According to FCC, Saskatchewan farmland values are showing what it described as a mixed trend, with the eastern regions seeing increases in values while the western regional values remain stable. Western areas have been experiencing drier conditions for some time, hurting production levels, it added.
Similarly, Alberta farmland values gained a modest 3.7% in the January-June period, “partly because some areas have experienced several poor harvest years in a row,” FCC said. The highest increases in the province were primarily on the lower-priced land, while the higher-priced land was mostly stable.
Manitoba farmland values increased by 3.5% in the first half of 2021, comparable to the gains of recent years within the province. But with crops currently being affected by drought conditions, it will be important to watch how this impacts land demand in the second half of the year, FCC said.
In contrast, Ontario saw the largest gain in farmland values for the first six months of 2021, with an 11.5% increase (15.4% over 12 months). The midwestern and southeast regions of the province saw the largest increases, FCC said, noting buyers from different sectors, and a migration of producers from higher-priced to lower- priced areas, are competing for the limited amount of land on the market. Demand for Ontario farmland on the outskirts of urban centers is also very strong.
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