LAKELAND – a recent report from Farm Credit Canada (FCC) states that in 2024, agricultural land across the country increased in price, with farmland values in Alberta rising by 7.1 per cent.
Some real estate brokers in the Lakeland region have reported that prices of good agricultural land in the area have remained steady, though these amounts vary depending on the quality of the land.
Gerry Storoschuk of Royal LePage Northern Lights Realty, which serves the Cold Lake and Bonnyville areas, estimated the average price of agricultural land is near $2,000 per acre, depending on what it is being used for.
“It could be less for bush pasture,” he stated.
When asked if he has any insights into why agricultural land values are getting higher, Storoschuk replied by saying that proximity to adjacent land could bring a premium.
The cost of farmland, according to Storoschuk, should maintain its upswing.
“Prices will continue to increase as there is a limited amount of trading,” he said.
Tyler Poirier of Century 21 Poirier Real Estate in St. Paul said the average price of good agricultural land in the St. Paul area is often dependent on soil quality.
“The prime land is between $3,800 and $4,000 an acre,” Poirier told Lakeland This Week.
According to Poirier, prices of farmland have increased in recent years due to strong demand from local farms, Hutterites, as well as corporate farms.
“Small farmers and estates are the leading sellers to large farmers,” he said.
As for why agricultural land values are getting higher, Poirier said in previous years, low interest rates, good cash crop prices, and economies of scale have been utilized to pay off large equipment purchases.
Furthermore, although the area has had some down years, he explained, overall, the crops have been good.
Canadian farmland on the rise
According to the report from the FCC, which was released on March 18, the average value of Canadian farmland increased in 2024, going up by 9.3 per cent. This is slightly less than the 11.5 per cent increase reported in 2023, as stated in the latest FCC Farmland Values Report.
J.P. Gervais, the FCC’s chief economist, stated that the increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices.
“The limited supply of farmland available for sale combined with lower borrowing costs resulted in an increase in the average price of farmland across the country,” Gervais said.
According to the FCC report, recent dry conditions in Canada’s prairie provinces have resulted in a robust demand for irrigated agricultural land. The report also confirmed that market availability of irrigated land is very limited.
“With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability,” said Gervais.
