Farmland values in Manitoba continued to climb in 2016, but lost steam compared to previous years.

This according to Farm Credit Canada's latest Farmland Values Report.

The average value of Manitoba farmland increased 8.1 per cent in 2016, following gains of 12.4 per cent in 2015 and 12.2 per cent in 2014, continuing a trend of climbing values since 1992.

In six provinces, the average increase in farmland values slowed from the previous year and despite the overall national increase, seven of the 51 regions assessed across Canada showed no increase in farmland values in 2016.

“The impact of some of the key farmland value drivers appear to be fairly consistent across Canada,” said J.P. Gervais, FCC chief agricultural economist. “Levelling out of commodity prices and some challenging weather conditions may have taken some of the steam out of farmland values and hopefully this moderating effect will turn into a trend.”

Prince Edward Island experienced the highest increase among the provinces and saw the only double-digit increase at 13.4 per cent.

“Demand for Canadian agricultural products remains strong at home and abroad,” Gervais said. “A healthy agriculture sector – supported by a low Canadian dollar and low interest rates – helped sustain increases in farmland values in 2016.”

Canada’s farmland values showed an average increase of 7.9 per cent in 2016, compared to a 10.1 per cent increase in 2015 and a 14.3 per cent increase in 2014. Canadian farmland values have increased at various rates for the past 25 years.