Farmers Forum staff
The average value for cultivated land in Ontario increased by 19.4 % in 2022, according to the Farm Credit Canada farmland values report published on March 14.
That was the highest reported increase among all provinces. In 2021, Ontario experienced a record increase of 22.2 %, following a modest increase of 4.7 % in 2020.
FCC reported that demand, coupled with limited supply in many areas, led to higher prices.
Demand for land was high from large, intensive, supply-managed farm operations, cash crop producers, hobby farmers and investors in areas close to large urban centres, the report said.
Eastern Ontario saw land value increases of 14.9 %, which is below the provincial average. There was an influx of producers selling land in Western Ontario and settling in the east where land parcels were less expensive. Eastern Ontario farmland prices averaged $11,100 per acre. Farmland prices range from $5,700 per acre to $18,900 per acre, the report said.
Some areas of Western Ontario saw price increase by as much as 23 per cent on average last year. Prices were highest from around St. Thomas and Tillsonburg, north to about Harriston and West to Lake Huron, with an average price of $28,900 per acre.
Seeking less expensive land, there was an exodus of producers selling land in Western Ontario and settling in Eastern Ontario where farmland prices averaged $11,100 per acre.
