The average value of Canadian farmland continued its upward trajectory in 2024, increasing by 9.3 per cent, according to the latest FCC Farmland Values Report.
While this represents a slight decrease from the 11.5 per cent growth reported in 2023, the overall trend indicates a resilient demand for agricultural land across the country.
In Ontario, average cultivated farmland values saw a modest increase of 3.1 per cent in 2024. This escalation follows significant jumps in previous years—10.7 per cent in 2023 and 19.4 per cent in 2022 — a trend that signals a cooling off in some regions of the province.
“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” says J.P. Gervais, FCC’s chief economist.
He cites a limited supply of farmland and lower borrowing costs contributing to the consistent rise in prices.
Regional Highlights: Saskatchewan and British Columbia Lead the Way
Among the provinces, Saskatchewan reported the highest increase in farmland values, with an impressive gain of 13.1 per cent. British Columbia followed with a growth of 11.3 per cent. Other provinces experienced more moderate increases, with New Brunswick’s cultivated land values rising by 9.0 per cent, Quebec at 7.7 per cent, and Alberta close behind at 7.1 per cent. Manitoba had a growth rate of 6.5 per cent, Nova Scotia saw a 5.3 per cent appreciation, and Ontario’s farmland values increased by 3.1 per cent. Prince Edward Island, in contrast, exhibited stability with an increase of just 1.4 per cent.
British Columbia, Alberta, and New Brunswick were the only provinces to report higher growth rates for farmland values in 2024 compared to 2023. However, there was insufficient sales data from Newfoundland and Labrador, Northwest Territories, Nunavut, and Yukon to fully assess changes in those regions.
The Impact of Climate on Land Valuation
Recent dry conditions across the prairies have resulted in increasing demand for irrigated land, highlighting a growing interest in this limited resource.
“With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability,” Gervais says, emphasizing the necessity of such land in today’s increasingly volatile climate.
Affordability Concerns Amidst Rising Values
Despite the appreciation in farmland values, Gervais underscores concerns about the affordability of land relative to farm income. This rising cost makes it increasingly challenging for aspiring farmers, including young producers, Indigenous communities, and new entrants, to expand their land holdings.
“While farmland value appreciation is slowing, farmland affordability continues to deteriorate, creating barriers for those looking to grow their operations,” he says.
In light of these challenges, the estimated total Canadian principal field crop production for 2024 is projected at 94.6 million tonnes, up 2.7 per cent from the previous year and 3.3 per cent above the five-year average. However, this increase comes against a backdrop of declining prices for grains, oilseeds, and pulses, which contributed to an estimated 11.8 per cent drop in main field crop receipts in 2024.
“The profitability pressures combined with the current uncertainty regarding trade disruptions create significant headwinds for farm operations looking to invest,” Gervais says.
A Testament to Demand for Agricultural Commodities
Despite these challenges, the increase in farmland values is seen as a strong indicator of the demand for agricultural commodities and the high-quality food produced in Canada.
“Overall, the increase in farmland values is a testament to the strong outlook for the demand for agricultural commodities,” Gervais says.
The FCC has documented a national trend of increasing farmland values for over three decades, with 2024 continuing this trend. The persistent growth reflects the strength of demand for quality farmland amid a limited supply available for sale.
