Southwestern Ontario farmland values rose modestly in 2025, bouncing back after a small decline the previous year.
A new report released Friday showed farmland values across 11 southwestern Ontario counties increased by an average of 2.7% this past year, compared to the 1.4% decline registered across the same 11 counties in 2024.
The report, prepared by Ryan Parker, partner and agricultural appraiser at London, ON-based Valco Consultants, pegged the average per acre value of farmland in the 11 counties at $27,258 this past year, up from $26,530 in 2024.
The largest increase in farmland values in 2025 was seen in Bruce County at up 6%, followed by Huron (+4.1%), Essex and Wellington (2.8%), Kent (+2.3%), Middlesex (1.5%), and Elgin (+1.4%). Oxford (+0.7%), Perth (0.5%), and Grey (+0.2%) were little changed. Lambton was the only county to see a year-over-year decline in farmland values, down 3.8% from 2024.
In his accompanying commentary, Parker said the agricultural sector generally held up well in 2025, despite numerous challenges, including weak prices and continued high input costs, dry weather in parts of the province, and trade uncertainty.
Meanwhile, the livestock sectors, specifically beef and hogs, enjoyed very good margins in 2025, helping to keep land values firm in the livestock-heavy areas of the province.
“Southwestern Ontario farmland had another steady year overall,” Parker said. “There were some small pockets that made sizable leaps in 2025, but there were also some pockets with soft demand and retreating prices.
“The core livestock areas of Ontario were generally strong, as were the northern areas like Grey-Bruce, while many of the areas southwest of London and along Lake Erie where there are much fewer livestock operations lacked demand.”
Parker noted the lack of demand seems more apparent in the expired listings/tenders of farms than it is in selling prices. Indeed, the number of active listings and offerings of farm properties for sale is up “significantly” from three years ago, as is the number of farms offered for sale but do not end up selling, he said.
“As margins have tightened, especially in the crop sector, buyers have logically become more selective, which has resulted in overpriced farms not selling.”
Looking ahead to 2026, Parker said he generally expects more of the same for the southwestern Ontario farmland market. Crop prices and interest rates are likely to be little changed compared to 2025.
Demand for farmland may continue to run higher in the livestock heavy areas and locations farther north, while southern areas with less livestock may see less demand.
“The key factor to watch will be the response from (farmland) vendors,” Parker said. “If vendors lower their expectations, it is possible that could drag overall farmland values down.”
