While not all regions of Alberta and Saskatchewan saw increases, the provincial averages reflects an increase. The 2020 yearend farmland value report will present a clearer picture of regional differences, said Gervais.
The farmland values review is a helpful for producers interested in the marketplace and is part of a good management plan, said Gervais.
“If you're thinking about some challenges that you have, maybe the solution is to invest or it's a balance sheet. The income statement impacts your ability to invest and develop and grow your business. So, I think keeping an eye on the trends in the marketplace gives you a sense of, financially, what are the risks for you, and perhaps allows you to see the opportunities,” he said.
Although many people were curious to know if the pandemic affected farmland values this year, that answer remains unclear, said Gervais.
“A lot of the transactions that we used to compute the analysis were either recorded or negotiated prior to the pandemic. So, I would like to see the next six months before making a final assessment,” he told Farms.com.
SimonSkafar\E+ photo