Sask. farmland value increase led 10 provinces last year by Ron Walter

Average land price per region

northwest $1,891/ acre northeast $1,728 west central $1,925 east central $1321 southwest $1,755 southeast $1,710 Source: Farm Credit Canada

The Saskatchewan farmland market is the hottest in Canada.

This province led the country with the largest increase of farmland value last year, according to the annual Farm Credit Canada farmland values report. The leading provincial increase of 10.2 per cent compared with 8.4 per cent across the nation. In 2016, Saskatchewan prices were up 7.5 per cent Land in neighbouring Alberta was up 7.3 per cent in 2017 with Manitoba up five per cent. Farmland price values and increases varied considerably by region within the province.

Land in the southwest region which includes Moose Jaw increased 14.2 per cent, trading in a range of $700 an acre to $2,600 an acre.

The FCC report said the southwest, west central and northwest increases were the largest in any of the 51 regional markets. The increases reflected competitive demand by producers wanting to expand with limited supply for sale.

The majority of southwest land sales occurred in the first half of the year so dry weather and moisture condition weren’t a big factor. Interest rate increases in September and fear of dry conditions slowed price growth in the fall.

FCC economist J.P. Gervais expects the rate of increase to cool this year with higher interest rates and commodity price volatility.

West Central Saskatchewan, Saskatoon east to Alberta and south along the South Saskatchewan Riv- er, led with a 16.6 per cent increase.

Price range in that region was $800 to $2,700 an acre.

The Northwest region, North Battleford to Meadow Lake, increased 14.9 per cent with a range of $600 to $2,900 an acre.

Northeastern Saskatchewan, north of Highway 16, was up a mere 1.5 per cent within a range of $700 to $2,300.

The East Central region, between Highways Six south, 16, and the Trans-Canada Highway, was up only 2.2 per cent in a range of $800 to $2,200. The Southeastern region, which includes Regina and the area east and south of the Trans-Canada Highway, was up 11.2 per cent with a range of$800 to $3,200 an acre.

In 2008 Saskatchewan farmland value averaged $453 an acre, according to Statistics Canada. Annual increases since then put the new average price at $1,385 an acre.

Alberta farmland ranged from $1,000 an acre to $5,000 an acre with $7,000 to $10,000 an acre for irrigated land.

Manitoba farmland ran from $800 an acre to $5,000 an acre for some in the region south of Winnipeg. Prince Edward Island, leading the nation last year with a 13.4 per cent increase was just up by five per cent.

Strong demand in Ontario and Quebec drove prices up 9.4 per cent and 8.4 per cent while Nova Scotia prices were up 9.5 per cent.

New Brunswick farmland was priced nearly six per cent higher.

In British Columbia, prices increased 2.7 per cent — one-third the previous year’s rate. Land prices in lotus land ranged from $600 to $2,900 an acre in the Peace River region to $8,800 to $166,000 an acre in Okanagan wine country.

The FCC value report nearly does an Olympic average, dropping the top five per cent and bottom five per cent of sales from the calculation.

Ron Walter can be reached at ronjoy@sasktel.net