FCC says farmland values across Canada continued to steadily climb in 2017.
This is an indicator of a strong farm economy.
Chief Agricultural Economist J.P. Gervais says last year in Saskatchewan, land values rose 10.2%, an increase from the previous year, when the land value was 7.5%.
He noted the outlook this year is for slow, but steady growth as land values react to rising interest rates.
“I do expect higher rates and I do think that’s going to cool off the market,” he said. “Now, to what extent is the big question mark.”
Saskatchewan’s rate of land value growth was higher than the national average of 8.4% and the steepest of the three Canadian prairie provinces.
Gervais attributes the softening in most rising land values to higher interest rates and volatile markets.