Farmland continues to increase in value
By Collin Gallant on May 2, 2018.
Medicine Hat News Farmland continues to climb in value in 2017, with buyers of Alberta cropland and range paying 7.3 per cent more for acres last year. In southern Alberta, not including the region directly surrounding Calgary, but the Highway 2 corridor to Lethbridge, as well as the southeast quadrant, the jump was 11.4 per cent. Those results were posted Monday by Farm Credit Canada’s annual survey. They state that the average valuation per acre in southern Alberta rose to $5,461 in a range from $1,600 to $10,800 per acre of land. The national average increase was 8.4 per cent last year, following a rise of 7.9 per cent in 2016. The change in Saskatchewan was 10.2 per cent on average across the province, though western portions led the way. The southwest posted growth of 14.2 per cent, with the average price per acre settling at $1,755 in a range running from $700 to $2,600. The change in the west-central part of the province was more pronounced at 16.6 per cent. “With the steady climb of farmland values, now is a good time for producers to review and adjust their business plan to reflect variable commodity prices and slightly higher interest rates, assess their overall financial position and focus on increasing productivity,” said J.P. Gervais, the chief agricultural economist for Farm Credit Canada. The change in central Alberta, including the Calgary region, in 2017, was 8.3 per cent, while land value in northern Alberta grew by 0.4 per cent to and average price of $3,177. The Peace region saw growth of 11.5 per cent on relatively low average selling price of $2,030. Across Alberta, average farmland values gained 9.5 per cent in 2016 and 11.6 per cent in 2015. It was one of four province’s to post slower, but still positive growth last year. 12-11
