ECONOMY. On average, the value of agricultural land increased by 5.4% in Quebec during the first half of 2024.
These statistics come from a review conducted by Farm Credit Canada (FCC). Between July 2023 and June 2024, the increase was 9.6% nationwide, which represents a slowdown compared to the previous period.
“The value of agricultural land has increased at a slower pace, but such growth in six months remains a very high figure,” notes FCC chief economist Jean-Philippe Gervais.
The highest average increases are found in Quebec and Saskatchewan (7.4%).
However, rising borrowing costs, falling commodity prices and rising land prices have not deterred some buyers. Looking forward, lower borrowing costs and the limited supply of available farmland should support the continuation of current high farmland prices.
“The continued increase in farmland values highlights the positive and strong long-term outlook for the agricultural sector. As we move forward into the second half of 2024, trends in farm income and interest rates will be key indicators of changes in farmland values,” says Gervais.
The latter further noted that farm cash receipts are expected to decline overall by 3.3% in 2024, as commodity prices show some signs of rapid recovery, which could limit the willingness and ability of farmers to assign higher values to agricultural land. »
“Understanding economic and financial trends is essential to making informed decisions. FCC is committed to providing the industry with data-driven intelligence that can help producers and investors navigate the current economic disruptions,” concludes economist Jean-Philippe Gervais.
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