Farmland values in Canada increased by an average 8.4 per cent in 2021, the highest rate in four years.
The higher increase over 5.4 per cent in 2020 was affected by a combination of factors according to the annual Farm Credit Canada farmland values report.
Record low interest rates, sharply higher grains and oilseed prices and unfavourable weather conditions contributed to farm buying.
Average borrowing costs dropped to 2.7 per cent from 3.4 per cent in the previous year while canola and spring wheat price indexes were up 100 per cent in one year.
Saskatchewan farmland gained 7.4 per cent compared with 5.4 per cent in 2020. Farmland in this province turned in the seventh lowest gain rate in Canada. Ontario led with a 22.2 per cent increase.
Price changes within Saskatchewan bounced within regions from a high of 14.7 per cent in southeast Saskatchewan to a mere .4 per cent in the southwest which includes Moose Jaw.
Prices in the southwest averaged $2,000 an acre with a range of $1,000 to $3,300.
The report says there were small pockets of higher increases in the region.
Southeast region prices averaged $2,200 ranging between $1,100 and $3,200.
East-central prices gained 11.3 per cent averaging $1,900 an acre in a range of $1,000 to $3,200.
Farmland prices in the northeastern region increased 8.3 per cent with an average of $2,300 ranging from $1,000 to $3,300.
Sales in the northeast averaged $2,400 an acre or a seven per cent increase in a range of $1,000 to $3,500.
West Central farmland prices increased 4.9 per cent to $2,400 in a range from $1,300 to $4,700.
Not enough data was available for irrigated farmland but the average in 2020 was $5,000.
In Alberta, farmland managed a 3.6 per cent increase with averages of $4,400 in the south, $2,400 in the Peace district, $4,900 in the central region and $11,500 for irrigated land.
In Manitoba, values increased 9.9 per cent ranging from 4.2 per cent in the Pembina Valley to 17.6 per cent in the parkland area.
Average prices ranged from $2,500 to $5,000 an acre with irrigated land at $10,200.
Farm Credit Canada says the data represents 90 per cent of farmland sales last year.
Annual % change in farmland values
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