A new report from Farm Credit Canada shows that farmland values in Saskatchewan are on the rise.
Agriculture Producers Association of Saskatchewan (APAS) president Todd Lewis said Tuesday this is a good sign heading out of a global crisis.
“I think overall it just shows the strength of the agriculture economy,” Lewis said. “And I think that it is going to be a leader, especially in Saskatchewan here, going forward to recovering from COVID.”
Lewis also added that despite a period of record-low interest rates, younger generations entering the agriculture sector may struggle as a result.
Langham-area farmer Doyle Wiebe said Wednesday that his retirement and succession plan with a younger neighbour he currently partners with may be impacted.
“It affects that because the more he has to pay for that, the less he has to invest in equipment and other improvements to the farming operation.”
Wiebe believes a combination of things — including more interest in acreages and rural life — are contributing to the rising costs.
“It does create a little different type of demand,” he said.
Farmer Rob Stone says consumers may be affected in the short term through the prices they see on their shelves.
“A part of the farm always has to subsidize that land purchase,” Stone said. “As land values go up, commodity prices have to stay high.”
Farm Credit Canada officials say that overall, the numbers are a positive for the province’s economic future and for its contributions to the Canadian recovery plan.
“This report is quite promising as it indicates farmland is strong and a stable investment,” Amber Tuplin with Farm Credit Canada said Wednesday. “But producers should make sure that they’re making sound decisions for their operation as market conditions can change rapidly.”
Saskatchewan’s increase is on par with Canadian average 5.4 per cent in 2020.
Farm Credit Canada’s full report is available online.