Regina (Rural Roots Canada) – Farmland values across Canada continued their steady upward trend in 2024, with the average price of farmland increasing by 9.3 per cent, according to Farm Credit Canada’s latest Farmland Values Report.

While the pace of growth slowed slightly compared to the 11.5 per cent increase recorded in 2023, FCC Chief Economist J.P. Gervais says the market remains strong despite some pressures.

“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” Gervais said. “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.”

Alberta saw an average increase of 7.1 per cent in farmland values—outpacing the province’s growth rate in 2023. Gervais noted that persistent dry conditions across the prairies have created strong demand for irrigated land, especially in southern Alberta, where availability remains tight.

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

COMPARE: Canadian Farmland Values Rise in First Half of 2024: FCC

Nationally, Saskatchewan led the country with a 13.1 per cent jump in average farmland values—its third consecutive year of double-digit increases. British Columbia followed closely with an 11.3 per cent rise.

Other provinces experienced more modest growth: New Brunswick (9.0%), Quebec (7.7%), Manitoba (6.5%), and Nova Scotia (5.3%). Ontario saw a 3.1 per cent increase, while Prince Edward Island reported the most stable land values, rising just 1.4 per cent.

Only British Columbia, Alberta, and New Brunswick saw higher growth rates than the year prior.

However, the report also highlights a growing concern: affordability. Despite slowing appreciation, farmland remains increasingly expensive relative to farm income, making it more difficult for young producers, Indigenous farmers, and new entrants to expand their operations.

This affordability squeeze comes amid broader economic challenges. FCC estimates total Canadian principal field crop production reached 94.6 million tonnes in 2024, up 2.7 per cent from 2023 and 3.3 per cent above the five-year average. However, declining commodity prices contributed to an 11.8 per cent drop 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,” said Gervais.

Still, he says the long-term outlook remains positive.

“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,” he said.

FCC has recorded rising farmland values for more than 30 years, and 2024 continues that trend, driven by strong demand and a limited supply of land for sale.