Canada's farmland market remained strong and stable during a year marked by turmoil.
That's according to the latest FCC Farmland Value report. According to the study, the average value of Canadian farmland increased by 5.4 percent in 2020, slightly more than the 5.2 percent increase reported in 2019. In Alberta, average farmland values increased by 6 percent in 2020, following gains of 3.3 percent in 2019 and 7.4 percent in 2018. FCC's chief economist, JP Gervais pointed out that since land is the most valuable asset on any farm operation, the land market is a good barometer for measuring the strength of Canadian agriculture.
"Irrigated land remains very strong in Alberta," shares Gervais. "There has been quite a bit of expansion and growth happening in capacity with potatoes for example. All of that I do think is giving a bit of strength to the underlying demand for farmland. I do think that is a reflection of the sustained values that we see in a province, like Alberta, speaks to the increase that we've seen for grains and oilseeds." Gervais concludes that the demand for pasture land has been lower due to the decline in prices for livestock as many industries like the beef and pork industry in Canada and the US have been dealing with the COVID-19 pandemic.
According to the report, the highest average provincial increase for farmland in 2020 was in BC and Quebec with averages of 8 and 7.3 percent respectively. Saskatchewan mirrored the national average increase of 5.4 percent.
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