Despite uncertainty surrounding the stability of global energy prices and potential knock-on effects, farmland values across Canada continue to ride the rocky seas of stressful economic times. Though not all provinces are witnessing the same degree of increased growth in value; agricultural land has remained a safe haven and is forecasted to be able to handle any foreseeable bumps in the road.
Southern Alberta Farmland
Alberta Farmland is fortunate to be one of the gainers when it comes to value. Recent value increases have been moderate in comparison to the spikes of 2013 and early 2014 – but with a shift in beef demands and potential herd size growth – pasture land has stabilized the drop-off in crop prices and has become the spotlight of Alberta’s land value. Alberta’s cattle industry is a hot commodity – setting record prices and gaining attention after some lean years. And the resulting chatter around the price of cattle is what’s helping to keep Alberta Farmland a competitive market.
Knowledgeable Investors and Farmers
Southern Alberta Land Broker – Mr. Shawn Hansen – of Hansen Land Brokers explains that the sharp increase in price for a fed steer, coupled with the speculation of expansion of Alberta Beef herd, is attracting interest in pasture land. Alberta Farmers and investors understand that the demand for Alberta Beef by world markets creates an opportunity for agricultural growth; as the rise in prices for bred cattle puts further demands on pasture land. But the rise of the beef industry also creates opportunity for value increases in crop land as the need for feed barley, oats and silage corn multiplies – and with a forecast for ongoing demand for beef looking strong, times are positive for Alberta Farmers and Farmland investors.
While media attention has been focused on the boom-bust cycle of Alberta’s energy sector the positive growth in Alberta’s cattle prices and demand for pasture land may been overlooked – enabling shrewd purchase moves by forward thinking individuals to begin what looks like further competitive times for Alberta Farmland.