The value of equity in Canada’s farm sector climbed to a record $888.9 billion at the end of 2025, supported by rising farmland values, stronger livestock prices, and a rebound in crop inventories.
Statistics Canada data released Thursday showed farm equity increased by $54.5 billion, or 6.5%, from a year earlier. That followed equity gains of 5% and 7.8% in 2024 and 2023, respectively.
Equity increased in every province in 2025 except British Columbia, where it declined 1.7%. Alberta posted the largest percentage increase at 11.6%, followed by Manitoba at 10.1% and Saskatchewan at 9.9%. Ontario farm equity increased a much more modest 1.4% in 2025.
Total national farm assets rose $66.7 billion, or 6.7%, to about $1.1 trillion as of Dec. 31, 2025. Nearly three-quarters of the increase came from farm real estate, with farmland values rising $46.4 billion to $759.7 billion.
Farm real estate values increased in all provinces except British Columbia and Newfoundland and Labrador.
Crop inventory values also recovered after two consecutive years of double-digit declines. They rose $1.7 billion, or 6.9%, to $25.7 billion. Improved growing conditions during the previous two years lifted on-farm crop stocks by 11.5%, more than offsetting a 4.1% decline in prices amid larger production and continued geopolitical uncertainty.
The value of poultry and market livestock inventories surged 29.2% to $21.3 billion, largely because of higher commodity prices rather than expanding animal numbers. Values increased in every province except Prince Edward Island.
Meanwhile, the strengthening asset position was accompanied by another increase in farm debt in 2025. Total liabilities rose $12.2 billion, or 7.7%, to $171.2 billion. Long-term liabilities increased 9%, accounting for the entire rise, while current liabilities declined 1.4% in their first annual drop since 2021.
Liabilities increased in eight provinces, led by gains of 10.4% in Alberta and 7.7% in Ontario.
Farm businesses nevertheless became better positioned to manage their borrowing costs, Statscan said. The sector’s interest coverage ratio rose to 2.63 after declining for two consecutive years. Lower interest rates and higher net farm income, supported by stronger crop production and larger year-end inventories, contributed to the improvement.
Although that marked an improvement from 2024, the measure remained below its five- and 10-year averages, StatsCan said.
