While Manitoba farmland values rose five per cent in 2017, there were regional differences, says the 2017 FCC Farmland Values Report released April 23.
“In general, Manitoba saw higher-priced land values remaining relatively stable, while low- to mid-priced land values recorded increases,” the report says.
The biggest percentage increase was in the Parkland region at 9.9 per cent, up from 6.8 per cent in 2016.
“Once again, producers looking to expand their operations and landlords selling to their renters, coupled with limited and available for sale, were driving factors behind the region’s increase,” the report says.
Farmland prices were flat in Manitoba’s Central Plains-Pembina Valley region last year.
“Unlike the previous year, higher-priced land in the region saw very little change in ownership, while increased demand for more affordable land had little effect on the average value,” the report says.
FCC says Central Plains-Pembina Valley has the highest-value land in the province with an FCC reference value of $4,770 an acre and a value range of $1,400 to $8,100.
(FCC’s value range represents 90 per cent of the sales in each area and excludes the top and bottom five per cent.)
EastMan saw the second-highest increase at 7.3 per cent, up from 4.3 per cent in 2016.
A pocket of intensive livestock producers looking to expand partly contributed to the rise in farmland values, the report says.
“Urban expansion from the city of Winnipeg also impacted prices by reducing the amount of available land,” the report says. “In general, higher-priced land in the region remained stable, while more affordable land saw increases.”
Interlake region farmland values were up 6.5 per cent, down from eight per cent in 2016.
“The overall increase in 2017 was buoyed by a strong demand from farm operations looking to expand,” the report says.
The Westman region saw strong demand but a limited number of sales in the area with higher-priced land, resulting in a 5.7 per cent average increase in farmland values, down slightly from 7.3 per cent in 2016.
“The increase was largely driven by producers wanting to expand their operations into parts of the region offering lower prices, while higher-priced land remained relatively stable, the report says.