Canadian farmland value rises

Values of Canadian farmland rose about 2% in the last half of 2010 as grain prices soared, continuing a steady increase during the past decade, according to a report by Canada’s top farm lender.

The increase, however, was the slowest half-year growth in more than four years, stated the report which was released late Monday.

Some of the same factors that have driven up grain and oilseed prices, such as rising incomes and population growth in developing countries, are also lifting farmland values, according to Jean-Philippe Gervais, senior agriculture economist at Farm Credit Canada (FCC).

Canada is the leading exporter of spring wheat and canola and third-biggest shipper of beef and pork.

Source: Financial Post