2011 AGRICULTURAL LAND VALUES

VALCO CONSULTANTS INC.

Real Estate Appraisers & Consultants

Ryan R. Parker, B.Comm, P.Ag.

(519) 667-9050 ext. 235 rparker@valcoconsultants.com

OVERVIEW
The following study has been completed to provide information on agricultural land values in the general South Western Ontario region. The Counties of Huron, Perth, Middlesex, Oxford, Elgin, Kent, Lambton, Bruce and Grey have all been analysed in this report. To accurately gather the pertinent data, sales were searched, using Geowarehouse, MPAC, RealTrack, and MLS, by Geographic (former) Townships which were then grouped into either, north and south groups or east and west groups. For example the Geographic Township of Tuckersmith in Huron County has been put into the South Region of that County. Only sales that occurred in 2011 were selected. The majority of the Sales chosen had no building improvements (vacant land), with the exceptions being minimally improved properties (i.e. older house and shed) which have had the value of the improvements extrapolated. Also, the sales utilized were considered to be used solely for farming purposes. The sales were analysed on a per total and per tillable acre basis. The per tillable acre rate has been used and quoted in this report as it is the most accurate reflection of the value of agricultural land. The tillable acreage was either obtained from the vendor/purchaser/realtor directly or was estimated from aerial photography. In stating land values in this report, the median unit of measurement was used rather than the mean as the median protects against outliers in the sales data. The median is shown for each region in a bar graph on the following page. In the narrative that follows the graph, the range for each data set has also been provided. Also included in the narrative for each County is a graph showing the 2009 Farm Cash Receipts by commodity, provided by OMAFRA, which shows the major commodity sectors for each County. The same study was completed in 2010, so this report also shows the percentage changes to each region and each County, between 2010 and 2011. Two graphs showing the comparison between 2010 and 2011 can be found following the 2011 graph on the following page. Also studied in this report was the average County yields for selected commodities, and the corresponding land value for each County. These graphs can be found after the narrative analysis of each County.

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2011 LAND VALUES

The graph below shows the median 2011 land value per County region. The X axis shows the County region, while the Y axis shows the land value on a per tillable acre basis.

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

Median

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2010 LAND VALUES VS 2011 LAND VALUES

The graph below compares the 2011 median land values from the previous page to the 2010 median land values found in the 2010 study.

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2010 Median 2011 Median

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2010 LAND VALUES VS 2011 LAND VALUES

The graph below is similar to the previous graph as it compares the 2010 land values to the 2011 land values, except this graph shows the overall County medians rather than the County region medians.

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2010 Median 2011 Median

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HURON COUNTY
Huron County is home to some of the most productive land in the Province and has been one of the Counties which has experienced a strong increase in land values, especially over the last few years. Huron is a County where most farm types are represented. Livestock is still a predominant sector, as is cash 2009 Farm Cash Receipts cropping with a large percentage of the Ontario edible bean crop grown in the south part of the County. Hogs Excellent crop yields and manure management continue Poultry to be important factors in the upward movement in land values. The graph shown provides the 2009 Farm Cash Cattle & Calves Receipts (OMAFRA) for the County of Huron, Dairy highlighting the predominant agricultural sectors in the Corn County (2009 Total Receipts for Huron = $728 million).
Soybeans

The County of Huron was split into North and South regions. The Geographic Townships of Howick, Turnberry, Grey, Morris, Hullett, East Wawanosh, West Wawanosh, Ashfield, Colborne and Goderich were put in the North region. The Geographic Townships of McKillop, Stanley, Tuckersmith, Hay, Stephen and Usborne were put in the South region.

