Manitoba

Farmland values in Manitoba increased an average of 13.9% in the second half of 2012, the second highest provincial increase in the country. The previous two reporting periods saw increases of 10.3% and 1.9% respectively. Farmland values in Manitoba have risen consistently since 2001 and this is the highest increase seen since FCC began reporting results in 1985.

Despite drought conditions in most areas, farmland values generally increased throughout the province. Strong commodity and stronger cattle prices, along with low interest rates, helped spur this growth. The continued consolidation of the industry and interest from out-of-province buyers also drove up values.

Competition between the supply-managed industry, grain sector and lifestyle farmers caused prices to increase in the province’s southeast region. In the Interlake region, stronger beef prices affected demand. In the south, south central and southwest areas, the grain and oilseed sectors led the rise in farmland values. These sectors also increased farmland values in the northwest region, with lower-valued land experiencing the largest increase in value.

In the second half of 2012, farmland values in Saskatchewan increased an average of 9.7%, following a similar increase of 9.1% in the first half of the year. This followed a gain of 10.1% in the previous reporting period, continuing a trend of price increases that began in 2002.

 Most increases occurred in areas that had previously experienced flooding and had, as a result, seen few changes in the past two years. While the strong demand for high-quality, clay-based land continued, prices for this type of land tended to remain stable over the reporting period. The price of lower-valued land experienced a greater increase during the current reporting period.

 Interest from out-of-province buyers continued. Some retiring farmers sold large blocks of land to take advantage of the strong prices to sell their entire operation.

Throughout Saskatchewan, many of the land sales weren’t advertised. Landowners who rented out their property continued the trend of selling privately to their tenants.

For all land values across Canada, click on the link below:

www.fcc-fac.ca/en/Products/Property/FLV/Spring2013/index.asp