Ontario farmland prices increased everywhere. Overall, Ontario farmland prices were up 9.4 per cent. That’s the third highest percentage price increase in Canada, trailing only Saskatchewan’s 10.2 per cent and Nova Scotia’s 9.5 per cent. Ontario was up 4.4 per cent in 2016.
Farmland values soared from 2011 to 2014, with double-digit percentage increases each year, including a whopping 30.1 per cent in 2012.
J.P. Gervais, FCC’s chief agricultural economist, does not believe 2017’s large increase is the start of a new trend. He noted that the majority of transactions were in the first six months of 2017, when interest rates were at a record low. When rates went up in the second half of the year, sales slowed down. He expected interest rates to increase at least once in 2018.
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