Canada’s farmland values grew at a slower pace in 2024: FCC
Farmland values in Canada grew at a slower pace last year, but prices remain elevated across the country.
Cultivated land values increased by 9.3% in 2024, Farm Credit Canada (FCC) shared this week in its annual Farmland Values report.
That’s down slightly from 11.5% in 2023 and 12.8% in 2022.
Only three provinces reported higher growth rates in 2024 compared to 2023: British Columbia, Alberta and New Brunswick.
All other provinces saw single-digit growth, FCC said.
The highest increases were observed in regions with strong agricultural activity and favourable growing conditions—namely Saskatchewan (13.1%) and British Columbia (11.3%).
New Brunswick's cultivated land values grew by 9%. Quebec reported a 7.7% change and Alberta was close behind at 7.1%.
Manitoba had a growth rate of 6.5% and Nova Scotia reported a 5.3% appreciation in value.
Ontario's cultivated average farmland value increased by 3.1% and Prince Edward Island had the most stable values with an increase of 1.4%.
FCC said there were insufficient publicly reported sales in Newfoundland and Labrador, Northwest Territories, Nunavut and Yukon to fully assess changes in those regions.
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Recent dry conditions across the prairies have led to a robust demand for irrigated land with interest growing each year. FCC noted that market availability of irrigated land is very limited.
"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, in a press release. "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."
Gervais added that while farmland value appreciation is slowing, farmland affordability relative to farm income continues to decline.
FCC said this makes it more difficult for young producers, Indigenous peoples and new entrants to buy or expand.
In 2024, total Canadian principal field crop production is estimated at 94.6 million tonnes, up 2.7% from 2023 and 3.3%t 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% in 2024, FCC reported.
"The profitability pressures combined with the current uncertainty with regards to trade disruptions create significant headwinds for farm operations looking to invest," Gervais stated.
FCC has reported a national trend of increasing farmland values for more than 30 years.
