According to Farm Credit Canada (FCC) farmland prices in the country have increased an average of 12% per year since 2008, doubling the average increase seen between 2003-2007. In the six months ending December 31, 2012 farmland prices rose 10% – the fastest six month increase since the FCC began tracking prices in 1985. Prices are climbing even faster in the highest producing regions of the country. In South West Ontario prices have increased by 30%-50% per year in some counties. The average annual increase since 2010 is 25% in the region. When considering the global demand for food, commodity prices, the yield on the 10-year Canadian government bond, and more cautionary lenders, academics and experts do not see another crash happening in Canada as it did in the 1980’s when interest rates reached almost 20%.
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