In 2011 prices jumped from $650 per acre to $1200 and by 2013, land in the Northeast was trading anywhere from $1300 to $2000.
Since our record large harvest though, we are now faced with a back log of grain to move, much lower grain prices and de-coupled fertilizer prices. So now what, where are we going from here?
If recent land rent values at auction sales mean anything, producers remain aggressive. So does this mean we will sustain a 100-200 per cent growth rate we've seen the last couple of years?
In all likelihood, a year from now we will have the 2013-14 grain logistic issue behind us and hopefully see grain prices firm...meaning this was more an anomally than anything, a blip on the radar.
Where are Saskatchewan Farmland Prices Going? While land values continue to rise, the annual doubling of values is not sustainable. This is why you see some Land Buying Groups dumping land and taking their profits. But with food security the number one issue for nations the world over, one has to remember that land is required to grow that food.
The question really is though...where do you think values will go?