farmland

Saskatchewan is leading the country according to Farm Credit Canada’s latest Farmland Values Report.

JP Gervais is FCC’s Senior Agriculture Economist said farmland values for the last half of 2011 jumped up 10.1 percent in Saskatchewan compared to Canada’s average value of 6.9 percent, “Farm crops receipts in the last few years have certainly contriubted to increase farm land values in Saskatchewan. Really storm crop receipts, canola, wheat and other commodities as well is mainly fueling the increase in farmland values”

Gervais adds key factors include higher crop prices and lower interest rates, “That also has an impact on buyers demanding farmland and the fact that farmers in high demand coupled with low interest rates is also one big driver in farmland value.”

The report showed farmland values in Alberta increased by 4.5 percent, while Manitoba saw a 1.9 percent increase