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Average price of acre of Okanagan farmland has jumped by nearly $10K in last two years

Farmland value still soaring

The average value of an Okanagan acre of farmland has increased by nearly $10,000 in the last two years alone and remains one of the country’s most expensive regions for those looking to grow crops.

Farm Credit Canada released its annual Farmland Values Report on Monday, and it found that Okanagan land value jumped 14.3% in 2022. The average acre costs $34,000, which is up from $29,700 in 2021 and $24,400 in 2020—the first year statistics for the Okanagan were released.

The Okanagan’s range in farmland value goes as low as $15,900 and as high as $95,800.

The $34,000 average is the third highest figure in the country, behind only two other B.C. locations: the South Coast ($139,000) and Vancouver Island ($63,800).

The Kootenays’ average jumped 33.6% in 2022, but its average per acre was still fourth highest in the province at $22,400.

The Okanagan’s price increase was part of a national trend, as the average value of Canadian farmland increased by 12.8% in 2022, which was the largest percentage increase since 2014. It is being attributed to strong farm income, elevated input prices and rising interest rates.

The demand for farmland remained strong, and the supply available for sale continues to be limited.

“Challenging economic conditions could have been expected to slow the demand for farmland and the resulting price buyers paid for land in 2022,” FCC chief economist J.P. Gervais said in a press release. “But the underlying fundamental factors in the farmland market tell another story.”

B.C.’s farmland as a whole increased 8% in 2022 after a whopping 18.1% jump in 2021.

The value of B.C. farmland has not dropped since 2010.



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