By Brian Konrad

Full impact of pandemic on farmland not yet seen

FCC Review suggests modest increase in farmland values for 2020

Sep 15, 2020 | 7:06 AM

REGINA, SK. — Average farmland values in Canada are showing modest increases for the first six months of 2020.

The review of land prices by Farm Credit Canada shows Alberta and Saskatchewan posting the highest increases in values.

The value of farmland in this province was 8.5 per cent higher for the 12 month period that ended June 30th.

Saskatchewan’s land values were up 7.9 per cent.

“Given the global economic situation during the first half of 2020, Canada’s farmland market is showing remarkable resilience in the face of adversity and uncertain times,” said J.P Gervais, FCC’s chief agricultural economist.

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“Changes to production and marketing plans induced by the pandemic have had a definite influence on profitability, yet the demand for farmland remained robust” said Gervais in a release.

Low interest rates, the limited supply of farmland on the market and confidence among producers in the farmland market are the main drivers in the mid year increases.

“Despite supply chain disruptions that have impacted some sectors, such as red meat, the pandemic has so far not significantly affected the agriculture land market,” Gervais said.

“In fact, the grain, oilseed and pulse sectors have performed well in the first half of 2020, supporting the slightly higher rate of increase in Western Canada”.

Average farmland values in Canada have increased every year since 1993.