April 22, 2008

Canada's Nova Scotia sees higher farmland values on robust grain planting

Nova Scotia in eastern Canada is witnessing rapid rise of farmland values as high grain prices drive farmers to grow more crops to meet the strong demand of livestock feed.

William Versteeg, president of the Nova Scotia Federation of Agriculture, said farmers used to buy grain from other regions in Canada cheaper than they could produce it themselves.

Yet, the trend has shifted as rising transportation costs and high demand for cash crops encouraged production back to home soil.

Versteed expects more wheat and corn grown in the province.

Farmland values in Nova Scotia rose by 3.1 per cent during the last half of 2007.

Overall, land values in Canada increased by 7.7 percent during the later part of last year.