A surge ranging from 20% to 25% in the value of farmland in Western Canada has some investors jumping at the chance to purchase some farming properties for their portfolios, according to RE/MAX.
In Saskatchewan, grain-producing farmland surged by 20% to an average of $1,200 to $1,800 per acre. Alberta farmland prices have jumped 20-25% to $2,000 to $4,500 per acre. The record setting bump in farmland prices coincide with a drop in the overall number of farms across the country.
Western farmland has attracted numerous investors from various provinces over the past two years. This is especially evident in Saskatchewan, the largest producer of canola and sixth-largest producer of wheat in the entire country.
Despite the high investor interest, the western provinces all have set limits on the amount of farmland that foreign investors are allowed to own. Those wishing to purchase some farmland should bear this in mind when doing their research and due diligence about these kinds of properties.
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