Farmers in Saskatchewan are saying skyrocketing land prices have made it difficult for young producers to expand.
Will Robbins, a 43-year-old farmer who operates southwest of Saskatoon near the hamlet of Laura, says high prices are dissuasive.
He says more land means additional debt that would take too long to pay off.
Farmer Bill Prybylski near Yorkton also says high prices have made it tough for younger producers.
But he says it’s been a boon for older farmers looking to sell and retire.
Farm Credit Canada’s farmland values report says prices in Saskatchewan grew by more than 15 per cent last year.
A hectare in the province can sell for six-thousand dollars to more than 16-thousand dollars.
Leigh Anderson, an economist with F-C-C, says higher prices are due to strong crop revenues and tight supplies.
He says young producers struggle to expand because they don’t have many assets.
He adds one solution is to set up purchasing agreements with older farmers to transition the operation.
