The value of farmland continues to rise
Despite the pandemic, the value of Canada’s farmland continues to rise across Ontario, according to the latest report from Farm Credit Canada.
The average value of agricultural land increased by 5.4% in 2020 across the country, a slight increase from the 5.2% increase in 2019.
The largest gains were made in British Columbia and Quebec, while Ontario and Manitoba experienced the slowest growth in land values.
According to the president of the Kent Federation of Agriculture, Jay Cunningham, the average price of farmland in Chatham-Kent is around $ 15,000 an acre, but this can vary widely depending on the location of the land in the municipality.
There aren’t many farms for sale either, Cunningham says, adding that it’s hard to know what’s for sale as many deals are done privately.
In many cases, Cunningham says, the real estate companies are not involved. When a farm changes hands, it can be sold to a family member, or neighbor, or possibly to a farmer who has historically rented and worked the land.
“It’s hard to judge how many are for sale,” Cunningham says.
As of Monday, Realtor.ca only had nine farm properties for sale in Chatham-Kent, with the most expensive at $ 4.2 million.
The 130-acre property, without buildings, is located on the Queen’s Line near Chatham.
Farm newspapers and the media also feature farms for sale, often through competitive bidding.
While land is a farmer’s most valuable asset, Cunningham says value is only realized if the property is sold.
Ontario’s farmland value gains were 4.7% in 2020, 6.7% in 2019 and 3.6% in 2018.