Farmland is a limited resource, 80% of Canada’s farmland is found in the prairies with 38% in Saskatchewan.
FCC’s Senior Ag Economist J-P Gervais is expecting farmland values to continue to increase in 2015.
Gervais says if your looking at buying you need to know your operation:
“We expect interest rates to remain low for the foreseeable future. Just make sure that your operation is sustainable, not just from the current year but also the next couple of years,” Gervais said.
He adds Interest rates and crop receipts are two key drivers when it comes to farmland values.
Gervais says other factors supporting farmland values right now is the fact that the low Canadian dollar makes our products more appealing to international buyers.