Real Estate Investment Trumps Farming Income

For farmers, their primary source of wealth isn’t actually farming; it’s real estate investment. At least that’s the case for farmers who own most of their land rather than renting.

The 2022 FCC Farmland Values Report shows a resurgence in farmland values in all three Prairie provinces.

Percentage Increase in Farmland Values – Farm Credit Canada

The Farm Credit Canada evaluation further breaks down each province by region and it should be noted that within each region there’s a wide variation in farmland values. For instance, in central Alberta, the average farmland value in 2022 was $5,500 an acre, but the range was $2,400 to $10,900 with the high side no doubt influenced by factors other than agriculture.

In west central Saskatchewan, the 2022 average was $2,800 an acre, while the range was $1,300 to $6,000. In south central Manitoba, described as Central Plains – Pembina Valley, the range was $2,900 to $11,900 an acre with the average coming in at $5,800.

For the first time, FCC included pastureland values in its report. In Alberta, the average year-over-year increase in pastureland values was 5.5 per cent, with Saskatchewan coming in at just a 2.8 per cent increase. The west central and southwest Saskatchewan regions showed no increase.