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Abstract
Farm lobby groups in Canada have
consistently argued that there is a
farm income crisis. However, the
average net worth of Canadian
farm families has been two to three
times the average net worth of all
families. If farm incomes are so
persistently low, how and why do
farmers continue to farm and
purchase farmland at such high
prices? A discounted earning
model was employed to estimate
farmland value in Canada. The
overall conclusion is that there is no
strong evidence that Canadian
farmland is overpriced, as would
be expected from the low levels of
net farm income.