It’s a good time to own farmland in our area.

According to Farm Credit Canada, average farmland values increased by 9.4 per cent last year, coming on the heels of gains 4.4 per cent in 2016 and 6.6 per cent in 2015 and making the province one of the leaders for average increases compared to the rest of the country.

Farm Credit Canada Senior Appraiser Dale Litt says there a number of reasons for the increase.

“Farm income has for the most part increased this year throughout the province and that’s one of the main drivers with respect to farmland values, and number two, historically farmland values are tied directly to interest rates.”

Litt adds it’s a good news story for those who own their property but it does present challenges for those looking to expand their operations or buy new land.