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The effect of long-term real rates on farmland appreciation behavior

Real rates appear to have had a material effect on the behavior of Canadian farmland over the 40-year period studied. This effect was expressed in both average appreciation rates and the likelihood of drawdown – both of which improved as real rates dropped below 4%. The current lower real rate environment, if it continues, appears to be highly favorable to ongoing farmland appreciation prospects.

Real Rates and Farmland