Farmland values in Saskatchewan jumped 5.4 percent in 2020, on par with the national average.
Farm Credit Canada says farmland prices in Saskatchewan rose slower than B.C., Quebec and Alberta but remained strong and stable.
FCC chief agricultural economist, J.P. Gervais, says farmland values rose in Saskatchewan due to strong grain markets and low interest rates.
“Little bit of a slower pace than in 2019, at 6.2 percent,” said Gervais. “We’ve noticed quite a bit of activity in the second half of the year in Saskatchewan, and that is related to the runup in commodity prices that we’ve seen, and the positive impact of that on overall receipt, especially when it comes to grains, oilseeds, and pulses.”
Gervais expects land values this year to remain strong but he says interest rates are starting to increase and that may have an impact on farmland prices.
