While the rate of increase appears to be slowing, average farmland values in Alberta continue to rise. File photo

While the rate of increase appears to be slowing, average farmland values in Alberta continue to rise. File photo

Alberta Agri-news

Alberta farmland values continue to grow

While the rate of increase appears to be slowing, average farmland values in Alberta continue to rise.

“Farmland values rose rapidly in the 1970s but were met with a substantial decline in the 1980s,” says Aaron Lawson, program assistant, Alberta Agriculture and Forestry (AF). “For the most part, prices recovered by the mid-90s, and farmland as an asset class has performed well ever since. Average farmland values across the province in 2016 were over $2,500 per acre. It’s been a strong run when you consider that the last major peak in 1982, prices topped-out around $470 per acre.”

According to Farm Credit Canada, the national rate of growth in farmland values in 2016 was 7.9 per cent. P.E.I. had the highest rate of growth followed by Alberta at 9.5 per cent.

“The higher valued land is generally along the Edmonton to Calgary corridor and into Southern Alberta,” says Lawson. “Counties such as Taber and Lethbridge held the highest average farmland values in 2016, reaching over $5,800 per acre. One of the main reasons for this is that these areas are mostly in the black soil zone. More productive soil can be higher valued. There are other spatial factors that influence the value of farmland as well, such as proximity to city centers and main thoroughfares as well as access to irrigation.”

Lawson says that market factors have a major impact farm on farmland values.

“We sometimes overlook the most obvious things. Simple supply and demand plays a large role in determining the price of an item in the marketplace. There’s only so much land in Alberta and the supply of farmland available for sale each year is limited, as indicated by our data on number of acres transferred. Less supply often means more upward pressure on prices.

“Inflation is another reason for the drastic increases in farmland values. It’s important to look at prices in inflation adjusted terms in order to gain perspective on this.”

The per acre revenue generating potential is also an important driver of farmland values. “The decision to purchase land is often a strategic one. Producers may be expecting stronger commodity prices in the future. On the other hand, they might be trying to scale their land-base to their equipment, or purchase land close to their existing holdings where they might be able to farm at a lower cost.

“Interest rates have also had an impact on farmland values. Interest rates have been generally declining since the 1980s making land purchases more attractive and potentially more feasible for producers.”

For more information on farmland values in Alberta, go to AF’s website: https://www.agric.gov.ab.ca/app21/infopage?cat1=Statistics&cat2=Real%20Estate%20Values

Customer requirements

Are you a producer or processor thinking about entering a new market? Are you facing challenges meeting your customer or regulatory requirements?

Alberta Agriculture and Forestry (AF) has a new online resource available called Meeting Customer Requirements that guides producers and processors through the necessary steps to consistently meet market standards, customer and regulatory requirements.

“Meeting Customer Requirements consists of four modules that each take between 15 and 30 minutes to complete,” says Kellie Jackson, development officer, AF. “The modules can be done individually or sequentially. Meeting Customer Requirements is free, easy to use and can be accessed online by computer or tablet.”

The new tool helps producers and processors to: evaluate whether their business is able to meet new requirements, take the necessary steps to address any gaps to enable them to meet these requirements, check and maintain their system through an internal audit and demonstrate that they are meeting requirements through an external audit.

Meeting Customer Requirements is available on AF’s website. For more information, e-mail kellie.jackson@gov.ab.ca or phone 403-948-8538.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

Alberta Agri-news

Just Posted

Alberta chief medical officer of health Dr. Deena Hinshaw said the province still hopes to bring the hospitalization number down before relaxing restrictions. (photography by Chris Schwarz/Government of Alberta)
14 new deaths, 366 new COVID-19 cases in Alberta

Province nearing 100K COVID-19 vaccine doses administered

Black Press file photo
Leduc RCMP investigate serious collision involving train

Leduc RCMP were called to a collision between a train and truck on Centre Street in New Sarepta.

Elder Muriel Lee. (Photo submitted)
Maskwacis Elder Mentoring Program connects Elders with young parents

By Chevi Rabbit For Black Press Media The Maskwacis Elders Mentoring Program,… Continue reading

Pipestone Flyer file photo
Nominations now open for 2021 general municipal election

Nominations for Wetaskiwin’s general municipal election are now open until Sept. 20, 2021.

In this undated image made from a video taken by the Duke of Sussex and posted on @SaveChildrenUK by the Duke of Sussex and Meghan, Duchess of Sussex, shows the Duchess of Sussex reading the book “Duck! Rabbit!” to their son Archie who celebrates his first birthday on Wednesday May 6, 2020. The Canadian Paediatric Society is reminding families that the process of raising a reader starts from birth. (Duke of Sussex/@SaveChildrenUK)
Canadian Paediatric Society says raising a reader starts from birth

CPS says literacy is one of the strongest predictors of lifelong health outcomes

Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Thursday August 20, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Easing rules for parental benefits created inequities among parents, documents say

Employment Minister Carla Qualtrough’s office says the government will make any necessary changes

People walk along a pedestrianized zone of Sainte-Catherine street in Montreal, Monday, May 18, 2020, as the COVID-19 pandemic continues in Canada and around the world. Newly released statistics point to a major drop in police-recorded crime during the first eight months of the COVID-19 pandemic. THE CANADIAN PRESS/Graham Hughes
Crime down in first 8 months of pandemic, but mental health calls rise: StatCan

The agency says violent crimes such as assault dropped significantly

(Photo submitted)
Central Alberta researchers recognized for studies in agricultural sciences

Jessica Sperber of Ponoka and David MacTaggart of Lacombe awarded prestigious scholarship

FILE – Canadian Prime Minister Justin Trudeau delivers his opening remarks at a news conference outside Rideau cottage in Ottawa, Tuesday, January 19, 2021. THE CANADIAN PRESS/Adrian Wyld
Vaccine CEO ‘very, very clear’ that Canada’s contracts will be honoured: Trudeau

Trudeau says he spoke to Moderna CEO on the morning of Jan. 26

A ground worker wearing a face mask to curb the spread of COVID-19 unloads lobsters from a WestJet Airlines flight at Vancouver International Airport, in Richmond, B.C., on Thursday, January 21, 2021. THE CANADIAN PRESS/Darryl Dyck
Trudeau teases stricter travel measures; Canadians flying to U.S. now need COVID test

Prime minister says measures need to not hurt imports and essential trade

(Photo submitted)
Ponoka RCMP receives new police puppy trainee

Detachment says goodbye to ‘Maja’ and welcomes ‘Neutron’

Art Kempf, originally from the Stettler area but now living in Lacombe, is pictured here with his late wife Lillian. Art’s 100th birthday is coming up on Feb. 22nd.
photo submitted
Former Stettler area resident Art Kempf will be celebrating a very special day next month

Kempf, now a Lacombe resident, marks his 100th birthday on Feb. 22nd

Most Read