BC farmland values see strong growth

BC farmland values returned to a growth trajectory in the 12 months ended June 2024, according to Farm Credit Canada.

Province-wide values grew by 6.6% in June 2024 versus a year earlier, reversing the 3.1% decline the federally backed farm lender reported for the province in 2023.

BC was the only province to report a decline last year, driven in part by downward pressure from high interest rates and the right-sizing of holdings in the Lower Mainland by dairy producers and others.

But the latest figures show that fortunes turned around in the latter half of 2023 and in the first half of 2024. Gains over the past 12 months put values back on a growth track, though the momentum slowed in the first half of 2024 with a less aggressive 5% gain over the period. Nevertheless, the increase erased the declines seen in 2023 and set a new high for the province. The average value is now double where it stood at the end of 2012.

The strong growth came in advance of July 1, the date BC Assessment uses to set valuations for the coming year’s tax roll.

Value growth in BC was the strongest in the West after Saskatchewan, which reported a 7.4% gain.

“Elevated borrowing costs, lower commodity prices and the increased price of land hasn’t deterred some buyers,” FCC reported. “Looking ahead, declining borrowing costs and a limited supply of available farmland should sustain the current high prices for farmland.”