Saskatchewan Arms Length Vs. Family Average Price Per Acre

By Author: Steve LeBlanc
Total Articles: 3
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The “Sask. Arms Length VS Family Average Price/Acre” chart presents data from 1995 to 2023, comparing the average price per acre for arms-length transactions and family transactions in Saskatchewan. This data, sourced from Sask Comparable Land Sales, highlights the trends and differences in land prices over nearly three decades.

Key Observations

Overall Trend:
Both arms-length and family transaction prices show a significant upward trend over the period, indicating an increase in the value of agricultural land in Saskatchewan.
The rate of increase is more pronounced in arms-length transactions than in family transactions.
Arms-Length Transactions:
Definition: Arms-length transactions refer to sales where the buyer and seller act independently without any relationship affecting the price.
Price Increase: The price per acre in arms-length transactions has risen sharply, particularly after 2010. By 2023, the average cost per acre has reached approximately $2,500.
Market Influence: The sharp increase can be attributed to market forces, such as demand for agricultural land, investment ...
... interests, and possibly improvements in farm productivity and land use efficiency.
Family Transactions:
Definition: Family transactions involve sales between related parties, where the price may be influenced by factors other than market value, such as familial agreements or inheritance considerations.
Price Increase: While the price per acre in family transactions also increased significantly, it remained consistently lower than arms-length transactions. By 2023, the family transaction price per acre is approximately $1,700.
Controlled Pricing: The lower prices in family transactions may reflect the non-market motivations behind these sales, including the desire to keep land within the family at a reduced cost.

https://www.farmforsale.ca/home/steves-farmland-market-update/

Farm Realtor Alberta & Saskatchewan www.FarmForSale.ca www.Farm-Realtor.com