Farmland value on P.E.I. climbing but not as steeply as in previous years
Contributing factors include influx of new families seeking land, demand from potato processors
Farm land values continue to climb on Prince Edward Island, but not as steeply as in previous years, according to a report released by Farm Credit Canada.
The average value last year increased by just over four per cent, down from close to six per cent in 2017, and more than 13 per cent in 2016.
Although average farmland values have increased every year since 1993, recent increases across the country are less pronounced than the 2011-2015 period that recorded significant average farmland value increases in regions across Canada.
Contributing factors
The FCC said the biggest increases on the Island were in Kings county with an increase of just over seven per cent and Prince county with an increase of over six per cent — with very little increase in Queens county, at less than one per cent.
A number of factors contributed to the increase including strong demand from potato processors that led to an expansion, an influx of new families seeking land and a large volume of farmland sales, according to the report. Most of the farmland sold on P.E.I. in 2018 were through private sales.
Last year's poor potato season isn't reflected in these prices. That will likely show up in next year's report.
With the exception of Nova Scotia and Newfoundland and Labrador, all provinces saw an increase in average farmland values in 2018. The average across the country increased by over six per cent last year, according to the report.