How a Low Canadian Dollar Has Helped
Though brutal for Canadians travelling across the border for fun and shopping, the Canadian dollars lack of lustre against the Greenback has proven to have provided some cushioning for Canadian crop growers. According to Farm Credit Canada’s April 8th 2016 report, the fact that most crops are priced in US dollars has given producers a little breathing room and enabled Canadian farmland to outperform US values. And if you’re thinking that values and stability is due to foreign ownership of Canadian land, there’s even further good news to report as foreign interest has had minimal impact, proving that Canadian Farmland values are very much a homegrown achievement.
Could Low Interest Rates be the Double-Edged Sword?
With ongoing historically low interest rates the question has to be asked – is this the double-edged sword that can unravel the rising value of Canadian farmland? With the boom-bust of farmland in the 1980’s it’s only natural for there to be some nervousness around the future value of Canadian soil. Though farmland pricing has remained healthy, there has been an adjustment which is reflective of the nation’s economy. But the recent years of double digit growth in value has created a buffer – which is predicted to provide owners with some security even if prices remain flat or drop slightly in the coming years.
Overall, Canadian Farmland is once again representing the richness our land has to offer and doesn’t look as though it will be shaken by the US slide.