Even with lower commodity prices and unharvested crops, farmland prices in Saskatchewan increased 6.2 per cent last year.
That was less than the 7.4 per cent increase in 2018, says the annual Farm Credit Canada farmland sales report.
Across Canada, farmland prices increased an average 5.2 per cent, a reduction from 6.6 per cent in 2018.
Price increases have slowed every year since the double digit jumps between 10.4 per cent and 24 per cent from 2011 to 2015.
Farmland in this province traded between $800 and $3,900 an acre last year. In 2018 farmland changed hands between $600 and $3,300 an acre.
Price increases varied among the province’s six regions between 9.2 per cent in the east central region to 3.8 per cent in the southwestern region.
“Saskatchewan saw an increase in the number of landlords who either put their land up for tender or sold to long-term renters,” says the report.
“Sales of superior quality land began to level out, while sales of small parcels or lower-quality farmland increased in 2019. Some producers sold land further from their main operations and purchased land closer to gain efficiencies. In most areas of the province, land was bought by local producers with medium-to large-size operations.”
The smaller southwest price increase reflected a softer market than 2018 when prices went up 12.5 per cent. Large producers were less “aggressive” than previously.
Demand exceeded supply in the southeast, boosting prices six per cent compared with 1.7 the year before.
A limited supply of land in the northwest and northeast pushed land prices up by six and 7.1 per cent respectively.
Strong demand and supply and out-of-province buyers drove a 9.2 per cent increase in the east central region.
In the west central region, strong demand added 5.9 per cent to land prices but there was no strong demand on the west side close to the Alberta border.
The rate of land price increases in Alberta of 3.3 per cent was less than half the 7.4 per cent in 2018. Land prices in that province ranged from $1,000 an acre in the Peace River region to $12,000 in the southern irrigated region.
Manitoba saw an increase of four per cent, up from 3.7. Land prices ranged between $800 in the north and central regions to $6,300 in the southeastern region.
Only three provinces — P.E.I., Nova Scotia and Manitoba — had larger rates of increase than in 2018.
Highest priced farmland was in B.C., ranging between $900 an acre in the northeast to $186,000 on the south coast.
Ron Walter can be reached at [email protected]
