Price of farmland rises, but not as much as previous years
The price of farmland in Canada has reached new heights.
“For 2023, the average increase across the country was 11.5 per cent, so quite a bit of an increase,” explained Farm Credit Canada’s Chief Economist, J.P. Gervais.
In Ontario, farmland prices increased 10.5 per cent, down from the previous three years, which saw yearly increases at or over 20 per cent.
In our region, an acre of farmland now sells for $19,200 per acre in midwestern Ontario, up 8.5 per cent from 2022. In southwestern Ontario, it’s $23,100 to buy an acre of farmland, up 13.3 per cent.
Despite high interest rates, and some middling commodity prices, farmland continues to be very valuable.
“Supply’s tight. It’s not just that we’re not making any more farmland, it’s that there’s not a whole lot available for sale,” said Gervais.
Farmland is seen for sale near Belgrave, Ont. on March 18, 2024. (Scott Miller/CTV News London)
The steady increase in the cost of farmland is great for farmers that own it, but not so great for young farmers trying to get into the industry.
To buy 100 acres of farmland in southwestern Ontario, a small farm by today’s standards, it would cost $2.3 million just for the land. That does not include the house, barn, or buildings — just the dirt.
“I know you would need some help to get into the farming, because it is an expensive industry to get into because you need a lot of base money to get going. It’s a difficult start,” said Bruce County Federation of Agriculture President, Chris Cossitt.
“I don’t think farmland will see any declines. But the bottom line is that we are at a record high when it comes to affordability. Land is the least affordable, it has ever been for a farming operation,” said Gervais.
Gervais expects high interest rates and lower commodity prices to keep the increase in the cost of farmland at or below 2023’s rate of 11.5 per cent.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.