Saskatchewan farmland continues to rise in value but the increase is at a slower pace.
Farm Credit Canada says national farmland values rose 7.9 percent last year, compared to 10.1 percent in 2015, and 14.3 per cent in 2014.
Lower commodity prices were cited as the main reason.
In Saskatchewan, farmland values were 7.5 percent higher— down from 9.4 percent in 2015, 18.7 percent in 2014 and 28.5 percent in 2013.
There was a lot of variability across Saskatchewan last year.
The southwest recorded a robust 16.6 percent increase in land values, followed by the northwest at 10.3 percent, northeast 9.3 percent and west-central at 7.8 percent.
Two regions, the southeast and east-central were unchanged from the previous year.
FCC valuation director Scott Sahulka says the regional differences are due to weather and economic factors.
He says strong pulse crop prices pushed up land values in western Saskatchewan while the downturn in the oil patch affected land values in the southeast.
FCC says adverse weather conditions throughout the 2016 growing season appeared to depress prices, but not necessarily temper demand.
Areas with larger farm operations continued to compete for land that came up for sale in western and northeast areas, causing land values to increase.
Looking at the national numbers, Prince Edward Island had the largest 2016 farmland value increase at 13.4 percent, followed by Alberta at 9.5 percent and Manitoba at 8.1 percent.