Farm Credit Canada has published its farmland value report for the mid-way mark of 2024, with Saskatchewan leading the way with growth of 7.4%.
The overall Canadian average for January to June 2024 sits at 5.4%, despite a challenging financial climate of elevated interest rates and lower commodity prices.
All provinces posted positive gains on farmland values; however, the pace of gain did slow to below four per cent in Manitoba, Ontario, Nova Scotia and PEI. That list narrows to just PEI when the timeline includes the last half of 2023 (see below).
FCC reports that Saskatchewan’s farmland values keep rising, with northern and central areas nearing double-digit growth, while southern regions show smaller but positive gains.
FCC says that interest rate cuts and anticipated further reductions in the remainder of 2024 (two cuts of 0.25%) and into 2025 (five cuts for a total of 1.25%) should provide support to buyers’ valuations of farmland. Farm revenues will likely remain severely constrained as commodity prices show no signs of rebounding, the report says.
The annual farmland report for 2024 will be released in March of 2025.
Check out the Issues Panel discussing farmland values here!
