Farm Credit Canada released its 2015 Farmland Values Report On Monday, showing an average increase of 10 per cent on values across Canada.

Alberta producers should prepare for a possible easing of farmland values

The average value of farmland IN Alberta increased 11.6% in 2015, following gains of 8.8% in 2014 and 12.9% in 2013. Values in the province have continued to climb since 1993.

J.P. Gervais, FCC’s chief agricultural economist, said a strong agriculture sector – supported by healthy crop receipts and low interest rates – continued to sustain increases in farmland values in 2015.

But some of the key factors that influence farmland values are beginning to change.

“We’re now seeing lower commodity prices offset by low interest rates and a weak dollar. The weak loonie not only makes our exports more competitive, but helps producers receive a better price for their commodities that are mainly priced in U.S. dollars,” Gervais said. “It becomes a real tug-of-war between competing factors that influence farmland values.”

Average farmland values in Canada showed a 10.1-per-cent increase in 2015, compared to a 14.3-per-cent increase in 2014 and a 22.1-per-cent increase in 2013. All provinces saw their average farmland values increase and the rate of increase slowed in six provinces.