Eggs Wheat Dry Beans $0

Source: OMAFRA

$50

$100 Millions

$150

$200

Within the County of Huron, there were 23 sales used in this 2011 study, with 10 sales in the North region and 13 sales in South region. In the same study which was completed in 2010, there were 10 sales in the North region and 10 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region North South Region North South 2010 Huron County Land Values Low High $4,111 $8,065 $5,208 $10,526 2011 Huron County Land Values Low High $4,891 $9,333 $6,458 $12,000 2010 vs 2011 % Differences Median $5,335 $6,947 $8,557 $9,600 Median $5,335 $8,557 Median $6,947 $9,600

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region

% Difference 30.2%

12.2%

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PERTH COUNTY
Perth County, like Huron, has very productive agricultural land and is another county which is experiencing a strong upward movement in land values, especially over the last few years. Perth has a strong livestock component with both swine and dairy being a historically strong component. Cash cropping also helps 2009 Farm Cash Receipts demand for land in the area with yields in the County at the upper end of the Provincial averages each year. Dairy These high yields and manure management continue to Hogs be important factors in the upward trend in land values. The graph shown provides the 2009 Farm Cash Poultry Receipts (OMAFRA) for the County of Perth, Corn highlighting the predominant agricultural sectors in the County (2009 Total Receipts for Perth = $605 million).
Cattle & Calves Soybeans Eggs Wheat $0 $50 $100 Millions $150 $200

In Perth, the County was also split into North and South regions. The Geographic Townships of Wallace, Elma and Mornington were put in the North region. The Geographic Townships of Logan, Ellice, North Easthope, South Easthope, Downie, Fullarton, Hibbert and Blanshard were put in the South region.

Source: OMAFRA Within the County of Perth, there were 25 sales used in this 2011 study, with 7 sales in the North region and 18 sales in South region. In the same study which was completed in 2010, there was not enough sales data in the North region to be statistically significant, while there were 9 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.

Region North South Region North South

2010 Perth County Land Values Low High N/A N/A $8,125 $11,795 2011 Perth County Land Values Low High $9,385 $13,138 $8,632 $13,776 2010 vs 2011 % Differences Median N/A $10,870 $9,667 $9,948

Median N/A $9,667 Median $10,870 $9,948

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region

% Difference N/A

2.9%

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OXFORD COUNTY
Oxford County, or sometimes better known as the Dairy Capital of Canada, is a highly productive agricultural area with the North region having one of the highest densities of intensive livestock in the Province. Oxford is well known internationally for its dairy farmers but it also is one of the more diverse 2009 Farm Cash Receipts Counties in the Province with various other types of intensive livestock as well as the South region and its Dairy sandy soils home to tobacco and ginseng farmers. The Hogs graph shown provides the 2009 Farm Cash Receipts Poultry (OMAFRA) for the County of Oxford, highlighting the Corn predominant agricultural sectors in the County (2009 Total Receipts for Oxford = $658 million). Soybeans Oxford County, or more importantly the WoodstockTavistock corridor, has historically been one of, if not the highest land value areas in the Province and is usually a catalyst for land values in South Western Ontario, with farmers in other Counties tracking the high prices in East and West Zorra.
Field Vegetables Cattle & Calves Ginseng Floriculture Wheat $0 $50 $100 $150 $200

In Oxford, like Huron and Perth, the County was split Millions Source: OMAFRA into North and South regions. The Geographic Townships of East Nissouri, West Zorra, East Zorra, North Oxford, Blandford and Blenheim were placed in the North region. The Geographic Townships of West Oxford, East Oxford, Dereham, North Norwich and South Norwich were placed in the South region. Within the County of Oxford, there were 17 sales used in this 2011 study, with 9 sales in the North region and 8 sales in South region. In the same study which was completed in 2010, there were 7 sales in the North region and 3 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region North South Region North South 2010 Oxford County Land Values Low High $8,750 $14,130 $7,478 $8,600 2011 Oxford County Land Values Low High $10,625 $13,611 $7,647 $11,154 2010 vs 2011 % Differences Median $10,556 $12,052 $7,500 $9,850 Median $10,556 $7,500 Median $12,052 $9,850

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region VALCO CONSULTANTS INC.

