January 2014 Land Value Trends Newsletter

February 20, 2014

Average Farmland Values for Prairie Provinces

The Land Value Trends Newsletter for the last half of 2013 is now available.

With the variability in Gross Income Multiplier (GIM) between provinces, it is difficult to make a definitive forecast about how land values could react if farm revenue drops and with the correlation coefficient indicating that other factors affect farmland values it is a further challenge to predict a possible change without an analysis of these factors.

However, based on the analyses outlined in the newsletter, the GIM for land values are not historically high. Therefore, looking forward, even if crop prices progress in a downwards trend, with normal production, we do not expect land values to immediately react downwards. However, if crop prices progress through a sustained period of depression, there may be a negative response.