MOOSE JAW — Value of farm assets in Canada grew by $38.9 billion in 2024.
Growth of 14.9 per cent put total assets at $991.5 billion.
Saskatchewan, with a 9.8 per cent increase in farm assets value and Alberta at 5.5 per cent, accounted for two-thirds of the national increase.
But growth in equity, the farmer’s share in assets, slowed for the first time in five years, according to the Statistics Canada report.
Cause for slower equity growth was liabilities increasing 14.4 per cent while assets grew only 6.3 per cent.
Equity in farms grew 7.3 per cent to $832.5 billion, indicating farmers are still in good financial shape.
Equity in Saskatchewan farms grew by 9.7 per cent to $179.5 billion.
Since 2020, farm asset values have soared 53 per cent across Canada.
Saskatchewan didn’t quite match that rate, growing 50 per cent to $203.3 billion.
Interest coverage ratio on debt is the lowest since 1981 at 2.12 times. Most lenders prefer three times coverage.
Long-term liabilities remain low as a portion of equity at $138.6 billion in Canada.
Since 2020, long-term liabilities grew 42.9 per cent in Canada. Saskatchewan long-term liabilities grew 38.3 per cent since 2020 to $19.39 billion.
Ron Walter can be reached at [email protected]
