Lorkovic DeKoning Wealth Management
March 30, 2022
Southwestern Ontario Land Values Surge: What Farmers Need to Know
The Spring 2022 issue of Intelligent Farmer dives into the soaring farmland values across Southwestern Ontario, where median prices hit $17,953 per acre in 2021, marking a 25.63% increase from 2020. This unprecedented growth, fueled by low interest rates, high crop prices, and urban demand, presents both opportunities and challenges for farmers.
Click here to download the full Spring 2022 issue of Intelligent Farmer today
Key Drivers of Land Value Growth
- Interest Rates & Crop Prices: Historically low rates and high crop prices (e.g., corn up 52% from 2020 to 2021) have been primary catalysts.
- Urban Influence: Non-local buyers, including urbanites, are driving demand for small farms, further inflating values.
- Successive Yields: Consistent crop yields and livestock density have strengthened market confidence.
AgriStability Program Updates
The AgriStability program, designed to buffer farmers from income declines, saw critical changes in 2021:
- Removal of Reference Margin Limit: This benefits low-allowable-expense producers (e.g., field crop farmers), making it easier to qualify for payments.
- Payment Trigger: Remains at 70% of reference margins, but the simplified rules encourage more farmers to enroll.
Act Now: Enrollment Deadline Approaches
Farmers have until April 30, 2022, to enroll in the 2022 AgriStability program. With the updated rules, even those previously ineligible should re-evaluate their options.
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