Canadian farmland values continued to rise in 2025, with the Prairie provinces leading the way and outperforming the national average, Farm Credit Canada’s annual Farmland Values Report on Tuesday showed.
Even as higher borrowing costs, trade uncertainty and uneven crop returns created challenges for producers, demand for quality land remained strong across much of Western Canada.
According to the report, the average value of Canadian farmland increased 9.3% in 2025. Manitoba posted the largest gain in the country at 12.2%, followed by Alberta at 11.4% and Saskatchewan at 9.4%. Those increases were well ahead of Ontario’s 2.2% rise and Quebec’s 4.8% gain, while British Columbia recorded a 1.7% decline in average cultivated farmland values.
FCC said a limited supply of land for sale, lower interest rates, strong balance sheets for many producers and healthy livestock returns all helped support the market.
Manitoba saw particularly strong growth in the Parkland and Westman regions. Parkland farmland values jumped 17.7%, while Westman rose 15.1%, reflecting strong competition for available acres. The Central Plains-Pembina Valley region also posted a solid 9.3% gain. By comparison, the Interlake region was more uneven, with northern areas showing flat to slightly lower values after poor crop years, even though the region as a whole still posted an increase of 5.8%.
In Alberta, some of the strongest increases were recorded in the south. Dryland values near expanding irrigation districts climbed 16.4%, supported by scarce supply and competition from both dryland and irrigated operations. Irrigated land in southern Alberta increased 11.3%, while the Northern region gained 10.1% and the Central region rose 9.6%. Alberta’s Peace region posted an 8.9% increase, helped by continued buyer interest in lower-priced land and mixed farming opportunities.
Saskatchewan farmland values rose 9.4%, a slower pace than in the previous two years but still a strong gain. The largest increases were recorded in the North Western and North Eastern regions, both up 12.1%, as well as the East Central region, which rose 12%. The West Central region, by contrast, posted a more modest 4.8% increase. Irrigated land showed some of the sharpest gains in the province, with West Central and South Western irrigated parcels rising 19.2% as drought concerns and limited supply supported values.
Pastureland values also moved higher in 2025, though at a slower pace than cultivated land. Across the western provinces where FCC tracks that segment, Saskatchewan posted the largest gain at 7.6%, followed by British Columbia at 5.6%, Manitoba at 4.3% and Alberta at 3.5%. FCC said record cattle prices have helped support demand, but not enough to trigger a sharper run-up in pasture values because producers still carry long memories of prolonged drought in major cattle-producing areas. In regions such as northern B.C. and Alberta’s Peace country, some of the strongest gains were tied to demand for mixed-use and grazing parcels, while competition from lifestyle and part-time buyers also helped tighten supply.
