Farmland prices in Ontario went up by 22 per cent last year, reports Farm Credit Canada.
It was the largest provincial price increase in Canada and four times the increase a year earlier.
But urban housing prices in Ontario increased even more – by about 30 per cent.
Jean-Philippe Gervais, chief economist for Farm Credit Canada, said “land right now is at the highest level relative to income.”
Among the factors driving farmland prices higher were low interest rates, high incomes and farmers’ optimism.
At the national level, farmland prices increased by 8.3 per cent last year despite drought and heat that damaged Prairie crops.