Location: 113 3rd Avenue West Biggar, Saskatchewan
Mailing Address: P.O. Box 1054 Biggar, Saskatchewan S0K 0M0
FCC Farmland Values Report -- Spring 2012
Regina, Saskatchewan, April 18, 2012 – According to a new Farm Credit Canada (FCC) Farmland Values Report,
the average value of farmland in Saskatchewan increased by 10.1% during the 2nd half of 2011.
Saskatchewan
In the second half of 2011, farmland values in Saskatchewan increased an average of 10.1%, the highest average increase across Canada. This followed gains of 11.6% and 2.7% in the previous two reporting periods, continuing the decade-long trend of price increases that began in 2002.
In Saskatchewan, farmland values increased by an average of 1.8% per month in 2011. The results in Saskatchewan, which has 40% of Canada’s arable land, appear to mirror what’s occurring in the United States, where double-digit increases in farmland values have been reported in several corn and soybean states. The ongoing strength of commodity prices combined with a land market that had historically increased at a slower rate than in other areas of the country are two contributing factors to the current value increase.
The rising values are also attributed to good seeding and harvest conditions in most areas of the province, coupled with low interest rates. Areas that had been flooded out or experienced minimal sales in 2010 saw resurgence in sales activity in the latter part of 2011. However, areas that experienced flooding in the spring of 2011 had limited sales in this reporting period.
Most areas of the province saw strong demand from local farmers wanting to expand their farms or purchase the land they were renting. New entrants from other provinces and countries were also bidding on land. Areas with good quality farmland had fewer market listings because renters were approaching landlords directly to prevent other parties from bidding and to maintain control of the land.
Areas with oil and gas revenue have seen limited sales but strong demand, as landlords choose to keep land that is providing them with both rent and revenue from oil and gas.
 
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