Canadian farmland values are still climbing although the gains are uneven, according to Farm Credit Canada’s mid-year farmland values review.
Released Wednesday, the report shows cultivated farmland values rose an average of 6% in the first half of 2025, slightly faster than the 5.5% gain during the same period in 2024. Over the 12 months from July 2024 to June 2025, values rose 10.4%, up from a 9.3% increase in the previous 12-month period.
However, the national figure masks wide variability between provinces. Manitoba led farmland value growth over the past six months with an 11.2% increase, followed by New Brunswick at 9.4% and Alberta at 6.6%. Saskatchewan matched the national average at 6%, while Quebec (2.6%), Prince Edward Island (2.3%), and Nova Scotia (1%) posted only modest gains. Ontario and British Columbia saw no change, underscoring the uneven nature of the market.
“Demand for farmland remained strong in the first half of the year regardless of lower commodity prices,” said J.P. Gervais, FCC’s chief economist. “Buyers continued to invest, driven by long-term confidence in the agriculture sector and the limited supply of available land. While growth is uneven across provinces, the overall trend points to promising growth opportunities in agriculture.”
Despite notable increases in several regions, the overall range of sale prices per acre has moved up only modestly. Provinces that experienced sharp appreciation in recent years are now seeing signs of softening, while regions with more moderate past growth continue to show solid momentum. The broader market appears to be stabilizing, FCC said.
The farmland gains come against a backdrop of tighter farm incomes. Farm cash receipts declined 1.6% in 2024, largely due to weaker grain and oilseed revenue, though livestock receipts offset some of the loss. Early 2025 brought a slight rebound in crop revenues, but FCC projects overall receipts for grains and oilseeds will still fall by 6% this year.
At the same time, FCC said Easing interest rates and healthy balance sheets from record crop years in 2022 and 2023 provide underlying support to farmland values. Still, the federal ag lender cautioned that the demand outlook may be more restrained through the second half of 2025 and into 2026.
“The interplay between interest rates, farm revenues and expenses, and constrained land availability will continue to shape the trajectory of farmland values,” Gervais said.
In Ontario, the lack of growth in farmland values over the last six months reflects a market pause after several years of strong gains. Softer commodity prices, high input costs, and the fact that a significant portion of land has traded hands in recent years are collectively slowing demand across the province, FCC said.
As for Manitoba, the Parkland and Westman regions are seeing the strongest growth, FCC said. In Parkland, large grain operations are actively strengthening their land base. Historically, sales were limited, but steady upward pressure has been building, and recent transactions now reflect those cumulative gains. “Strong demand combined with limited supply has created a highly competitive environment for land acquisition,” FCC said.
The increase in Saskatchewan farmland values appears concentrated in premium-quality farmland, which is in high demand due to historically strong yields and limited supply. Most value increases are occurring in the northern and eastern regions of Saskatchewan, whereas the west-central and southwest areas are seeing slower growth, largely due to prolonged drought conditions in recent years.
Gains in Alberta were led by the Peace and southern regions. In the Peace region, market activity has been influenced in part by land auctions, which appear to be elevating acreage costs in surrounding areas by broadening the buyer pool and fostering competitive bidding. In southern Alberta, irrigated land continues to set new price benchmarks, creating upward pressure on nearby dryland parcels. Strong cattle prices have also supported notable feedlot expansions.
