Farm Credit Canada reports average cultivated farmland values rose by 5.5 per cent on a national basis for the first six months of the year with Saskatchewan leading the way at 7.4 per cent in Saskatchewan.

When you combine the first half of this year with the second half of 2023, the average cultivated farmland value increased 12 per cent in Saskatchewan. It should be noted that this is lower than the 15.7 per cent recorded in the 2023 calendar year.

Even though farmland values increased at a slower rate, FCC Chief Economist JP Gervais says 5.5 per cent national growth in six months in still a very strong number.

Gervais says lower interest rates and a limited supply of available farmland should sustain the current high prices for farmland. However, he also notes FCC is  projecting a 3.3 per cent decline in farm cash receipts in 2024, which could limit farmers’ willingness and capacity to assign higher valuations to farmland.

The full mid-year FCC report can be viewed here.