The Farm Credit Canada annual farmland values report says the national increase was 11.5 percent last year—just a bit less than the 12.8 per cent reported in 2022.

There were four provinces that had average farmland value increases in the double digits: Manitoba, Ontario, Quebec and Saskatchewan.

The average farmland value in Saskatchewan rose 15.7 per cent last year, compared to 14.2 per cent in 2022 and 7.4 per cent in 2021.

FCC Chief Economist JP Gervais says a limited supply of farmland, combined with a robust demand from farm operations is driving the growth. The land market has proven to be resilient in light of higher interest rates, however the FCC anticipates a cooling of the market in 2024 due to lower grain and oilseed prices. Gervais says the higher land value makes it very challenging for younger producers who are trying to grow their land base. He says these conditions can expose some operations to more financial risk.

You can check out the FCC’s two-page report on Saskatchewan farmland below (complete with charts and commentary)