Winnipeg, April 11 – Canadian farmland values rose slightly more than 10 percent in 2015, according to the latest annual report from Farm Credit Canada.
The rate of growth was down from the previous year, while a closer look at the numbers shows that values were steady or lower in many locations.
The total 10.1 percent increase compares with the 14.3 percent growth reported the previous year and 22.1 percent in 2013.
On a provincial basis, Manitoba saw the largest increase, at 12.4 percent, while Alberta values were up 11.6 percent, and Saskatchewan 9.4 percent.
The Canadian data compares with an increase in U.S. farmland values over the year of only 0.7 percent.
The FCC said the discrepancy between the two countries was tied to the fact that U.S. crop receipts were down 8.6 percent over the year, while Canadian crop receipts were up by two percent. Weakness in the Canadian dollar was cited as the major factor there.
FCC chief agricultural economist J.P. Gervais also noted that variations within provinces exist, with roughly half of Saskatchewan seeing little to no increases in farmland values.
A similar situation was noted in other provinces and areas with a high concentration of pulse production saw larger increases in farmland values than others.
In Alberta, strength in the beef sector helped underpin land used for grazing cattle, according to the FCC report. However, localized areas saw the demand for cultivated crop land decline due to the downturn in the resource sector.
For Saskatchewan, the weakness in the oil and gas sector also cut into the demand for land in some areas, according to the report.
However, other regions remained strong, with limited land available for sale overall.
In Manitoba, the oil downturn has not yet affected land prices, according to the FCC report, while relatively good yields and average commodity prices supported farmland prices.
