Saskatchewan farmland continues to be a solid investment.
There is a formula in financial management circles that is called the Rule of 72. It determines how quickly an investor can double their money. And it works like this: take your annual rate of return, divide 72 by that rate and the quotient is the number of years it takes to double your investment.
Farm Credit Canada has just updated its farm value assessment to the mid-point of 2025. Saskatchewan land values rose by 6-percent in the first half of the year with an annualized increase of 12-percent. In other words, farmland values have been rising at a steady pace for the last year.
At this pace, purchasers would see the value of their land holdings double in just six years, a rate that compares favorably with the stock market and significantly outpaces both inflation and interest income levels.
The federal Crown says the cost of renting farmland for production is rising in lockstep with land value increases but, since both are rising, the ratio of rent-to-price is not changing.
