Farmland values nationally increased by an average of 11.5 per cent
By Diego Flammini
Staff Writer
Farms.com
Canadian farmers are paying more for their farmland.
Overall, Canadian farmland values increased by about 11.5 per cent in 2023, Farm Credit Canada’s (FCC) Farmland Values Report says.
Multiple factors contributed to the rise in farmland values.
“Land value increases occurred amidst elevated interest rates and farm input prices, strong farm income and regardless of moisture levels,” FCC says. “The demand for farmland remained robust and the supply of farmland available for sale continued to be limited.”
All three Prairie provinces had increases.
Saskatchewan had the highest one – a 15.7 per cent jump from 2022.
“There remained a lack of available farmland to meet demand, resulting in higher market values,” FCC says in its report. “This demand occurred despite farm revenues constrained by a lack of moisture in many areas of the province.”
In terms of regions within the province, farmland values in the East Central region, which includes communities like Melville, Watrous and Kamsack, experienced the highest increase.
Cultivated land in this region jumped by 20.8 per cent and has an average value of $2,700 per acre.
For comparison, in 1996, farmland in this region was valued at about $284 per acre, an FCC historical report says.
Pastureland in this area also had the highest value jump – 25.7 per cent compared to 2022. Pastureland is about $900 per acre now.
Manitoba’s farmland values increased by 11.1 per cent in 2023.
The increase, like in other parts of the country, is a result of supply and demand.
“Low supply and strong demand were present in most areas of the province in 2023,” FCC says. “While some purchasers and sellers appeared to be waiting for interest rates to decrease, with land supply tight, parcels that came up for sale saw strong demand, leading to continued value increases.”
The Interlake Region had the highest increase.
Farmland in that part of Manitoba, which includes Gimli, Selkirk and Rockwood, went up in value by 19 per cent in 2023. Cultivated land in the area is around $4,200 per acre.
This region also saw the highest increase in pastureland. That increased by 28.3 per cent to an average value of $500 per acre.
Farmland in the Interlake was valued around $480 per acre in 1996, FCC’s historical numbers say.
Alberta had the lowest farmland value increase of the Prairie provinces.
Farmland there went up by 6.5 per cent in 2023.
“Farmland values in the province were affected by high demand for quality land,” FCC’s document says. “It should be noted that more land transactions occurred through live auctions or sealed land tenders than in previous years.”
Irrigated acres in Southern Alberta, which includes communities like Foothills, Taber and Vulcan, went up by 11.7 per cent, the highest of any region.
Cultivated land in this region now has an average value of $16,600 per acre.
In 1996, that land was valued at $781 per acre.
Pastureland in Central Alberta, which includes Mountain View County, Settler and Wheatland, went up by 13.4 per cent to an average value of $3,600 per acre.
In 1996, that farmland was valued at $748 per acre.
B.C. is the only province to experience a decrease in farmland values.
Values there dropped by 3.1 per cent in 2023 compared to an 8 per cent increase in 2022.
“In 2023, properties on the market took longer to sell and there were fewer sales in certain parts of the province,” FCC reports. “Demand remained strong in key areas, but buyers appeared to have reached a maximum value they are willing to pay for cultivated farmland.”
Cultivated land in the South Coast, which includes the Fraser Valley and Coquitlam, saw farmland values decrease by 19.3 percent to an average value of $112,200 per acre.
In 1996, that farmland was valued at $14,742 per acre.
Land in Cariboo-Chilcotin experienced the highest increase in the province. An 8 per cent jump to an average value of $4,400 per acre.
Almost 30 years ago in 1996, that land was valued at $1,194 per acre, FCC’s historical data shows.
Any farmers in the market for land can visit the Farms.com Real Estate page.