The Turning Tide: Saskatchewan Farmland Sellers Face Narrowing Window of Opportunity

As we move further into 2025, farmland affordability continues to be a critical topic for both buyers and sellers across Saskatchewan. At Hammond Realty, we understand that the decision to buy or sell farmland is influenced by a wide range of factors, from market conditions to personal and financial goals. In this article, we explore the current landscape from both perspectives to help you make an informed decision.

Saskatchewan's Evolving Market

According to a recent article by Farm Credit Canada (FCC), the affordability of newly acquired farmland in Western Canada continued to deteriorate in 2024 but remains well below the historical peaks seen in the 1980s. Saskatchewan experienced the most significant decline, driven by rising farmland values and decreasing farm cash receipts. This shift has pushed the affordability index to its highest level since 1990—meaning land is becoming much less affordable for buyers. A higher affordability index indicates that farmers must spend a larger portion of their income on land payments, highlighting the growing financial challenges faced by buyers seeking to acquire new land.

‍Seller Perspective: Maximizing Value

For sellers, the current market presents an opportunity to capitalize on historically high land values. According to FCC's latest report, the average value of Saskatchewan farmland rose by 13.1% in 2024, following a 15.7% increase in 2023. This sustained rise has kept competition strong despite an 11.8% drop in major crop receipts. With demand still robust and supply just beginning to rise, sellers may find that acting now allows them to secure top dollar before potential market saturation.

Buyer Perspective: Weighing Costs and Opportunities

For buyers, the landscape is more complex. With existing landowners spending an average of 11% of farm cash receipts on land payments—the highest proportion on record—purchasing farmland requires a strategic approach. As net agricultural margins are expected to tighten in 2025, buyers need to carefully assess their financial capacity and long-term goals. While affordability challenges persist, buyers can benefit from expanding inventory as more farms come on the market, potentially easing competitive pressures.

Supply Trend is Reversing

Over the past 10 years, the number of farms listed for sale in Saskatchewan on MLS has dropped significantly. In January 2015, there were about 600 farm listings, but by January 2023, that number had fallen to approximately 200—a 67% reduction. This dramatic drop underscores just how limited farmland availability has been in recent years.

However, since January 2023, the number of farmsfor sale has started to increase slowly, now reaching around 300. This gradualrise suggests that the supply trend is reversing. We've also noticed this in our own business, where total farm sales volume has increased by 50% in the past two years. As inventory continues to grow throughout 2025, sellers may find themselves competing for qualified buyers for the first time in a decade. Sellers should consider acting before the market becomes more saturated, while buyers may find improved opportunities as more listings emerge.

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Making Balanced Decisions with Hammond Realty

Whether you're considering selling your farmland or looking to expand your operation, Hammond Realty is here to provide expert guidance. Our team understands the unique challenges and opportunities in today's market, and we're dedicated to helping you make the best decision for your situation. With market indicators suggesting we may be approaching a transition point, timing becomes increasingly critical for sellers looking to maximize their return. Reach out to us today to discuss your goals and navigate the evolving market with confidence.