FCC 2021 Farmland Values Summary
FCC released their 2021 farmland values report and saw an average increase of 8.3% across Canada in farmland values.
The largest increase came from Ontario, up 22.2%.
Here in the Prairie provinces, Manitoba increased 9.9%, Saskatchewan 7.4% and Alberta 3.6%.
FCC mentioned sustained commodity demand, historically low interest rates, favorable commodity prices and tight supply of farmland available as positive factors.
One scenario I see a lot is farmers have all their wealth tied up in their farmland.
Given the past returns no one can argue that farmland has been a great investment.
However, it is worth exploring how you can create tax efficient returns outside of farmland.
The true meaning of diversification is having different assets not more of the same.
Do you have a farm financial RRSP?
I create investment plans and strategies for farmers to help them reduce taxes and meet their goals for retirement.
Even though I know the joke is a farmers never really retires.
Learn more about our farm financial RRSP.