2022 Farmland Values in Southwestern Ontario increased again

by admin February 27th, 2023

2022 Farmland Values in Southwestern Ontario increased again

Average farmland prices increased another 25% in comparison with 2021.

The first report for 2022 Canadian Farmland Values has been released this February by real-estate appraisal firm Valco Consultants providing an overview on the development in the Southwestern Ontario region. This region is known for its excellent soil and a large number of competent farmers ensuring solid returns on farmland investments. In fact, a large number of farmlands managed by FIAN are located in this area.

The 2022 picture of farmland values in South West Ontario looks very similar to the one of 2021:

  • Average farmland values increased in 2022 by 25.65%, pretty much the same increase as in 2021 (25.63%).
  • The 2022 South-West Ontario Median Land Value reached $ 23,077/acre, up from $ 17,963/acre in 2021.

Here are the results by county as well as the price trend over the last 12 years:


Southwestern Ontario Land Values 2022
by county

2022 Farmland Values South-Western Ontario Canada

Southwestern Ontario Land Values
2010 to 2022

2010-2022 Farmland Values Southwestern Ontario Canada

Source: Valco Consultants

The reasons for this exceptional performance are the rapidly decreasing interest rates in the beginning of the year, due to the pandemic. The other element driving the prices were the significantly elevated crop prices driven by drought in some Canadian provinces, such as Saskatchewan and a drop in production in regions shattered by war (Ukraine).

As an example, corn prices alone increased from an average of $ 4.62 per bushel in 2020 to an average of $ 7 per bushel in 2021/22, an increase of 52% (see OMAFRA for quotes and additional information about field crops).

Even from mid 2022 on, when interest rates had started to rise in Canada – they actually tripled in the meantime, comparing with 2021 rates – the situation hasn’t changed much. Land values have not yet responded to this increased borrowing costs. This is most likely driven by the fact, that the offer of farmland for sale remains limited. In addition, the demand for purchasing farmland remains high from the young generation of farmers and investors. They are looking for safe investments and stable returns.

Read the complete report in our Resources Section.


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