The cost of farmland in Canada continued to rise in 2024, extending a decades-long trend of increasing values, according to the latest Farmland Values Report from Farm Credit Canada (FCC).
Released on March 18, 2025, the report shows an average national farmland value increase of 9.3 percent in 2024. While this marks a slowdown from the 11.5 per cent increase reported in 2023, it still signals strong demand for farmland across the country.
Ontario farmland values saw a more modest rise, increasing by 3.1 per cent in 2024. This follows a 10.7 per cent jump in 2023 and a significant 19.4 per cent spike in 2022. FCC noted that farmland price growth slowed in nearly all regions of the province last year, reflecting shifting market conditions.
"The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices," said FCC Chief Economist J.P. Gervais. "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 largest farmland value increases were recorded in regions with strong agricultural activity and favorable growing conditions. Saskatchewan once again led the country with a 13.1 per cent rise in average farmland values, while British Columbia followed with an 11.3 per cent increase. Only three provinces (British Columbia, Alberta, and New Brunswick) reported higher growth rates in 2024 than in 2023.
Persistent drought conditions across the Prairie provinces have intensified demand for irrigated farmland, with limited supply driving up prices in 2024.
"With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability," said Gervais.
The scarcity of irrigated land in key agricultural regions has led to heightened competition among producers looking to secure reliable water sources for crops.
Despite the continued appreciation in farmland values, concerns remain about affordability for farmers, especially those looking to expand their operations or enter the industry for the first time.
Adding to these challenges, Canadian farms faced financial pressures in 2024 due to lower commodity prices. FCC estimates that total field crop production in Canada reached 94.6 million tonnes, a 2.7 per cent increase from 2023 and 3.3 percent above the five-year average. However, lower prices for grains, oilseeds, and pulses contributed to an estimated 11.8 percent decline in farm revenue from these crops.