% Difference 14.2%

31.3%

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MIDDLESEX COUNTY
Middlesex County, unlike Huron, Perth and Oxford, does not have an abundance of large intensive livestock operations. This is not to say there are none, as there are some of the largest dairy and poultry operations in the Province located in this County. The main influence on land values comes from cash crop 2009 Farm Cash Receipts farmers. The ongoing urban influence of the City of London also provides constant pressure on land values. Dairy The graph shown provides the 2009 Farm Cash Soybeans Receipts (OMAFRA) for the County of Middlesex, Corn highlighting the predominant agricultural sectors in the Hogs County (2009 Total Receipts for Middlesex = $504 Cattle & Calves million).
Poultry

Like Oxford County, Middlesex has varying soil types from clay loams to the north and south of London to the sandy soils south of Strathroy, to the heavy clay soils in the most westerly Townships. These varying soil types provide varying land values which will be discussed below.

Field Vegetables Wheat Floriculture Eggs Dry Beans $0 $50 $100 $150 $200

Millions Middlesex was divided into East and West regions. The Source: OMAFRA Geographic Townships of Biddulph, London, West Nissouri, Westminster, North Dorchester, Lobo and McGillivary were put in the East region. The Geographic Townships of West Williams, East Williams, Adelaide, Caradoc, Metcalfe, Mosa, Ekfrid and Delaware were put in the West region.

Within the County of Middlesex, there were 25 sales used in this 2011 study, with 12 sales in the East region and 13 sales in West region. In the same study which was completed in 2010, there were 5 sales in the East region and 12 sales in the West region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region East West Region East West 2010 Middlesex County Land Values Low High $7,474 $10,000 $2,935 $6,875 2011 Middlesex County Land Values Low High $8,333 $11,518 $4,750 $8,878 2010 vs 2011 % Differences Median $7,945 $9,645 $4,919 $6,400 Median $7,945 $4,919 Median $9,645 $6,400

Region 2010 East Region 2011 East Region 2010 West Region 2011 West Region VALCO CONSULTANTS INC.

% Difference 21.4%

30.1%

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ELGIN COUNTY
Elgin County is a unique County which stretches along the Lake Erie shoreline and as a result has varying weather conditions which tend to differ from the Counties analysed so far. The land in Elgin also has a large variance in topography as well as soil type and its lack of uniformity provides for a number of agricultural uses 2009 Farm Cash Receipts and usually a wide range in value from area to area. The graph shown provides the 2009 Farm Cash Receipts Corn (OMAFRA) for the County of Elgin, highlighting the Dairy predominant agricultural sectors in the County (2009 Soybeans Total Receipts for Elgin = $298 million).
Field Vegetables Poultry Floriculture Hogs Cattle & Calves Wheat Tobacco Fruit $0
Source: OMAFRA

Elgin County does have a rich agricultural history with current farmers in the County usually being cash crop farmers. The agricultural history of Elgin County was put on display in 2010 when the International Plowing Match was held just outside of St. Thomas. Elgin, like Middlesex, is divided into East and West regions. The Geographic Townships of Southwold, Yarmouth, South Dorchester, Malahide and Bayham are placed in the East region. The Geographic Townships of Aldborough and Dunwich are placed in the West region.

$50

$100 Millions

$150

$200

Within the County of Elgin, there were 17 sales used in this 2011 study, with 10 sales in the East region and 7 sales in West region. In the same study which was completed in 2010, there were 5 sales in the East region and 12 sales in the West region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region East West Region East West 2010 Elgin County Land Values Low High $3,125 $7,982 $3,533 $5,882 2011 Elgin County Land Values Low High $3,556 $10,857 $3,667 $6,545 2010 vs 2011 % Differences Median $6,111 $7,573 $4,453 $4,759 Median $6,111 $4,453 Median $7,573 $4,759

Region 2010 East Region 2011 East Region 2010 West Region 2011 West Region

% Difference 24.0%

6.9%

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LAMBTON COUNTY
Lambton County is similar to Elgin County in some respects, in that there is a variance in soil types across the County. The productivity of the land in Lambton also varies with the soil type and it is no surprise that the values vary along with the soil type and productivity. The majority of the land in Lambton County is cash 2009 Farm Cash Receipts cropped with the majority of the intensive livestock Soybeans farmers in the County being swine producers. The graph shown provides the 2009 Farm Cash Receipts Hogs (OMAFRA) for the County of Lambton, highlighting the predominant agricultural sectors in the County Corn (2009 Total Receipts for Lambton = $389 million).
Cattle & Calves Wheat Dairy Poultry Eggs $0 $50 $100 $150 $200

Lambton was divided into North and South regions. The Geographic Townships of Sarnia, Plympton, Warwick and Bosanquet were placed in the North region. The Geographic Townships of Moore, Sombra, Dawn, Euphemia, Brooke and Enniskillen were placed in the South.

