Saskatchewan continues to offer some of the lowest per-acre values in the country
Saskatchewan led the nation with the highest increase in farmland values, which surged by 13.1% in 2024. This follows a 15.7% increase in 2023 and a 14.2% rise in 2022. Saskatchewan continues to offer some of the lowest per-acre values in the country, while also boasting the largest number of cultivated acres nationally.
The average value of Canadian farmland rose by 9.3 percent in 2024, continuing a steady upward trend observed in recent years, according to the latest FCC Farmland Values Report. While the increase was slightly lower than the 11.5 percent growth recorded in 2023, the upward trajectory highlights the sustained demand for farmland despite some pressure on commodity prices.
J.P. Gervais, Chief Economist at Farm Credit Canada (FCC), explained that the 2024 rise in farmland values reflects a combination of strong demand for agricultural land and limited supply. “The increase in farmland prices reflects an ongoing strength in demand for land, coupled with lower borrowing costs and a constrained supply of land available for sale,” Gervais stated.
The provinces with the most notable increases in farmland values were those with strong agricultural output and favorable growing conditions. As noted above, Saskatchewan once again led the way, while British Columbia followed closely with an 11.3 percent growth rate.
Other prairies provinces saw more moderate increases, with Alberta at 7.1 percent and Manitoba's farmland values increasing by 6.5 percent.
Three provinces—British Columbia, Alberta, and New Brunswick—reported higher growth rates in 2024 than in 2023, signaling regional variations in farmland demand.
One key factor behind the rise in farmland values is the growing demand for irrigated land, particularly in response to persistent dry conditions across the prairies. Gervais highlighted the increasing value of irrigated land, noting that its scarcity and essential role in boosting production during dry spells have made it highly sought after. "The value of irrigated land continues to climb as it becomes more crucial to maintaining high production levels and ensuring farm profitability," he said.
When asked why farmers are still willing to pay such a big price per acre for farmland, Gervais said that when properties become available near them, they are very aware of the fact that the property will likely not surface on the market again for another 40 years. “Economies of scale matter,” Gervais said.
Gervais also commented that despite the land values, some beef farmers may be interested in buying pasture land as a way to combat drought conditions.
Despite the overall increase in farmland values, Gervais cautioned that farmland affordability is increasingly out of reach for many, especially young producers, Indigenous peoples, and newcomers to the agricultural sector. “While farmland values are rising, affordability relative to farm income continues to worsen, creating significant barriers for those looking to expand their operations,” he explained.
In 2024, Canada’s total principal field crop production is expected to reach 94.6 million tonnes, a 2.7 percent increase over the previous year and 3.3 percent higher than the five-year average. However, lower prices for grains, oilseeds, and pulses are expected to result in an 11.8 percent drop in crop receipts for 2024. Gervais pointed out that these financial challenges, coupled with uncertainty around trade disruptions, pose risks to farm operations looking to invest in land.
"Despite the pressures on farm income, the increase in farmland values underscores the strong demand for Canadian agricultural commodities and the country’s high-quality food production," said Gervais.
FCC has reported a national trend of rising farmland values for thirty years, and 2024 continues that trend. This consistent growth highlights the enduring demand for quality farmland and the limited availability of land, reinforcing the strength and resilience of Canada’s agricultural industry.