Saskatchewan Farmland Values Trend - 2014
February 11, 2015
An analysis of farmland transactions throughout Saskatchewan indicates that the land value of average quality cultivated land has increased an average of 7% in 2014. The market data shows that most of the gains occurred in the first half of 2014 while the marketplace showed a slowdown in the second half of 2014. This is largely due to decreases in grain and oilseed prices which has reduced the profitability of crop farming although some losses are offset by gains seen in animal based agricultural ventures.
Given the current farm economics and land values across Saskatchewan, we do not foresee a significant change in land values in the short term across the province. Since land values in Saskatchewan are primarily related to agricultural indicators, other economic factors such as oil and gas prices are not expected to have a significant impact on land value. However, changes in other factors such as interest rates, exchange rates, and alternative investment options could have impacts on land values. There is likely to be a reduction in the volume of farm properties transacting prior to a significant change in land values.
Email Bruce Simpson or call him at 780-448-7448 to inquire more about the value of farmland in Saskatchewan.