Canadian farmland values continued upward trend in 2024, FCC reports

The value of Canadian farmland maintained its upward trajectory in 2024, rising by 9.3 per cent according to the latest FCC Farmland Values Report. This increase, while slightly lower than the 11.5 per cent growth seen in 2023, underscores the persistent demand for farmland value despite pressures on commodity prices.

J.P. Gervais, FCC’s Chief Economist, explained that the rise in farmland values reflects strong demand coupled with limited availability and lower borrowing costs.

“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,” says Gervais.

Regions with robust agricultural activity and favourable growing conditions saw the highest increases. Saskatchewan led the way with 13.1 per cent gain, followed by British Columbia at 11.3 per cent.

Other provinces experienced single-digit growth. New Brunswick’s farmland values grew by 9.0 per cent, Quebec saw a 7.7 per cent increase, and Alberta was close behind at 7.1 per cent. Manitoba reported a 6.5 per cent rise, Nova Scotia saw a 5.3 per cent appreciation, Ontario’s farmland values increased by 3.1 per cent, and Prince Edward Island had the most stable values with a 1.4 per cent increase.

Only British Columbia, Alberta, and New Brunswick reported higher growth rates in 2024 compared to 2023. 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.

Dry conditions across the prairies have led to a strong demand for irrigated land, which remains scarce.

“With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability,” Gervais explains.

Despite the slowing appreciation of farmland values, affordability relative to farm income continues to decline, posing challenges for young producers, Indigenous peoples, and new entrants looking to expand their land base.

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. However, lower prices for grains, oilseeds, and pulses led to an estimated 11.8 per cent decline in main field crop receipts.

“The profitability pressures combined with the current uncertainty with regards to trade disruptions create significant headwinds for farm operations looking to invest,” says Gervais.

Overall, the increase in farmland values highlights the strong demand for agricultural commodities and the high-quality food produced in Canada.