Average value of Canadian farmland saw a steady increase of 9.3 percent in 2024
Ontario saw modest growth in farmland value compared to the rest of the nation, with average cultivated farmland values rising by 3.1% in 2024.
This marks a slowdown after a 10.7% increase in 2023 and a 19.4% rise in 2022. The slower growth was observed across most of the province, with the exception of the Central West region, where urban pressure spurred a significant 13.5% increase. Other regions, such as the Southern and South West areas, experienced smaller gains of 2.4% and 3.2%, respectively.
The average value of Canadian farmland saw a steady increase of 9.3 percent in 2024, continuing a multi-year upward trend, according to the latest FCC Farmland Values Report.
While the growth was slightly lower than the 11.5 percent increase recorded in 2023, the positive trajectory in farmland values remains a key indicator of robust demand and limited availability of agricultural land.
J.P. Gervais, Chief Economist at Farm Credit Canada (FCC), emphasized that the increase in farmland values highlights the strength of the Canadian agricultural sector despite pressures on commodity prices. “The limited supply of farmland available for sale, combined with lower borrowing costs, has resulted in an increase in the average price of farmland across the country,” Gervais said.
The provinces with the most significant increases in farmland values were those with strong agricultural activity and favorable growing conditions. Saskatchewan led the country with a 13.1 percent jump in farmland prices, while British Columbia followed closely with an 11.3 percent growth rate.
Other provinces experienced more modest growth, with New Brunswick seeing a 9.0 percent rise, Quebec at 7.7 percent, and Alberta at 7.1 percent. Manitoba’s farmland values increased by 6.5 percent, while Nova Scotia saw a more modest 5.3 percent appreciation. Prince Edward Island’s farmland values were the most stable, growing by just 1.4 percent.
Notably, only three provinces—British Columbia, Alberta, and New Brunswick—experienced higher growth rates in 2024 compared to the previous year.
Despite the upward trend in farmland values, Gervais cautioned that affordability relative to farm income is becoming a growing concern. “Farmland affordability continues to deteriorate, making it increasingly difficult for those looking to expand their land base, including young producers, Indigenous peoples, and new entrants to the agricultural sector,” he explained.
In 2024, Canada’s total principal field crop production is estimated at 94.6 million tonnes, up 2.7 percent from the previous year and 3.3 percent above the five-year average. However, due to lower prices for grains, oilseeds, and pulses, farm receipts for main field crops are expected to decline by 11.8 percent in 2024.
Gervais noted that these profitability pressures, coupled with uncertainties regarding trade disruptions, pose significant challenges for farm operations looking to invest in land.
“The overall increase in farmland values is a testament to the strong demand for agricultural commodities and the high-quality food produced in Canada,” said Gervais. “Despite the challenges, the demand for farmland remains high, ensuring the ongoing strength of the agricultural sector.”
FCC has reported a national trend of increasing farmland values for more than 30 years, and 2024 extends that streak. This ongoing trend reflects the continued strength of demand for quality farmland and the scarcity of available land for sale, solidifying the outlook for the agricultural industry in Canada.