The average value of Canadian farmland continued its steady climb in 2024, increasing by 9.3 per cent, slightly less than the 11.5 per cent increase reported in 2023, according to the latest FCC Farmland Values Report.

In Ontario, average cultivated farmland values increased by 3.1 per cent in 2024. A reduced rate of growth in cultivated farmland values was observed in all but one of Ontario’s regions. This modest increase followed a 10.7 per cent increase in 2023 and a 19.4 per cent increase in 2022.

“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” said J.P. Gervais, FCC’s chief economist. “The limited supply of farmland available for sale combined with lower borrowing costs resulted in an increase in the average price of farmland across the country.”

The highest increases were observed in regions with strong agricultural activity and favourable growing conditions. In 2024, Saskatchewan again led with a 13.1 per cent gain in average farmland values, and British Columbia recorded growth of 11.3 per cent.

All other provinces experienced growth in the single digits. New Brunswick’s cultivated land values grew by 9.0 per cent, Québec reported a 7.7 per cent change and Alberta was close behind at 7.1 per cent. Manitoba had a growth rate of 6.5 per cent and Nova Scotia reported a 5.3 per cent appreciation in value. Ontario’s cultivated average farmland value increased by 3.1 per cent and Prince Edward Island had the most stable values with an increase of 1.4 per cent.

Only three provinces reported higher growth rates in 2024 than 2023: British Columbia, Alberta and New Brunswick. There were insufficient publicly reported sales in Newfoundland and Labrador, Northwest Territories, Nunavut and Yukon to fully assess changes in farmland values in those regions.

Recent dry conditions across the prairies have led to a robust demand for irrigated land, with interest growing each year. Market availability of irrigated land is very limited. “With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability,” said Gervais.

Gervais points out that while farmland value appreciation is slowing, farmland affordability relative to farm income continues to deteriorate. This makes it challenging for those aspiring to grow their land base including young producers, Indigenous peoples and new entrants.

In 2024, total Canadian principal field crop production is estimated at 94.6 million tonnes, up 2.7 per cent from 2023 and 3.3 per cent above the five-year average. Lower prices for grains, oilseeds and pulses resulted in an estimated decline in main field crop receipts of 11.8 per cent in 2024. “The profitability pressures combined with the current uncertainty with regards to trade disruptions create significant headwinds for farm operations looking to invest,” mentioned Gervais.

Source:  Farm Credit Canada March 18, 2025 news release