Land values slow down

BC farmland values are not rising as fast as they did last year, according to Farm Credit Canada.

A review of transactions this year to date indicates that values have increased just 2.7% since last year. This spring, FCC reported that farmland values increased 6.7% in 2018 versus 2017. Double-digit increases were seen on Vancouver Island and in the Cariboo-Chilcotin regions.

“We appear to be moving into a time of cautious buying, where producers are focusing more on improving productivity and building resilience in their operations,” says J.P. Gervais, chief agricultural economist with the federal lending agency.

The forecast of moderate increases in value reflect the slower pace of sales.

Two weeks ago, Country Life in BC reported statistics from the BC Ministry of Finance indicating the farm property sales were down 2% in the first six months of this year versus the same period last year.

Nevertheless, farmland values in BC will continue to be among the highest in Canada, with the Lower Mainland seeing prices in the range of $220,000 an acre.