The nearly contiguous parcel near The Pas, Man., features 23,800 acres for cultivation and is going for $53.3 million
It’s believed to be the largest land package for sale in Canada, and it’s on the Prairies.
The land near The Pas, Man., features 23,800 acres for cultivation and is selling for an asking price of $53.3 million.
All existing infrastructure and equipment are included in the sale price, said Darren Sander of Re/MAX Saskatoon, who’s in charge of the listing.
“As far as we are aware, this is the largest piece of farmland in Canada for sale at the moment.”
Sander said the land is priced at about $1,640 an acre, or about $39 million. The remaining $14.3 million is for the existing infrastructure and equipment.
In Saskatchewan, he said, prices can range from $2,000 to $3,500 per acre, while Alberta can see land go for $2,500 to $6,500 an acre.
He said the mostly contiguous land is table-top flat, productive, and has good drainage.
Its soil ranges in the D and E classifications, he said.
“The land was drained in the late 1950s. It was very wet, but became very productive after it was drained,” he said.
Sander said three neighbouring owners came together for the sale.
Their lands could be sold separately, he said, but they thought combining them would offer a unique opportunity to buyers.
“These owners are at that retirement age and have had a lot of success,” he said.
“They want to do some different things and simply can’t pursue their interests while having a farm.
“When you put all these farms together, you simply can’t find acreage like this anywhere in Canada that we are aware of. They are all located right beside each other.”
The sale comes at a time when overall land values in Canada have slowed in growth in recent years.
A Farm Credit Canada review found land values have increased by a national average of three percent, which is below the 6.6 percent growth seen for the entire year of 2018.
FCC chief economist J.P. Gervais recently told The Western Producer that farmers are being more cautious because the price of land relative to income is more expensive.
He said the days of double-digit growth are likely over. Double-digit values hit their last peak of 10 percent in 2015, and Gervais said the overall farming industry has slowed since then.
With regards to The Pas land, Sander said there has been some interest in it, but no takers so far.
He said it’s rare to see such large land packages like the one in The Pas go up for sale. In the past, many sales have gone to highly competitive producers snapping up smaller pieces of land.
“We’ve got a unique set of circumstances here,” he said.
“There are three producers all at an age where they want to retire and it just so happened these guys were all beside each other and we were all able to assemble this in a block.”
The acres in The Pas, however, are considered marginal compared to what’s been sold around the world.
In Australia, for example, a four million acre farm was sold, and while the final price of the farm wasn’t revealed, it had been listed previously for AUS$50 million.