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RYAN R. PARKERPARTNERVALCO CONSULTANTS INC.SouthwesternOntario LandValues 2023 EditionB.COMM, AACI, P.APP, P.AG

OverviewSouthwestern Ontario Land ValuesChange in ValuesHuron CountyPerth CountyOxford CountyMiddlesex CountyElgin CountyLambton CountyKent CountyEssex CountyBruce CoutyGrey CountyWellington CountyParameters and DisclaimerContactTABLE OF CONTENTSRYAN PARKER COPYRIGHT © 2023

OVERVIEWBY RYAN PARKERSimilar to the price of almost everything, farmland values continued to push higher in 2023 withthe 11 Counties in Southwestern Ontario increasing by just over 10%. However, this increase issignificantly lower than the past 2 years that saw increases of approximately 25% per year and iscloser to the long-term rate of increase on farmland that is typically quoted in the 5%-10%range. This past year there were many areas in Southwestern Ontario that experienced new highs with alarge swath of these 11 Counties having farms trade for over $25,000 per acre and variouspockets where expectations of over $40,000 per acre became reality. These highs and overallincrease in land values were despite a seemingly stiff headwind from interest rates andcommodity prices. Interest rates available to farmers in 2023 were 2 to 3 times higher than thelows experienced during 2020-2022. However, the year ended on a good note with a fairlysignificant drop in mortgage rates. On the commodity side of the ledger, the price of corn has dropped from $6.54/bushel in thefirst week of 2023 to $4.83/bushel in the last week of 2023 (source: OMAFRA new crop cashweekly prices). This 35% decrease, although better than the 60% drop experienced in 2013, is amajor reason that the increase of farmland values has slowed. Following that 2013 drop,farmland values in these 11 Counties increased at rate of between 2.6%-9.7% until 2020-2021when interest rates decreased and commodity prices increased. A logical theory would be thatwe will see lower farmland value increases for the foreseeable future if that future involvesgreater than 5% interest rates and less than $5 corn. Even though there was an overall increase in 2023 and overall prices remain very strong, therewas a notable shift in demand in the last quarter of the year. There were fewer bidders for eachfarm than earlier in the year and this resulted in some surprising sales to end 2023. In multipleareas where values had been $30,000-$40,000 per acre for the year prior, there were a fewfarm sales that came in lower than $30,000 per acre. Although I try to avoid the rumour-mill, itwas notable for the first time that I can recall that the buzz in the countryside was about theselower sales and not about the new high sale. As a few months have passed since those sales, anda few additional farms have been sold in those areas at near new highs, it is apparent that themarket is extremely variable and that the range of values is large.It is this variability and expansive range that I believe will best describe our farmland market in2024. For those farmers that have the means (think cash flow rather than equity), there willlikely be several buying opportunities in 2024. The key for those producers will be picking theirspot as there will be farms that garner big interest and result in big prices, as well as farms thathave limited demand and will result in the potential for a ‘deal’. I wish everyone a prosperous 2024 and look forward to seeing many of you in my travels acrossfarm country.RYAN PARKER COPYRIGHT © 2023This report and all the contents of this report are proprietary and cannot be used in or for any type of presentation,appraisal, or separate study without written permission from the Author. Any violation of this copyright will be viewed asa direct infringement of the copyright of this report. To view the Full Disclaimer please refer to the last page of the Report.

RYAN PARKER COPYRIGHT © 2023SOUTHWESTERNONTARIO LAND VALUESHuronPerthOxfordMiddlesexElginLambtonKentEssexBruceGreyWellington$0$10,000$20,000$30,000$40,00020102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000Figure 1: Median land values for 2023 Figure 2: Median land values for all included counties V A L C OV A L C O

RYAN PARKER COPYRIGHT © 2023CHANGE IN VALUES10.2%2022 to 2023 Average ChangeAmong All 11 Counties13%2010 to 2023 Average ChangeAmong All 11 Counties0%Median 2023 Land Value$25,571

