According to the report, the national average for farmland values fell from a 6.6 % increase in 2018 to a 3% increase in the first half this year.
J.P. Gervais, FCC’s Senior Market Analyst, says farmland values in Saskatchewan saw modest growth of 2.9%.
“If you’re looking at the different regions of Saskatchewan, whether it’s North, South, East or West the average increases may get a little bit higher in the western side of the Province than the eastern side but it’s quite consistent that just is around that 3% range.”
He says farm receipts are expected to be a little bit lower with the uncertainty in the markets.
“To me, that makes sense that this is slowing down. So the markets holding strong, but we’re seeing a lot less robust increases and more modest increases in farmland values across the entire province.”
He notes the fact that farmland values have climbed rapidly in the past; which may be giving some producers reason to pause when it comes to investing in land.
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