Saskatchewan is leading the nation in the growth of farmland values, according to Farm Credit Canada’s latest report.
In the document released yesterday, FCC reports that the average value of farmland in Saskatchewan increased by 10.1 percent during the second half of 2011, ahead of the national average of 6.9 percent.
Farmland values in the province have been rising since 2002, with increases of 11.6 and 2.7 percent reported in the two previous six-month periods.
In the latest report, numbers increased in nine provinces and remained unchanged in Newfoundland and Labrador.
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Farm Credit Canada outlined less than impressive numbers for Canada’s economy Sept. 18, and that will spill over into agriculture.
“With interest rates expected to remain at historic lows until 2013, it will be especially important to monitor trends in crop and livestock receipts in the coming year,” said Michael Hoffort, FCC senior vice-president of portfolio and credit risk.
“These factors, combined with strong demand from expanding farm operations and increasing interest by non-traditional investors, have all played a role in the continuing trends toward higher farmland prices.”
According to the report, farmland values in Alberta increased an average of 4.5 percent, following gains of four and 1.4 percent in the previous two reporting periods. Manitoba saw average values grow 1.9 percent in the latest report, following increases of 2.4 and 1.3 percent.
