In the heart of Canada’s prairies, thousands of acres of Saskatchewan farmland auctions are hitting the auction block this fall. It’s a trend driven by robust commodity prices and a growing interest in agricultural investments.
The Big Spread Auction
One of the biggest farmland auctions this season is “The Big Spread.” It includes 11 pieces, totaling a massive 10,137 acres in southeast Saskatchewan near Estevan. CLHbid.com manages this auction, set for October 17.
Bidders can start at $375,000 for parts of “The Big Spread,” going up to $2.8 million. Successful buyers could get over 2,000 acres suitable for various crops, ample access to water, and pieces ideal for raising cattle. Additionally, there’s oil and gas work in the region that offers another way to make money.
Tyler Ruttan, Sales Director at CLHbid.com, notes the high demand for good farmland. This demand comes from people all over the world wanting more food and the fact that there’s not much land left. He says, “We’ve probably never seen such a high demand for good farmland.”
First Class Property Auction
But “The Big Spread” isn’t the only big farmland offering. In September, CLHbid.com will auction the “First Class” property, made up of 12 pieces totaling 2,290 acres. This land is located just half an hour east of Regina on the Trans-Canada Highway near Indian Head.
Starting bids for each of the 12 pieces range from $400,000 to $980,000. This makes it an attractive opportunity for local growers and maybe even farmers from outside the area.
With 90,000 bushels of grain storage on the property, “First Class” is ready for those looking to grow their farming operations.
Good Weather
Unlike some parts of the province that have had a drought for seven years, the “First Class” region got enough rain this year. This has made the land especially appealing to possible buyers.
Ruttan points out that while rain is very important for profitable farming, it’s important to remember that farmers don’t make decisions based on how one crop year goes.
Demand for Farmland in Saskatchewan
Farm Credit Canada reports that strong crop prices are making people want more farmland, especially in Saskatchewan. Land values in the province went up by an average of 14.2% last year, the biggest growth in Western Canada.
Properties in the West Central area were especially valuable, averaging $2,800 per acre. Land for irrigated crops sold for even more, averaging $6,800 per acre.
In comparison, farmland in southwestern Ontario reached $28,900 per acre, a price that many farmers can’t afford.
The sale of “First Class” and “The Big Spread” shows that Canada’s farming industry is strong, and farmland remains a valuable investment.
Please contact Jared Gibbons, your local realtor, should you have any further questions!