While the pace of rising farmland values in Alberta slowed in 2017 for the second straight year, land still rose more than seven per cent and was near the Canadian average. File photo

Alberta farm land pricing remains strong

Values in central Alberta continue its steady climb due to demand

For the average farmer in the province, the latest report on land values is a good sign.

A report released recently by Farm Credit Canada (FCC) based on 2017 average values of farmland demonstrates agriculture remains strong and stable.

According to FCC’s chief agricultural economist J.P. Gervais, values in Alberta — which were up 7.3 per cent in 2017 — have continued to rise at a rate similar to the Canadian average of 8.4 per cent. In 2016, Alberta values rose 9.5 per cent while the country wide figure was 7.9 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,” Gervais stated.

FCC noted the 2017 jump likely resulted from a better economy in the first six months, while an interest rate increase later in the year put a damper on more growth. It’s also expected a higher cost of borrowing and other increases will cool the market this year.

According to Ponoka-based realtor Tyler Fessler with First Choice Reality, the provincial rise is reflective on what has been happening in central Alberta for the last few years.

“It’s supply and demand, and central Alberta continues to see increases year after year,” he stated.

“We have some of the best soil types, which yield good crops. The big factors are location in the main corridor in central Alberta, as well as the soil type being the most productive.”

Fessler added people know there is good farm land locally and they want to be in central Alberta, which helps keep the prices strong.

This is the first time that the FCC Farmland Values Report provided a value range in terms of price per acre.

Gervais did stress that each farm is unique, but that purchasing more land must include a strong business case while weighing the risks and rewards.

“Farm operations need to be cautious in regions where the growth rate of farmland values has exceeded that of farm incomes in recent years,” he said.

“The good news is Canadian farms are generally in a strong financial position when it comes to net cash income and their balance sheets.”

To view the report and historical data, visit www.fcc.ca/FarmlandValues.

Just Posted

Ponoka RCMP respond to intoxicated male in Golden Leisure Lodge

On May 15, 2019 the Ponoka RCMP responded to a complaint of… Continue reading

Town to sign five-year policing agreement with Ponoka Stampede

The Town of Ponoka will go ahead with a five-year renewable agreement… Continue reading

UPDATED: Ponoka RCMP arrest male on Canada wide warrant

UPDATE for Immediate Release: Collin James Courteoreille was wanted on a Canada… Continue reading

Town passes 2019 budgets and tax bylaw with 2.2 per cent increase

Ponoka town council passed a $25.5 million 2019 capital and operating budget… Continue reading

Alberta throne speech followed by bill to repeal provincial carbon tax

Prime Minister Justin Trudeau has already signalled that if Alberta removes the tax, it will impose its federal carbon levy

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Canada stripping citizenship from Chinese man over alleged marriage fraud

The move comes amid severely strained relations between Ottawa and Beijing

Mayor says northern Alberta town still under threat from nearby wildfire

The blaze has now eaten its way through about 920 square kilometres of forest

Bashaw RCMP assist Stettler in arrest

Man out on bail sitting in custody after vehicle theft spree

Ottawa spending $24.5M to research health benefits, risks of pot use

$390,000 will fund two cannabis public awareness

Crackdown on money laundering does not include federal public inquiry: minister

An independent report commissioned concluded $7.4 billion was laundered in B.C. last year

Trudeau’s action plan on climate change brings B.C. politician out of retirement

Terry Lake, a former B.C. health minister, is running for federal office in Kamloops-Thompson-Cariboo

Survey finds minimal progress in Canadian military’s fight against sexual misconduct

1.6 per cent of regular-force members — 900 military personnel — reported having been victims of sexual assaults over past year

Most Read