How Do US and Canadian Farms Compare?
If the past five years have shown us anything, it’s that there has never been a better time to be a farmer in Canada, especially compared to the American market. We found this handy article published by Tom Eisenhauer, ICD.D, President & CEO at Bonnefield Financial Inc. that explains how agriculture in the USA has faltered, whereas Canadian farmers have flourished:
It is a testament to the attractiveness of farmland as an investment asset, that US farmland values have not declined significantly since 2013, despite big declines in farm incomes. Farmers, after all, don’t react to short-term commodity price swings by selling land that is the cornerstone of their long-term business…In Canada, however, steadily increasing farm incomes have led to steadily increasing farmland values since 2014, in line with long-term historic averages of 6% to 8% per year.
Canadians farmland has consistently proven its value throughout the years. Feel free to reach out to the Hansen team if you’re looking into farmland or any other kind of property – we’re always happy to help!