What has been driving land price increases?

Land value increases over 10 years have been matched by productivity as measured in better corn yields

by RANDY DUFFY  

In 2010, Statistics Canada data showed the average value of farm land and buildings in Ontario was $5,062 per acre. The 10-year period from 2001 to 2010 has seen land values increase an average of 5.5 per cent annually in Ontario. Productivity over the same period has seen the average corn yield increase 5.9 bushels per acre or five per cent annually in Ontario. The 10-year average yield in bushels per acre is 136.7. Land values appear to have kept pace with productivity increases.

Better Pork - June 2012