Farmland prices increases beat high inflation rate

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Cultivated farmland values across Canada kept pace with inflation in 2022 with an average 12.2 per cent increase.

The annual Farm Credit Canada farmland values report notes the increase came “amid strong farm income, elevated input prices and rising interest rates.

“The demand for farmland remained robust and the supply of farmland available for sale continued to be strong.”

The report says farmland values usually take time to adjust to economic changes but record prices for most field crops maintained robust demand.

Saskatchewan farmland prices averaged 14.2 per cent increase last year with variation by region up to 50 per cent.

Farmland values in this province have increased almost one-third in three years.

Leading the increase was the northeast region at 24.2 per cent with prices ranging from $1,400 to $4,200 an acre.

Second largest increase was in the west-central region at 17.2 per cent ranging from $1,400 an acre to $4,200. Limited parcels were sold with heavy clay fetching the most.

The east-central region saw a 13.4 per cent increase with ranges from $1,300 to $3,600 an acre from limited parcels for sale.

The southeast region which includes Moose Jaw averaged a 13.3 per cent increase to $2,500, ranging from $1,300 to $5,200.

The southwest region averaged $2,200 with a range of $1,300 to $5,200. The highest prices were near the U.S. border.

Irrigated land, located mostly in the west-central and southwest regions, increased 26 per cent with prices ranging from $5,700 an acre to $8,000.

Pasture land averaged a 2.8 per cent increase with the southeast running 11.9 per cent to $1,000 an acre. Across most of Saskatchewan pasture land averaged $700 to $800 an acre.

The survey includes about 90 per cent of sales. The top five per cent and the bottom five per cent of values are excluded to ensure typical prices.

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