Farm Credit Canada has released a mid-year farmland values update.
Compiled by Olivier Biron, Manager of Valuations and Lyne Michaud, Senior Valuations Analyst, the numbers show what the report calls 'a resilient land market'.
That despite the global pandemic resulting in several disruptions across the red meat, dairy, grain and oilseed supply chains.
The FCC report shows farmland values progressed at an average of 3.7% in the first half of 2020, in line with the past five years. However Ontario's rate of increase was well below the average at just 0.4%.
New Brunswick led the way at 6.5% followed by Alberta at 4.9%.
The authors did highlight some observations including that many of the transactions that took place this spring had been negotiated before COVID-19, and the pace of increase in land values continues to slow.
As for crop receipts, despite some of the supply chain disruptions, crop receipts climbed 1.6% in the first six months of 2020 relative to the same period in 2019. That does not include cannabis.
In summary, the authors state the full extent of the COVID-19 influence on farmland values is yet to be seen and it could take a year or more before the full impact is known.
