Farmland Values in Saskatchewan increase in 2016

Posted in Saskatchewan / Farm Land For Sale / Agriculture

The Following is the excerpt on Saskatchewan farm land values from the FCC 2016 Farmland Values Report.

The average value of Saskatchewan farmland increased 7.5 per cent in 2016, following gains
of 9.4 per cent in 2015 and 18.7 per cent in 2014. Values in the province have continued to
rise since 2002.

Provincially, there was strong demand and sales activity, including opportunities for
producers to purchase leased land from the province. However, not all areas of the province
saw increases in land prices. In fact, some rural municipalities saw land prices trending
downward, while other areas remained stable. Adverse weather conditions throughout the
growing season appeared to depress prices, but not necessarily temper demand.

The southwest corner of the province had steady demand and values increased in that area
by an average of 16.6 per cent, representing the highest increase in the province. Although
there were challenges with the lentil harvest, the resulting yields and quality ended up being
better than expected.

The northwest part of the province continued to see strong demand and increased prices
throughout the year, resulting in a 10.3 per cent increase in farmland values. Areas with
larger farm operations continued to compete for land that came up for sale, causing land
values to increase.

The northeast region saw a 9.3 per cent increase in farmland values, despite experiencing
some adverse weather conditions. This may have suppressed the appetite to buy land and
helped stabilize prices in most of the area.

The west-central region saw a moderate increase of 7.8 per cent in farmland values.
Prices and demand tended to increase closer to the Saskatoon corridor, while western areas
(toward the Kindersley-Rosetown area) that were more heavily impacted by weather saw
limited activity and stable prices.

Farmland values in east-central and southeast Saskatchewan remained unchanged in
2016. The impact of the oil and gas industry slowdown continued to be felt in the
southeast region.

See the Full Report here