Farmland values in Manitoba continue to increase.
Farm Credit Canada reports values increased by 3.4 percent in the first half of 2010, based on data from actual land sales made between January 1st, 2010 and June 30th, 2010.
The increase follows jumps of 5.9 and 5.5 percent in the previous two reporting periods. Does this mean the market for farmland is cooling off? "It's hard to say," says Claude Jacques, appraiser with FCC. "The values are mainly from the grain and special crop areas of the province. Some of the other areas, such as the Interlake, have seen no increase in values.
While there are some non-farming investors involved, Jacques says they are not the main reason for the increase. "Quite a few producers are still expanding their operations and that's the main driver behind it," he says.
Manitoba farmland values have increased by an average of 0.8 percent per month for the last year.
National values were up 3.0 percent for the first half of the year.
~ Tuesday, October 5, 2010 ~