69 Better Farming | December 2024 Ontario Ag Real Estate same range, 5.2 per cent, 5.0 per cent, and 4.6 per cent, respectively. Manitoba recorded a growth rate of 3.9 per cent, closely followed by Nova Scotia at 3.8 per cent. Ontario recorded a lower increase at 2.1 per cent, with Prince Edward Island concluding the list at 1.7 per cent. Elevated borrowing costs, lower commodity prices and the increased price of land hasn’t deterred some buyers. Looking ahead, declining borrowing costs and a limited supply of available farmland should sustain the current high prices for farmland. “The continued rise in farmland values highlights a positive and robust long-term outlook for the agriculture sector. As we move into the latter half of 2024, the trends in farm revenues and interest rates will be key indicators of where farmland values might head next,” said Gervais. Gervais noted that farm cash receipts are projected to decline overall in 2024 by 3.3 per cent as commodity prices show few signs of a quick rebound, possibly limiting farmers’ willingness and capacity to assign higher valuations to farmland. “Understanding economic and financial trends is essential for making informed decisions. FCC is committed to providing the industry with data-driven insights that can help producers and investors navigate the current economic headwinds.” For more analysis, visit FCC Economics at fcc.ca/Economics. More insight below, from FCC’s midyear farmland values review. The dance between interest rates, farm profitability and farmland values Interest rates are always a major driver of major investment decisions. The economic environment of the previous two years has been characterized by high interest rates due to persistent inflation. REAL ESTATE
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