American author Mark Twain apparently was right when he urged people to buy more land because they’re not making any more.
Farmland prices in Canada kept pace with inflation during the first six months this year with a cross-Canada average price increase of 8.1 per cent. Inflation was 8.1 per cent.
According to the Farm Credit Canada mid-year land price update, Saskatchewan farmland prices to June 30 increased by 8.4 per cent after a heady 13.1 per cent increase in 2021.
Higher interest rates and sharply higher input prices seemed to have no impact on land prices, said the report. Although FCC noted many of the land transactions were negotiated before interest rates jumped.
Interest rates have doubled payments for some landowners with loans since the spring, according to FCC.
Strong new crop prices and a 14.6 per cent increase in farm cash receipts in 2021 were factors in keeping land prices high.
Little or no change in Saskatchewan farmland prices was observed in the northwest and northeast regions.
Largest percentage increases in farmland prices were 15.6 per cent, Ontario; 14.8 per cent, PEI; 10.3 per cent in Quebec.
Saskatchewan was fourth with B.C. at 6.5 per cent, fifth
Tied for sixth at six per cent were Manitoba and Nova Scotia with Alberta at 5.8 in seventh.
New Brunswick lagged at 3.4 per cent in last. No data was given for Newfoundland and Labrador.
Ron Walter can be reached at ronjoy@sasktel.net.
