Saskatchewan had the highest increase in farmland value in the country in 2023, according to a report from Farm Credit Canada (FCC).

The FCC report shows Saskatchewan farmland increased by an average of 15.7 per cent last year. Land in northeast and east-central Saskatchewan rose almost 21 per cent. The average price of pasture land shot up 13 per cent in 2023.

“The value of land has come up. In certain areas I think were catching up to where land prices should be,” said Kelly Reimer, who farms near Tisdale.

Tyler Badinski, owner of farm real estate company Serca Realty, said there are a few factors causing prices to climb.

“Some outside investment, but mostly it’s high cash receipts, some interest in farming and Saskatchewans land values having to catch up to the rest of Canada,” he said.

The FCC report said another factor is that there’s not enough land to meet demand.

“We seem to see a little bit more coming up for sale with the values increasing, but there is still definitely buyers outweighing sellers,” Badinski, said.

Bill Prybylski, vice-president of Agricultural Producers Association of Saskatchewan (APAS), said the increasing value is a benefit for retiring farmers, but a challenge for those looking to expand.

“For retiring farmers knowing that their asset is increasing is giving them some security and knowing that when they do decide to retire, their lifes work will be quite rewarding,” Prybylski said.

“On the other hand, its certainly going to be a challenge for young producers in particular, but anybody thats looking to expand their operations.”

Farmer Philip Hounjet agrees there are benefits and drawbacks when it comes to the uptick in prices.

“It depends on where you are in the life cycle of your farm operation. If youre wanting to buy you want it to be affordable, but if youre looking to sell then you want it to be high ... it’s pros and cons, right,” Hounjet said.

Farmer Carter Reed says that sometimes you have to “bite the bullet.”

“The price of land is never going to go down, so it’s only going to go up,” he said.

“Its almost like you just have to bite the bullet at some point because its an investment.”

Prybylski said making that investment can be possible — with some patience.

“With a little bit of patience and some good planning and a sound business model, there’s going to be opportunities,” he said.