Big jump in Saskatchewan farmland values

It isn’t very often that Saskatchewan leads the nation with increasing farmland values. Our farmland has long been the least expensive in Canada, so we’re finally playing some catch-up. The latest Farmland Values Report from Farm Credit Canada indicates that the average value of farmland in the province increased by 8.8 per cent in the last half of 2008. Since the publication of the first FCC Farmland Values Report in 1984, this was the largest increase ever seen in Saskatchewan. This 8.8 per cent is on top of a 5.6 per cent increase in the first half of ‘08. In neighbouring Alberta, farmland values increased only 2.2 per cent in the second half of last year. The overall economic slowdown has combined with difficulties in the livestock sector to limit price increases in Alberta. Here in Saskatchewan, strong grain prices in 2008 along with outside investment in farmland propelled land prices higher. Farmland was a pretty good investment last year as compared to most mutual funds. I’m Kevin Hursh.

www.hursh.ca

Kevin Hursh, PAg, CAC