Farmland values correlated with debt |

Farm Credit Canada’s (FCC) Outlook for Farm Assets and Debt 2017-18, published in September, explained that farmland values and farm debt are highly correlated.In the report, FCC presented data to highlight the correlation.The value of farmland and buildings appreciated by 50.1 per cent between 2011 and 2016. Outstanding farm debt appreciated by 32 per cent over the same period of time, according to the report.This correlation could be due to the fact that over the past decade, farming has become more of a profitable industry, according to J.P. Gervais, chief agricultural economist at FCC.

Source: Farmland values correlated with debt |