The average value of Ontario farmland went up about 6 and a half per cent in 2015.
Farm Credit Canada says that compared to a 12 point 4 per cent increase in 2014 and a 15 point 9 per cent increase in 2013.
Nationally - the average value of farmland was up 10 point 1 per cent in 2015.
It had gone up 14 point 3 per cent in 2014 and 22 point 1 per cent in 2013.
FCC Economist J. P. Gervais says some of the key factors influencing farmland values are beginning to change.
He points out we're seeing lower commodity prices, although they're currently being offset by low interest rates and a weak dollar.
FCC Chief Risk Officer Corinna Mitchell-Beaudin suggests producers make sure they account for a possible 'softening' of farmland values and future interest rate increases in their risk management plans.
Some other points in the FCC's annual Farmland Values Report:
- Manitoba reported the biggest increase in farmland values at 12 point 4 per cent.
- New Brunswick saw the smallest increase at 4 point 6 per cent.
- The most significant average farmland value increases in Ontario were in Kent , Oxford, Haldimand, Stormont and Prince Edward counties.
- Northern Ontario demand was primarily for large acreages and existing dairy operations, with buyers including southern Ontario farmers looking to purchase cash crop land or local dairy farmers wanting to expand.
- A study of Iowa farmland values saw high quality cropland averaging about 91 hundred dollars an acre in March, down from about 95 hundred in September - in U-S dollars.
