WINNIPEG — Farm land values in Manitoba are increasing at a much slower pace than in the other two Prairie provinces, according to a new report released Monday by Farm Credit Canada.
The agency, which is Canada’s leading agriculture lender, said Manitoba farm land values increased by an average of 4.3 per cent in 2011.
That’s roughly half of Alberta’s average increase of 8.5 per cent, and one fifth of Saskatchewan’s average gain of 21.7 per cent.
It’s also less than one third the Canadian average increase of 14.3 per cent, and was the fourth smallest annual gain among the nine provinces that saw land values increase in 2011. The only province that didn’t was Newfoundland and Labrador, where values were unchanged.
The FCC said farm land prices in Canada have been rising steadily for the past decade. It attributed the growth to a combination of low interest rates, higher commodity prices, rising farm incomes, and a strong demand for land from expanding farm operations and non-traditional investors.
It said Manitoba’s 2011 increase included a 2.4 per cent gain in the first half of the year and a 1.9 per cent increase in the second half.
The second-half gain was also the fourth smallest among the nine provinces that saw gains, and was well below the Canadian average increase for the period of 6.9 per cent.