Canadian farmland values climb steadily in 2024
Demand remains firm despite rising costs, market uncertainty
3 April 2025
2 minute read
By: Canadian farmland values rose by an average of 9.3% in 2024, according to Farm Credit Canada’s latest report, marking continued strong growth in the face of profitability pressures and market volatility. While the pace slowed slightly from 2023, the increase still surpassed the five- and ten-year averages.
Saskatchewan led the nation with a 13.1% jump in average farmland values, largely due to its vast cultivated acreage. British Columbia (11.3%) and New Brunswick (9.0%) followed, while provinces like Ontario (3.1%) and Prince Edward Island (1.4%) posted more modest gains.
"Despite elevated borrowing costs and narrowing profit margins, producers are still investing in land," said Corbin Chau, data analyst at FCC. "The supply of farmland remains tight, and that’s helping to support values."
Demand for irrigated land was especially robust in drier regions. Saskatchewan reported an eye-catching 25.8% increase, while Alberta saw gains of 8.6%. British Columbia and Manitoba posted smaller rises. Development efforts like the Westside Irrigation Rehabilitation Project underscore the growing importance of water infrastructure.
Pastureland values also rose, albeit more modestly. Saskatchewan again topped the list with an 8.9% increase, driven in part by rising cattle receipts. However, FCC notes that profitability in the cattle sector is cooling, tempering further growth.
While interest rate cuts by the Bank of Canada in 2024 offered some relief, borrowing costs remained comparatively high. Looking ahead, Chau warned of potential headwinds:
"Volatility is expected to be significant in 2025, particularly due to trade risks at the US-Canada border," he said.
Despite uncertainties, the long-term fundamentals of Canadian farmland remain solid, bolstered by productivity gains, tech adoption, and economies of scale in farming operations.
