SASKATOON – The value of farmland in Saskatchewan continues to rise. A new report from Farm Credit Corporation (FCC) says values in the province were up 18.7 per cent in 2014, the highest increase in the country.
This is the second consecutive year Saskatchewan has had the highest yearly increase in Canada. In 2013, values were up 28.5 per cent, continuing an upward trend that started in 2002.
FCC officials said demand continues to be strong in areas where large producers were looking to expand and younger farmers continued to grow.
Out-of-province buyers were also interested in productive land and land that also offered resource revenue.
While average land prices increased in the province, there were scattered areas where prices stabilized with minimal increases in value.
Overall, the average increase in Canada was 14.3 per cent in 2014, after rising 22.1 per cent in 2013.
FCC chief agricultural economist J-P Gervais has been predicting a “soft landing” for farmland values since crop prices began moderating following abnormally high prices due to the 2012 U-S drought.