Can You Guess What Is Happening With Farm Values In Canada?
escalation land value
In the Canadian real estate market the prices of farmland have increased considerably. The Farm Credit Canada or FCC records that at an average, the value of a farmland has risen by 7.7 % in the last 6 months of 2007. This is the highest recorded percentage since 2002.
The
FCC report states that
"most provinces continue to see growth in farmland values, with British
Columbia experiencing a huge 14.5 per cent increase." According to it
"Overall increases are consistent with an upward trend in land values
since January 2000." The value has increased as there is a high demand
for
good land suitable for the cultivation of grapes in B.C. The report
also states
that "there is a noticed increase in demand for small wineries as well
as
wineries consolidating to achieve economies of scale and secure their
own
production base."
The company also states that "values continue to increase throughout central and northern Alberta." This makes Alberta the second most popular province in terms of greatly valued farmlands. Here the values have soared up to 10.3%. The farmers are moving to other areas in the province and selling their lands at exorbitant rates. Other areas that have witnessed a similar increase in the value of farmlands are Saskatchewan, Nova Scotia, Manitoba, Quebec, and Toronto.