Farm Credit Canada recently released their Spring 2009 Farmland Values Report, (http://www.fcc-fac.ca/en/Products/Property/FLV/Spring2009/index.asp). The report highlights farmland value changes of Canada as a whole, as well as a breakdown of each province’s values.

According to the report, Canada’s farmland increased in value by 5.6% during the last six months of 2008. Saskatchewan recorded the highest increase in value of all provinces at 8.8%. Over the last 18 months, Saskatchewan farmland has increased in value 1% per month.

The following chart shows farmland value changes over the past few years.
Source: Farm Credit Canada

According to The Winnipeg Free Press, “Sheldon Toews, a broker with Steinbach-based manitobafarms.net, said the higher the quality of the land, the better the price it will fetch, with Red River Valley-area farms the most desirable.” He also added, "We have been seeing two to five per cent growth for some time, but the last couple of years have been quite a bit more in the really good areas."

Is farmland always going to increase in value?

Farmland still carries a great value in Canada. With increasing values of 1% a month in some regions, it’s hard to find a better investment. We’ve said it so many times; no more land is being made and farmland is disappearing at an alarming rate. All these factors are setting a stage for farmland to increase in value. The opportunities to get into owning farmland are hard to come by, but with these kinds of returns, it’s also hard to pass one up.