Regina (Rural Roots Canada) – Canadian farmland rental rates remained relatively stable in 2024, despite another significant rise in land values, according to a report from Farm Credit Canada (FCC).

Nationally, the average rent-to-price ratio, which measures the return on rented land relative to its market value, dropped slightly to 2.50%, nearly unchanged from 2.52% in 2o23. This indicates that rental rates haven’t kept pace with the 9.3% increase in farmland values recorded over the previous year.

The report, which focuses on cash rental agreements, shows regional differences in rental markets across Canada. In Saskatchewan and New Brunswick, rental rates have adjusted more quickly to land value increases. Other provinces saw little to no change in rental prices.

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

Since 2020, renting land has generally become more advantageous compared to purchasing, particularly in Manitoba, Ontario, and Quebec, all of which saw increases in the per-acre cash flow benefits of renting. Ontario led the way with a $620 gain per acre.

FCC says farmers need to look at both short-term costs and long-term value when choosing to rent or buy farmland. It emphasizes that the decision to rent or buy depends on a range of financial and operational factors.

You can learn more by visiting the Farm Credit Canada website.