Canadian farmland values rose by five percent in 2010.
Farm Credit Canada’s semi-annual spring land value report said value increases for 2010 by province were Saskatchewan 5.6 percent, Manitoba 4.7, Alberta 4.4, Ontario 6.7, Nova Scotia 3.7, Newfoundland 0.7, Prince Edward Island 3.2, New Brunswick 2.4, Quebec and Prince Edward Island 3.2 and British Columbia 3.1.
Here’s what the FCC report said about farmland values in the three prairie provinces in the second half of 2010, in alphabetical order:
• Alberta – Alberta farmland values increased by 1.5 percent in the second half of 2010, following gains of 2.9 and 3.8 percent the two previous periods. Prices have been increasing by .4 percent per month since 2009.
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Northern Alberta showed stable market activity, although dry conditions pushed down land values in certain areas. Land values remained steady in the Calgary-Edmonton corridor.
Irrigated land remained at a premium price while cultivated land saw marginal rises. Cold weather and disease issues at harvest hurt special crop yields.
• Manitoba – Farmland values rose by an average of 1.3 percent in the second half of2010, following gains of 3.4 and 5.9 percent in the previous two reporting periods.
Commodity prices have been strong in the last two years and Manitoba farmland has risen on average .7 percent for two years.
Higher commodity prices and low interest rates make land seem like a safe investment.
The interlake and beef producing regions saw limited increases in value.
Continued commodity price increases had some producers thinking about expansion. Demand is steady from dairy farmers in the southeast.
Demand is steady from dairy farmers in the southeast.
• Saskatchewan – Farm values increased by 2.7 percent in the second half of the year, following 2.9 and 3.4 percent the two previous reporting periods.
The average increase was .5 percent a month during 2010.
Most of the increase was driven by price rises in the southern part of the province that experienced strong demand, especially in good quality lentil production areas.
On the negative side was unseeded acreage due to spring flooding.
While there are fewer sellers in the market overall this half, there was active bidding on any land listed for sale.
Reasons for the reduced listings included good cash rents and unseeded acres due to spring flooding.
