Farmland values in Alberta rose dramatically in 2013, but this year’s increase isn’t as steep.
The average assessment of farmland in the province is up 8.8 per cent, a slower rise than the 12.9 per cent seen the year before.
A report by Farm Credit Canada finds that the rapid growth seen in the Peace region has stabilized, and dry conditions reduced the harvest, meaning buyers are being more cautious.
Executive Vice-President Corinna Mitchell-Beaudin argues that the country could be moving towards more moderate increases, which she says is good news for producers, as gradual change is better for people leaving or entering the industry.
Chief Agricultural Economist J-P Gervais adds producers need to be cautious with the temptation to buy land while there are lower interest rates, arguing the land rental market could be affected by tighter margins.