Driven by record high commodity prices and record low interest rates farmland prices in Southern and Midwestern Ontario have doubled in only three years. Since 2010 farmland prices in Bruce County have increased 37.5% per year, in Lambton country 36.7% per year, and in Elgin and Huron Counties prices have increased approximately 27% per year resulting in price increases of $8,000 to $10,000 per acre. Average land prices in Middlesex County have increased from an average of $6,000 per acre to $11,000 per acre today. Over the past year land price increases have slowed to 6% as commodity prices cool. Analysts believe that these prices will remain and that farmland will not see a crash but rather a leveling off if interest rates increase.
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