Rose Prairie helped drive farmland values in the Peace and Northern B.C. as a whole in 2021, according to a Farm Credit Canada report released on March 14th.
The report highlights and compares the average yearly changes in farmland prices per acre across Canada.
Values in the Peace-Northern region increased by an average of 17.3 per cent last year to $2,100 per acre compared to $1,800 in 2020. Although, prices varied across the region between $800 to $3,900.
The report states that Vanderhoof also helped drive the average values, with some areas in the region showing some slight decreases or no growth at all.
“This area is a strong agricultural area, with the most cultivated land available in the province,” the report said.
Provincially, B.C. farmland values were up 18.1 per cent last year, a huge jump from an 8 per cent increase in 2020 and a 5.4 per cent increase in 2019.
The most significant increases in value were in the South Coast, Cariboo-Chilcotin and Okanagan regions, according to the report.
“Historically, smaller parcels of land sold at higher per acre prices. The price gap between larger and smaller parcels appears to be getting narrower in many areas,” said the report.
The South Coast had the highest average increase at 33.7 per cent due to high demand with low supply across the lower mainland, which influenced values across the province.
The report says the Cariboo-Chilcotin was up 28.2 per cent to $3,700 per acre and the Okanagan increased 21.6 per cent to $29,700 per acre.
“Severe weather events that caused forest fires and flooding appear to have had minimal or no influence on the local farmland market. However, the full extent of the possible impact has yet to be realized,” noted the report.
Farmland values in the Alberta Peace saw a $2,400 average last year, up 3.6 per cent.
“Fewer large parcels of land were up for sale in 2021 compared to other years. The largest increase was in the northern area of the region, where increases were well above the average,” said the report.
“Some other parts saw moderate to no increase in values. Most of the change in value happened in the first six months of the year.”
The national average for farmland values increased 8.3 per cent in 2021, compared to 5.4 per cent in 2020.