Within the County of Lambton, there were 22 sales used Millions in this 2011 study, with 6 sales in the North region and Source: OMAFRA 16 sales in South region. In the same study which was completed in 2010, there were 7 sales in the North region and 16 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region North South Region North South 2010 Lambton County Land Values Low High $4,523 $9,091 $2,714 $5,353 2011 Lambton County Land Values Low High $6,182 $10,638 $3,444 $10,440 2010 vs 2011 % Differences Median $6,000 $8,667 $4,284 $4,547 Median $6,000 $4,284 Median $8,667 $4,547

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region

% Difference 44.5%

6.1%

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KENT COUNTY
Kent County has always been well known for its high agricultural productivity as well as its agricultural diversity. Through the decades the land in Kent has always been viewed as some of the best land in the Province. Not only is this attributed to the soil itself, but also to the beneficial climate as a result of being farther 2009 Farm Cash Receipts south than the majority of the Province, and in fact the majority of the Country. The graph shown provides the Soybeans 2009 Farm Cash Receipts (OMAFRA) for the County Corn of Kent, highlighting the predominant agricultural sectors in the County (2009 Total Receipts for Kent = Field Veg $407 million).
Hogs

The diversity mentioned above can be seen in the variance of crops that are grown in Kent. Along with the traditional cash crops, field vegetables are grown and a large amount of the Provinces seed corn production comes from Kent County.

Greenhouse Veg Wheat Eggs Cattle & Calves

Kent County, like Lambton, was divided into North and $0 $50 $100 $150 $200 South regions. The Geographic Townships of Chatham, Camden, Zone, Howard and Orford were placed in the Millions Source: OMAFRA North region. The Geographic Townships of Tilbury East, Harwich, Dover, Romney and Raleigh were placed in the South region. In Kent, there is such a variance of soil type that this division becomes somewhat misleading. Within each division (North and South), there are large disparities between the bottom and top end of the range, as can be seen below. Within the County of Kent, there were 24 sales used in this 2011 study, with 12 sales in the North region and 12 sales in South region. In the same study which was completed in 2010, there were 19 sales in the North region and 9 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region North South Region North South 2010 Kent County Land Values Low High $3,333 $8,063 $4,067 $13,157 2011 Kent County Land Values Low High $5,000 $11,351 $4,227 $12,841 2010 vs 2011 % Differences Median $5,667 $8,163 $6,660 $8,253 Median $5,667 $8,163 Median $6,660 $8,253

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region VALCO CONSULTANTS INC.

% Difference 44.0%

23.9%

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BRUCE COUNTY
Bruce County is another County which has experienced a large increase in land values over the last several years as the demand for land from varying types of farmers has increased. Traditionally, Bruce County has been known as the Beef County of Ontario and this title is not likely soon to change. Yet, one changing element in 2009 Farm Cash Receipts Bruce, has been the increase of land being turned into cash crop land. Advances in corn and other grain Cattle & Calves technology have produced crop varieties which can stand a slightly cooler climate and shorter growing Dairy season. This has been a big reason for the increase in land values in Bruce County. The graph shown provides Soybeans the 2009 Farm Cash Receipts (OMAFRA) for the Corn County of Bruce, highlighting the predominant agricultural sectors in the County (2009 Total Receipts Poultry for Bruce = $360 million). Bruce County was divided into North and South regions. The Geographic Townships of Arran, Elderslie, Saugeen and Bruce were placed in the North region. The Geographic Townships of Kincardine, Huron, Kinloss, Greenlock, Culross, Carrick and Brant were placed in the South region.
Wheat Hogs $0
Source: OMAFRA

