Sask Farmers Hold 20% of Canadian Farm Equity

Strong crop prices have led to an improvement in the outlook for Saskatchewan agriculture this year. Prices began to move late last year and it was enough to change the financial picture on farms across the province for 2020, a signal that 2021 may produce even stronger improvements.

StatsCan figures show that improving crop prices were quickly translated into higher land values as buyers were prepared to offer more for property. By the end of last year, the value of all farmland in the province was $93 billion. That was an increase of $4 billion last year and $21 billion over the last five years.

On the other side of the ledger, liabilities hit $17 billion so fiscal prudence is the order of the day on farms in this province, even though leverage is rising as producers are willing to take on a little more debt to finance the expansion or asset purchases.

The bottom line on financial statements in this province is still strong though. Total equity or net worth of farmers topped $110 billion at the end of last year,  about 20-percent higher than five years earlier.