P.E.I. realtors say value of quality farmland rising faster than ever

Some P.E.I. realtors who specialize in farmland say this is a great time to be in the business.  Allan Weeks says he's seen an unprecedented jump in the value of land here, and a 40 per cent rise in his sales over the past year.

"I would say land that was $2,000 an acre a year or two ago is now $3,000 an acre," Weeks said. "This is as big a jump as I've seen."

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It's a trend that has Hamish Redpath focusing more and more of his real estate business on farmland sales. 

"There are a lot of farmers at an age where they're looking to step back from the industry, and they're in a good position to do well in sale and get a favourable price for their land by P.E.I. standards," Redpath said.

So just what's driving land values and sales up? Weeks says he's seeing more interest from Island farmers looking to expand their production, and from farmers outside the province looking for a bargain.

"Ontario land values in particular have just gone crazy, and that's really pushed the interest in the island," Weeks said. "Usually the second or third generation Ontario farmer, they just can't afford to farm up there. Land in some areas of Ontario has gone as high as $20,000 an acre."

It's the very reason several Amish families from Ontario have already moved or are considering a move to the Island.  But Redpath said land sales to the Amish are just a small part of the equation.

European farmers interested

"Lately, I've had European farmers here very interested in pursuing something," he said. "They recognize the quality of life and the incredible opportunity with land prices here on P.E.I. As more and more people realize that, we're going to see prices affected here."

According to Farm Credit Canada's official numbers, land values on the island rose 18 per cent between 2013-2015.  Figures for 2016 have yet to be published.

The President of PEI's Federation of Agriculture isn't convinced average prices are rising as significantly as Weeks and Redpath think. But Mary Robinson says regardless, the fact that farmers are the ones buying farmland is promising.

"I think it's wonderful for the island when we see land continued to be farmed," Robinson said. "It's always a shame when we see land taken out of production.  Not only are we no longer producing food on that land, but we're no longer contributing to our economy on an annual basis."

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