General Rise in Canadian Farmland Values

OTTAWA - Oct 3/05 - SNS -- Canadian farmland values increased an average 1.6% during the first half of 2005, compared to a 2.2% increase during the last half of 2004, but 0.1% higher than the last half of 2003, according to Farm Credit Canada (FCC).

The fastest growth in farmland values was recorded in British Columbia, up 6.5%. It was followed by Alberta, which posted a 3.2% increase, and Ontario, where land values rose 1.8%.

New Brunswick was the only province recording a decline in average farmland values, slipping 0.3% the first half of this year. Land values were unchanged in Newfoundland and Prince Edward Island.

     Canadian Farmland Value Changes

           Last Half    First Half
              2004         2005
B.C.         +5.0%        +6.5%
Alta.        +4.4%        +3.2%
Sask.        +0.8%        +0.8%
Man.         +2.4%        +1.6%
Ont.         +3.0%        +1.8%
Qué.         +1.8%         0.4%
N.B.         -0.3%        -0.3%
P.E.I.   No change    No change
N.S.     No change        +0.4%
NFLD.        +3.8%    No change
Canada       +2.2%        +1.6%

Land values in Saskatchewan rose just 0.,8% the first half of the year. FCC said, "There are pockets of strong demand in Saskatchewan as farmers expand and take advantage of economies of scale. Other areas are seeing limited trading as owners feel the long-term trend is upward and are reluctant to accept less than previous prices.

"An early frost damaged many crops in Saskatchewan last year. This has resulted in cash flow challenges compounded by low commodity prices and increasing input costs. A cautious attitude prevails with the hope of an above average crop coming."