Saskatoon

Sask. farmland prices grew by 10 per cent in 2017

The price of Saskatchewan farm land continues to rise faster than anywhere else in the country.

West central Sask. saw prices grow by 16.6 per cent

The price of Saskatchewan farmland grew by an average of 10.2 per cent in 2017. (CBC)

The price of Saskatchewan farm land continues to rise faster than the rest of the country.

According to Farm Credit Canada, the province's average land value rose by 10.2 per cent in 2017, the highest in Canada.

"The time was right for producers to review and adjust their business plans to account for variability in prices of commodities," said Jean-Philippe Gervais, FCC agricultural chief economist, in a news release.

Prices varied greatly depending on the land's location. In west central Saskatchewan, prices rose by 16.6 per cent.

In the northeast, prices only rose by 1.5 per cent.

The value of Saskatchewan farmland varied widely depending on its location. (Farm Credit Canada)

"Good weather conditions in the spring helped producers get most of the acres seeded in a timely fashion, except for some of the northern areas, which were delayed due to excessive moisture," read the report.

Land prices have been on the rise in Saskatchewan for at least the past ten years. In 2011, land value saw a massive spike in prices that continued for another four years, before levelling off in 2015.

The average land price in Saskatchewan varied from $1,321 per acre to $1,891.

Farm Credit Canada appraisers estimated market value for the study using recent comparable land sales numbers. The price range excluded five per cent of the highest and lowest sales.

Nationally, land values grew by 8.4 per cent.