Ontario Grain Farmer June/July 2021

Toronto $0 – $2,000 $2,001 – $3,000 $3,001 – $5,000 $5,001 – $8,000 $8,001 – $10,000 $10,001 – $15,000 $15,001 – $25,000 $25,001+ 22 ALTHOUGH MANY ASPECTS of our lives and the national economy were negatively affected by the COVID-19 pandemic in 2021, the value of Canadian farmland — and real estate in general across the country — was not one of them. The growth in Ontario farmland values was a little under the national average, but still strong, and that growth is expected to continue. According to Farm Credit Canada’s (FCC) new Farmland Values Report, average values across the nation rose by 5.4 per cent in 2020, slightly more than the 5.2 per cent increase reported in 2019. The total number of farmland parcel sales was similar to those of the past few years. The highest provincial increases in 2020 were recorded in British Columbia and Quebec, with averages of eight per cent and 7.3 per cent respectively. Alberta followed with an increase of six per cent, and Saskatchewan mirrored the national average increase of 5.4 per cent. Manitoba had an increase of 3.6 per cent, and there was an average increase of 2.3 per cent for Prince Edward Island, 1.6 per cent for Nova Scotia, and 1.3 per cent for New Brunswick. For the fifth year in row, there was an insufficient number of publicly-reported sales in Newfoundland & Labrador to do a full assessment. ONTARIO In Ontario, average farmland values increased by 4.7 per cent in 2020, compared to 6.7 per cent in 2019. Values varied from stable to increasing due to high demand and limited supply of available land in many areas of the province. Demand from large, intensive, supply-managed farm operations, grain farmers, and part-time farmers all played a role in land value increases. Farmland on the outskirts of urban centres or within close commuting distance to larger urban areas also drew more demand from part-time farmers, rural residents, and private investors. “Private investors can include institutional investors, typically leasing back the land to local farmers,” explains Stacey Wilks, FCC senior appraiser for Ontario. “These can also be individual investors holding land as part of an investment portfolio.” The most significant growth in average farmland values was observed in the Central East and Midwestern regions, which both reported 8.9 per cent increases, while the Central West had an increase of 8.2 per cent. Demand grew in areas with limited supply and there was some sale of several smaller rural parcels. However, there were some small decreases in farmland value in parts of these regions such as in the northern section of Central West region. The most significant increases in Central East were experienced in the traditionally lower-priced areas located in the most eastern part of the area. There was an overall increase of 5.5 per cent in the South East region, with limited supply and stable demand. Growth in value was mostly observed in the eastern and southern parts of this area. The Eastern region had a 6.4 per cent increase, compared to a 2.3 per cent increase in 2019. Increases were experienced mostly in the lower-priced areas of the region, with more stable values in higher-end areas. “In comparison to the other regions in Ontario, some areas in the Eastern Region have some of the lowest-priced farmland in Ontario,” says Wilks. “There is limited sales data available in the area, suggesting there is a limited supply. There has been a trend in other areas of Ontario that have seen multi-generational communities move from higher-priced areas, where there is limited supply, to lower-priced areas, where they are able to ONTARIO FARMLAND REGIONS. TABLE AND MAP COURTESY OF FARM CREDIT CANADA. expand their farming operations and set up children to farm.” In terms of whether any information is available on how much Ontario farmland was sold in 2020 in each region, and whether some of this land may be put to other uses than farming, Wilks notes that while FCC aims to capture as many farmland sales as Treena Hein Farmland values STRONG INCREASES ACROSS CANADA Industry News