NOT ALL FARMLAND HAS THE SAME VALUE

NOT ALL FARMLAND HAS THE SAME VALUE

Two identical quarters. Two different tenants. Ten years later, one is worth far more than the other.

The 10-year cost of a land-mining tenant: $1,150 to $2,100 per acre
On one quarter section (160 acres): $185,000 to $335,000

PER ACRE, OVER 10 YEARS

Land value in year 10
Good steward: ~$6,500
Land miner: ~$5,200 to $5,900

Buyer discount at sale (weeds, depleted soil)
Good steward: None, full market value
Land miner: –$650 to –$1,300

Lost production (yield drag up to ~15%)
Good steward: Stable or improving
Land miner: –$300 to –$400

Restoration (weed cleanup, rebuilding P & K)
Good steward: Minimal
Land miner: –$200 to –$400

Total economic impact
Good steward: Value protected
Land miner: –$1,150 to –$2,100

WHY THE GAP GROWS

Weeds are a liability. Resistant kochia, wild oats and thistle take years to clean up, and buyers price that in.

Fertility gets mined. Skipping P & K replacement borrows from the soil bank, and the next owner repays it.

Soil takes a decade to rebuild. Lost organic matter means weaker yields and less drought resilience.

Rent capacity drops. Degraded land earns less rent, which lowers its value to investors.

An extra $10–20/acre in rent never covers $1,000+/acre in lost value.

Protect your land:
– Fertility and weed-control clauses in the lease
– Baseline soil tests, repeated every 3–4 years
– Limits on straw removal
– The right to inspect, with remedies for non-performance

Ben Van Dyk
Farm & Land Real Estate Agent · Certified Agricultural Farm Advisor · Real Estate Centre
403.393.4040 · FarmInvestor.com

Illustrative estimate, not an appraisal. Assumes $4,000/acre dryland, 5% annual appreciation, and ~$450/acre gross revenue. Alberta farmland values rose 11.4% in 2025 (FCC)

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