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000$50,00023.8%12.7%Figure 1: Median land values for Huron County HURON COUNTYV A L C OFigure 2: Low and High land values for Huron CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeHuron County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17153 94 2022 Top FarmCash ReceiptHogs $379,480,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000$50,000$60,0006.7%11.9%Figure 1: Median land values for Perth County PERTH COUNTYV A L C OFigure 2: Low and High land values for Perth CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangePerth County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17754 96 2022 Top FarmCash ReceiptHogs $324,010,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000$50,00016.1%10.8%Figure 1: Median land values for Oxford County OXFORD COUNTYV A L C OFigure 2: Low and High land values for Oxford CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeOxford County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17854 972022 Top FarmCash ReceiptDairy $337,200,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000$50,00015.3%13.5%Figure 1: Median land values for Middlesex County MIDDLESEX COUNTYV A L C OFigure 2: Low and High land values for Middlesex CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeMiddlesex County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17753902022 Top FarmCash ReceiptCorn $250,780,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,0000.9%13.8%Figure 1: Median land values for Elgin County ELGIN COUNTYV A L C OFigure 2: Low and High land values for Elgin CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeElgin County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17753 882022 Top FarmCash ReceiptCorn $203,320,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,0008.4%14.2%Figure 1: Median land values for Lambton County LAMBTON COUNTYV A L C OFigure 2: Low and High land values for Lambton CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeLambton County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17249802022 Top FarmCash ReceiptSoybeans $278,660,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,0001.5%10.4%Figure 1: Median land values for Kent County KENT COUNTYV A L C OFigure 2: Low and High land values for Kent CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeKent County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 18353922022 Top FarmCash ReceiptSoybeans $272,020,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000$35,0006.9%11.3%Figure 1: Median land values for Essex County ESSEX COUNTYV A L C OFigure 2: Low and High land values for Essex CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeEssex County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 17152 772022 Top FarmCash ReceiptGreenhouse Vegetables $1,086,540,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,00013.4%15.9%Figure 1: Median land values for Bruce County BRUCE COUNTYV A L C OFigure 2: Low and High land values for Bruce CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeBruce County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 16350912022 Top FarmCash ReceiptBeef $218,050,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000$35,0000.2%15.4%Figure 1: Median land values for Grey County GREY COUNTYV A L C OFigure 2: Low and High land values for Grey CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeGrey County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 15447872022 Top FarmCash ReceiptBeef $157,600,000Source for Yields and Receipts: OMAFRA

20102011201220132014201520162017201820192020202120222023$0$5,000$10,000$15,000$20,000$25,000$30,000RYAN PARKER COPYRIGHT © 202320102011201220132014201520162017201820192020202120222023$0$10,000$20,000$30,000$40,000$50,00018.5%12.8%Figure 1: Median land values for Wellington County WELLINGTON COUNTYV A L C OFigure 2: Low and High land values for Wellington CountyV A L C O2022-2023 2010-2023 Figure 3:AverageChangeFigure 4:AverageChangeWellington County’s 5 Year Average Crop Yields (bushels/acre) CornSoybeans Winter Wheat 16551 902022 Top FarmCash ReceiptDairy $254,550,000Source for Yields and Receipts: OMAFRA

PARAMETERSThis study has been completed to provide information on agricultural land values in thegeneral Southwestern Ontario region. The Counties of Huron, Perth, Oxford, Middlesex,Elgin, Lambton, Kent, Essex, Bruce, Grey and Wellington have all been analysed in thisreport.Only sales that occurred in 2023 were selected for the 2023 study. The majority of thesales chosen had no building improvements (vacant land), with the exceptions beingminimally improved properties (i.e. older house and shed) which have had the value of theimprovements extrapolated. Also, the sales utilized were considered to be used solely forfarming purposes. The sales have been analysed on a per tillable acre basis, as this rate isbelieved to be the most accurate reflection of the value of agricultural land.In stating land values in this report, the median unit of measurement was used rather thanthe mean, as the median tends to better protect against outliers in the sales data. Thesame study was completed from 2010 to 2022, with those results also shown in this report. The information contained in this report was obtained from sources believed to be reliable.Certain information in this report has been accepted at face value; especially if there is noreason to doubt its accuracy. Certain empirical data required interpretive analysis pursuantto the objective of this report. However, I have not verified its accuracy and make noguarantee, warranty or representation regarding it. The specific sales data provided issubject to the possibility of errors, omissions, mistakes in calculation of total and tillableacre sizes, as well as error in reported sale price and/or sale date. Although an attempt hasbeen made to find every pertinent sale in the areas described, it is not possible to confirmthat this is the case. This report and all the contents of this report cannot be relied on for any financing,accounting, litigation, expropriation, and/or any other use without written permission fromthe author. This report and the studies were completed as an informative tool and werecompleted independently for no particular client. This report and all the contents of this report are proprietary and cannot be used in or forany type of presentation, appraisal, or separate study without written permission from theauthor. Any violation of this copyright will be viewed as a direct infringement of thecopyright of this report. RYAN PARKER COPYRIGHT © 2023DISCLAIMER

CONTACTR Y A N R . P A R K E RPartner and Agricultural Appraiser atValco Consultants Inc.519-709-3088rparker@valcoconsultants.comB.COMM, AACI, P.APP, P.AG