70 Ontario Ag Real Estate Better Farming | December 2024 Office: 306-352-1866 | Cell: 306-530-8035 Email: info@sheppardrealty.ca | Regina, SK LARGE SASKATCHEWAN GRAIN FARM FOR SALE 5,220 ACRES PRODUCTIVE FARMLAND Move-in ready yard site with house, shop & other farm buildings 335,000 BU GRAIN STORAGE & 1,100 MT FERTILIZER STORAGE. Reach out to us to discuss the opportunity to relocate or invest in Saskatchewan or Manitoba farms! Farm & Ranch Real Estate. It’s What We Do. Specializing in Farm & Ranch Real Estate In Saskatchewan & Manitoba. CORP. Scan to learn more about this farm REAL ESTATE The Bank of Canada recently proceeded with reductions in its policy interest rate, with the initial adjustment occurring a little less than a month before our analysis period ended (Jan. 1 to June 30, 2024). While actual interest rate decisions of the Bank did not likely matter much, expectations of lower interest rates might have played a role. By late January 2024, financial markets were fully pricing in the first rate cut of the Bank of Canada to occur in June. And the expectation at the time would be that the Bank of Canada policy rate would be lowered by one per cent by the end of the year. These expectations pushed down interest rates in financial markets and lowered borrowing costs slightly. Lower interest rates, or expectations of lower borrowing costs, enhances buyers’ willingness to pay, thereby driving up demand. Yet farm revenues matter too. High input costs squeeze profit margins, possibly limiting farmers’ capacity to invest in new land and moderating farmland value growth. In the short term, 2023’s strong farm cash receipts likely contributed to the growth we are reporting now. The limited availability of farmland for sale is also a crucial driver of values. Ontario farmland In Ontario, high-quality farmland remains in demand and sells well, while average to lower quality land either struggles to attract buyers or fetches lower prices. The Central West region has seen the highest increase in land values, unlike the Mid Western region, which shows no growth. Overall, values in Ontario are stable with minor changes across most areas, leading to a provincial average growth of 2.1 per cent at mid-year. BF
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