of respondents plan on expanding their operations in the next five years."
FCC is Canada's largest provider of business and financial services to farms and agribusinesses.
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