(Reuters) – The value of Canadian farmland climbed 7.4 percent during the first half of 2011, the biggest jump in 3-1/2 years, a large Canadian farm lender said on Monday.
Among Canada’s 10 provinces, values rose the fastest in Saskatchewan, where farmland’s worth climbed 11.6 percent on average from Jan. 1 to June 30, according to Farm Credit Canada (FCC).
Saskatchewan is Canada’s biggest grower of wheat and canola, the country’s two biggest crops.
Strong commodity and cattle prices were the main reasons for Saskatchewan’s increase, FCC said, adding that it’s becoming more common for owners to rent out their land instead of selling.
Saskatchewan is one of several Canadian provinces that limits farmland ownership by non-Canadians.
Canadian farmland values have climbed for the past decade, FCC said. Canada is the biggest exporter of spring wheat, durum, oats and canola.
Farmland values also rose in Quebec (4.4 percent), Alberta (4.0 percent), Nova Scotia (2.9 percent) and Manitoba (2.4 percent). They were unchanged in British Columbia, New Brunswick, Newfoundland and Labrador and Prince Edward Island.
Farm Credit Canada uses a system of 245 benchmark farm properties to monitor changes in farm values. The lender does not provide average farmland values in dollars per acre because values vary greatly according to regions of provinces.
Posted by Haylie Shipp