$50

$100 Millions

$150

$200

Within the County of Bruce, there were 29 sales used in this 2011 study, with 12 sales in the North region and 17 sales in South region. In the same study which was completed in 2010, there were 8 sales in the North region and 4 sales in the South region. The table below shows the ranges and medians for 2011, as well as the ranges and medians from the 2010 land values study. The second table shows the percentage differences between 2010 and 2011.
Region North South Region North South 2010 Bruce County Land Values Low High $2,438 $3,625 $2,640 $5,724 2011 Bruce County Land Values Low High $2,353 $5,286 $2,286 $7,726 2010 vs 2011 % Differences Median $2,911 $3,848 $4,910 $5,243 Median $2,911 $4,910 Median $3,848 $5,243

Region 2010 North Region 2011 North Region 2010 South Region 2011 South Region

% Difference 32.2%

6.8%

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GREY COUNTY
Grey County, while sometimes best recognized for recreational activities in all seasons of the year, is home to a strong agricultural sector. Like many of the Counties analysed so far, Grey has a large variance in soil type from the gravelly soils in Glenelg and Egremont to some wetter soils in Proton and Artemesia. Variances 2009 Farm Cash Receipts can also be seen in the types of farmers in Grey. While cash cropping is less prevalent in Grey, there is still a Cattle & Calves large acreage that is cash cropped by farmers within the Dairy County as well as outside the County. Most of the Fruit livestock groups are represented in Grey, although large Poultry scale intensive livestock operations are few. The Eggs majority of livestock farmers in the County are beef producers, with a large amount of these being smaller Floriculture cow-calf operators. The graph shown provides the 2009 Soybeans Farm Cash Receipts (OMAFRA) for the County of Grey, highlighting the predominant agricultural sectors Sheep & Lambs Hay & Clover in the County (2009 Total Receipts for Grey = $244 million). Corn
$0 $50 $100 $150 $200 For the purposes of this study, only the South region of Millions Grey County was researched, given the non-agricultural Source: OMAFRA influences in the north part of the County. The Geographic Townships of Bentinck, Glenelg, Artemesia, Osprey, Normanby, Egremont and Proton were placed in the South region.

Within the South region of the County of Grey, there were 12 sales used in this 2011 study. In the same study which was completed in 2010, there were 7 sales in the South region. The table below shows the range and median for 2011, as well as the range and median from the 2010 land values study. The second table shows the percentage difference between 2010 and 2011.
Region South Region South 2010 Grey County Land Values Low High $2,444 $4,688 2011 Grey County Land Values Low High $2,500 $6,250 2010 vs 2011 % Differences Median $4,300 $4,345 Median $4,300 Median $4,345

Region 2010 South Region 2011 South Region

% Difference 1.0%

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CROP YIELD COMPARISONS

As mentioned in the Overview, crop yields for the 9 Counties in the study have also been analysed. On the following pages, four graphs have been provided which show the median land values for each County on the X and Y axis, with the selected average crop yield as a line graph, utilizing the Z axis. The Z axis is in bushels/acre and the average yield data was taken from OMAFRA crop yield statistics. The graphs illustrate the differences of each County land value in comparison to the corresponding average crop yield in that County. As can be seen from the graphs provided, the average crop yield for each County does not necessarily produce a relative land value for each County. For example, just because the 5 year average corn yield in County A is 150 bushels/acre, with a corresponding median land value of $7,000/acre, does not mean that County B, which has the same average yield, will have the same median land value. Part of the reason that land values across Counties are not all relative to average crop yields is because of the effect that averages and medians have on data. However, there are real marketplace factors why this difference does occur. One of the major factors is the amount of livestock and poultry farmers within a County. As can be seen in the following graphs, the Counties with a high percentage of intensive livestock farmers (i.e. Huron, Perth and Oxford), have much higher median land values relative to their average crop yields, in comparison to Counties which have a lower percentage of intensive livestock farmers (i.e. Lambton and Kent). Also important to note in the four graphs provided, is the differences between the 5 year average yields and the 2010 average yields for each County. In general, the yield line is similar shape, but the yields have increased substantially.

