Farmland Values Continue to Increase Across the Country

Apr 09, 2020

Farm Credit Canada released its farmland values report this month and values have increased.

National values show farmland values increased by 5.2 percent last year. In Alberta, land values increased by a 3.3 percent margin. Saskatchewan led the country showing a 6 percent increase. JP Gervais with Farm Credi Canada says he does not expect to see a drop in farmland values this year.

"We're not seeing an increase in the amount of land available. Producers are farming a little longer, just like the rest of the population are working a little bit longer, The ones that are transitioning are passing on or transferring their land. There is a very strong demand, notes Gervais.

Looking ahead to land values for 2020, Gervais estimates things won't change much compared to last year. "I expect more caution from sellers. I expect more caution from buyers. A lower interest rate, farm income that might not be too different than what we have seen recently which has been a stagnation. We have had some production issues we have had to deal with, lower prices, trade issues, stagnation, I would expect a similar pattern for land values for 2020"

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