Farmland values in Saskatchewan still continue a rising trend.
Mid-year farmland sales data from Farm Credit Canada shows Saskatchewan farmland averaged an 11.4 per cent increase in price during the first six months of 2023.
That is considerably above the national average of 7.7 per cent.
The report notes no shift in the trend of values but “limited availability of farmland is generally pushing prices higher.”
Effective interest rates on loans, moving to 6.5 per cent from four per cent, has not affected land prices, according to the report.
Prices vary by province. “Saskatchewan and Quebec farmland values recorded the highest average six-month increases in the country, with 11.4 pr cent and 10.6 per cent.’’
In Ontario and Manitoba average increases were nearly 6.9 per cent and 6.4 per cent. Alberta showed a three per cent average growth.
British Columbia saw no change. Estimates for other provinces are unavailable due to few land sales for data.
The report suggests land price increases should slow until the uncertainty over the economic situation becomes more positive.
Saskatchewan average farmland prices have increased 36 per cent since 2018.
Average prices in Southeastern Saskatchewan changed from $1,098 an acre five years ago to $2,500 last year.
In Southwestern Saskatchewan the average price has moved from $845 an acre in 2018 to $2,200 last year.
Ron Walter can be reached at [email protected]
