We have all heard the astronomical numbers involved in U.S. Farmland prices and the rate at which they have been climbing over the last 5 to 8 years. This rise has coincided with the rise in our prices as well all linked to the invigorated focus on world agricultural production and demand.
We also hear that as the U.S. goes, Canada follows. So now that we see a cooling off of farmland prices in some of the hottest locations in the U.S., does that mean we will follow? Agrimoney.com reported July 18 (http://www.agrimoney.com/news/crop-price-declines-extend-fall-in-us-land-values--7282.html) that a farmland index compiled by Creighton University (from major ag states including Illinois, Iowa and Kansas) had slipped below a neutral rating of 50, to 48.3, representing a small depreciation in land prices. With crop prices moving costs of production into the red for some crops and a 13th consecutive month of decline for farm equipment sales (again according to a Creighton University index), one can't help but think we could see the same thing in the north.
Looking at our local crop conditions and lower than anticipated commodity prices, growth in our local land prices will no doubt be challenged. Am I going to predict which way they go though? No, I'll let the market show us!