A recent review of farmland valuations by Farm Credit Canada shows that demand is still on the rise.
Climbing interest rates and poor growing conditions are likely to be deciding factors in some areas.
In 2022, the FCC said that the average 12-month change as of July was 13.1% in Canada.
For the prairie provinces, that comes out to 5.8% in Alberta, 14.9% in Saskatchewan, and 13.6% in Manitoba.
In comparison, PEI and Ontario exploded in value, with those being at 26.4 and 27.7% respectively.
From that info, provinces with a higher percentage of arable lands, such as Saskatchewan and Alberta, seem to experience a slower pace of increase in land values, suggesting that competition for land with limited supply, such as in Ontario, drives prices.
In 2021 Canada saw an 8.3% increase, with all of the prairie provinces having lower bumps in price, all of which were in the single digits.
It should be noted that most land transactions were likely agreed to prior to the most significant interest rate increases.