Ontario farmland values continue upward trend

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The pace of increase might be slowing, but farmland values in Ontario are growing

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Farmers stampeding into an asset class in hopes of future returns and capital appreciation is just wrong in an environment where central banks are punishing savers with low rates, and has resulted in asset price distortions where some potential buyers will find themselves accepting more risk than they can handle or understand.

Raube Beuerman

The article above coupled with the data from Valco (well done study) reinforces what myself and a couple of my clients have observed which is land prices are not dropping so far .
Some buyers have been thinking(hoping) that prices will drop based on lower commodity prices,which is not an illogical thought .Just not occurring at present .
Jim Straughan
Broker of Record
Aros Realty Ltd

The excellent data base states very clearly that SM and livestock are both still bidding up the price of Ont. Land.

Seems Livestock and SM are both named as the primary contributors to the dreaded 50/1 Land price/earnings ratio. Oh my how can thispossible be true?

I have to take issue with most of Mr. Bryan's comments in the above article, for the sake of younger readers especially, because they are somewhat misleading. To state that interest rates are likely to rise in the next 6 months and then also claim that land is a safe investment could cause financial hardship for someone who buys into that.

1) If/when rates rise-land value falls.
2) Land value rises-when interest rates fall, or are kept artificially low.

Raube Beuerman

Why would you care if high prices might cause a financial hardship for someone? The farmer selling is getting his retirement plan also. So you don't believe farmers selling should get the highest price? Are you the kind of person that would sell to the lowest bidder not to cause a finanial hardship to the buyer?

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