A study of factors associated with land values in the proposed South Saskatchewan River Development
Date
1953
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
ORCID
Type
Degree Level
Masters
Abstract
The price paid for land has an important bearing on
the financial progress achieved by farm operators over a farming
period in its effect on the capital position of the operator.
The original outlay for land largely regulates the speed
of development of the farm and the degree of efficiency which
can be maintained in farming operations. Where prices are
excessive, development is considerably slower than where prices
are at levels that may be considered more "acceptable." Acquisition
of equipment and other working capital to reach efficient
levels of operation is delayed. The normal consequence of these
processes is a slowing down of subsequent expansion reflected in
a lesser rate of financial progress over the operator's lifetime,
and a lower level of living, which often is attended by resultant
losses to the community as a whole.
Where the earning power of the land is forced in an
effort to meet heavy purchase payments, there is the danger
that the farmer will resort to farming practices which may be
contrary to good conservation, with resultant loss of soil
fertility, further reducing the earning power of the land.
Such losses are not only felt by the farmer, but by the community
as a whole, when a series of serious drought years,
such as witnessed in the Province of Saskatchewan in the
depressed period known as the "hungry thirties," was accompanied
by severe drifting of soil. Such conditions become cumulative
and recovery from the effects of soil depletion and other deterioration
becomes almost irrecoverable with severely depressing
effects when extended over a period of time. Effects of
excessive land prices in this regard are in evidence in the
form of serious instability of ownership and depletion of soil
and farm capital beyond the point at which recovery is possilble.
In view ot the effects of inappropriate land values,
there is reason to consider suitable processes which will tend
to promote land values at levels that can be financed on the
basis of the earning power of the land. The concept of an
appropriate value level would make allowance for reasonable
economic progress and an attractice standard of living for
the farmer.
A special problem with regard to the appropriateness
of land purchase values arises in connection with irrigation
development. Such development normally involves high land
values arising out of the cost of developing the irrigation
system. At the same time the process ot irrigation development
usually involves a lengthy development period in which
the earning power of farms remains below its mature potential.
In turn, anticipations of high returns from irrigation tend
to promote speculative demands for land which exert additional
upward pressure on values
.As against these forces promoting high prices for
irrigation lands, the high capital requirements of irrigation
farming involve an additional need for retaining sufficient
income for favourable farm development. The irrigation farmer,
therefore, is normally faced with even more harmful effects
from excessive land values than those which often confront
the dryland operator.
The above features have focussed attention on the
need for considering more carefully the basis of land values
which is established for irrigation operators in the process
of developing an irrigation area.
This study is concerned with land values in the area
of the proposed South Saskatchewan River Development as they
may relate to the process of establishing suitable levels of
land values in the process of developing the area. Specifically,
it considers the position of land administration for the area.
Its objective is to furnish an analysis of existing dryland
values in terms of the pattern of values and the factors
associated with values, which may guide selection of suitable
standards of dryland values for the area.
Description
Keywords
Citation
Degree
Master of Science (M.Sc.)
Department
Farm Management
Program
Farm Management