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🇨🇦🍁💵 Canada's farmland values continued to climb in 2024, FCC reports 🌾🐄🚜

Tuesday, 18 March 2025 06:32.PM

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.

"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, Quebec 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.

"Overall, the increase in farmland values is a testament to the strong outlook for the demand of agricultural commodities and the high-quality food produced in Canada," said Gervais.

FCC has reported a national trend of increasing farmland values for more than 30 years and 2024 extends the streak. The overall trend reflects the ongoing strength in demand for quality farmland and limited supply of farmland available for sale.

By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture achieve their goals.

SOURCE: Farm Credit Canada

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