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5 YR AVG CORN YIELD COMPARISON

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 180 175 170 165 160 155 150 145 140 135 130 125 120 115

2011 Median 5 yr Avg Corn Yield

5 YR AVG SOYBEAN YIELD COMPARISON

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 54 52 50 48 46 44 42 40 38 36 34 32 30

2011 Median 5 yr Avg Soy Yield

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2010 AVG CORN YIELD COMPARISON

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 180 175 170 165 160 155 150 145 140 135 130 125 120 115

2011 Median 2010 Avg Corn Yield

2010 AVG SOYBEAN YIELD COMPARISON

$13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 54 52 50 48 46 44 42 40 38 36 34 32 30

2011 Median 2010 Avg Soy Yield

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COMMENTARY
The sales data analysed and graphed in this report has been collected to attempt to provide benchmarks for the areas in each County, as well as for the County as a whole. Although the data is relatively raw and is spread over a large area, the sales do provide a fairly accurate representation of the value of South Western Ontario farmland. This data compiled for 2011, combined with the data from the 2010 study, will set a base while data sets in subsequent years will help to establish a percentage change, year after year. As shown in each County table above, the increase in median land values between 2010 and 2011 for each County region, was in a range of 1.0% to 44.5%. The median percentage change for the County regions was an increase of 22.7% from 2010 to 2011. Given the long term 'rule-of-thumb' for agricultural land values being an increase of 3%-5% per annum, the increase between 2010 to 2011 is very significant. The major reasons for this significant increase is the historically low levels of interest rates, the increase of crop yields and crop prices, as well as the continued and increased profitability of farmers in general. In regards to overall profitability, it can be noted that the supply managed sectors have remained very strong and the lack of quota available in the dairy industry has increased the dollars being capitalized into land. Cash crop farmers, with the increase in yields and prices, have also had a strong balance sheet over 2010 and 2011. Although not as big of an influence on the recent land market, the red meat sectors have also had increased profitability over 2010 and 2011. However, in my opinion the most important factor behind these huge increases in land values, has been the level of interest rates. Interest rates are the 'vehicle' which is allowing land values to climb so rapidly. Yes, the other factors mentioned have been major catalysts, but interest rate levels have provided the land value environment which we have seen over 2010 and 2011. I also believe, that going forward into 2012 we will experience the same type of land value environment as 2010 and 2011. The main reason for this is the unlikelihood of interest rate increases until at least late 2012. At current interest rate levels, it is my opinion we could see similar increases in land values during 2012, regardless of a major lowering in crop prices which has been seen over late 2011. One key element to keep in mind for 2012, is the possible low supply of land for sale, as 2010 and 2011 have provided higher than average sale transactions as a result of older farmers selling. Given the current debt load which the majority of Ontario farmers bear, I foresee a 3%-4% increase in interest rates creating a huge change in the land value environment. I will not predict any type of major 'correction' in land values, but if Prime rises to 6% or 7% (not likely until 2014 or 2015 at least), the increases which we have seen in 2010 and 2011 will likely be in the past. For additional information on the data provided above or any other related inquiries on land values or appraisals, please do not hesitate to contact Ryan Parker at:

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Real Estate Appraisers & Consultants

Ryan R. Parker, B.Comm, P.Ag. (519) 667-9050 ext. 235 rparker@valcoconsultants.com

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Disclaimer
The information above was obtained from sources believed to be reliable. Certain information in this report has been accepted at face value; especially if there is no reason to doubt its accuracy. Certain empirical data required interpretive analysis pursuant to the objective of this report. However, I have not verified its accuracy and make no guarantee, warranty or representation regarding it. The specific sales data provided is subject to the possibility of errors, omissions, mistakes in calculation of total and tillable acre sizes, as well as error in reported sale price and/or sale date.

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