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Listed below is the information recorded in MLS® pertaining to farmland sales in the province of Saskatchewan. I have compiled the information from August 1 to July 31 on an annualized basis to follow crop years and production cycles.
Just so you know I am not a big fan of using aggregate MLS® historical data for the analysis of farmland values. Its data is not accurate enough to “hang your hat” on for analytical or appraisal purposes. Some of the problems with this data are:
- Building values are lumped in with land values overstating $/acre values
- Sometimes livestock, quota, equipment, inventory, growing crops, etc. are included in the transaction and their value recorded in the total sale price. Again this will overstate land values.
- Intensive livestock operations (poultry, dairy, and hogs) typically have higher building values and smaller land bases. Again these SOLD prices results in an overstated $/acre allocation.
- There is a relatively small number of sales to analyze
- Sometimes individual quarter sections are sold separately and the sales data is not included in the MLS SOLD statistics (i.e. sale price is under stated)
- Sometimes extra quarter sections outside of the listing are included in the deal and the SOLD price is not adjusted to reflect only the land in the listing (i.e. sale price is over stated)
You will note from below that according to MLS® statistics, farmland values are dropping. Obviously that is not the case. What the data is missing are two things:
1) an allocation of final sale price to the various components (i.e. farmland, buildings, equipment, etc.) and
2) the very strong private sales statistics from producer to producer. These sales aren’t recorded in the MLS® data because producers are not listing this kind of farmland. Why list it when you have 5 neighbours out bidding each other to buy it?
“So Tim…Why post the MLS® statistics then? “ Well…I want to start blogging about farmland values and this is the quickest, easiest access to market information. I’ll see what I can do over time to help improve the quality of information. Maybe MLS® will hear and better understand our concerns as farmland salespersons a little bit better and consider our request for improvements in the farmland sales data collection system…and then again maybe not. | Saskatchewan MLS® Statistics | | | | | | | | Aug-10 to Jul-11 | List Price | Sell Price | DOM | Acres | | Minimum | $2,000 | $1,000 | 1.0 | 1.9 | | Maximum | $3,997,500 | $3,600,000 | 378.0 | 4,103.7 | | Average | $249,990 | $214,749 | 101.6 | 317.6 | | Sum | $131,244,569 | $112,743,335 | 53,358.0 | 161,665.5 | | Number SOLD | 525 | Ave. $/acre | $697 | | | | | | | | Aug-09 to Jul-10 | List Price | Sell Price | DOM | Acres | | Minimum | $6,500 | $3,500 | 1.0 | 1.0 | | Maximum | $3,500,000 | $3,500,000 | 429.0 | 6,400.0 | | Average | $227,607 | $195,086 | 110.4 | 280.6 | | Sum | $114,258,800 | $97,933,370 | 55,444.0 | 131,859.7 | | Number SOLD | 502 | Ave. $/acre | $743 | | | | | | | | Aug-08 to Jul-09 | List Price | Sell Price | DOM | Acres | | Minimum | $7,000 | $5,000 | 1.0 | 0.1 | | Maximum | $9,177,500 | $9,506,871 | 384.0 | 3,880.0 | | Average | $242,516 | $215,457 | 90.8 | 277.9 | | Sum | $111,072,152 | $98,679,276 | 41,148.0 | 108,645.6 | | Number SOLD | 458 | Ave. $/acre | $908 | |
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About Tim Hammond
Tim Hammond was raised on a 3rd generation grain farm in Saskatchewan. His background includes a degree in Agricultural Economics from the University of Saskatchewan (BSA 1991) & 11 years experience with Farm Credit Canada, a federal crown corporation specializing in agricultural finance. While at Farm Credit Canada, Tim worked with a specialized land management team (Agri-Land) dedicated to managing, valuing, leasing, and selling off over 1.25 million acres is Saskatchewan that were recovered on in the late 1980s. Tim has over 17 years & hundreds of million dollars in farmland & agri-business real estate transactions under his belt. Tim is one of only a handful of realtors in Saskatchewan who is also a Professional Agrologist (P.Ag.).
Oour sales team is comprised of qualified professionals, most of whom have university degrees in Agriculture. Team members have a variety of prior employment experience in the agriculture, accounting, equipment, appraisal & financing industries. Our combined work experience provides clients with the information and knowledge they need to make informed and prudent decisions. We don't just sell real estate; we set our clients up to succeed.
Head quartered in Biggar, Tim Hammond Realty has team members located throughout the province including Rosetown, Humboldt, Craik, Regina, Moosomin, & Fort Qu'Appelle. This allows us to have a firm handle on local market conditions and opportunities throughout the province of Saskatchewan.
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