Ontario Land Rental Rates Are Rising to Record Highs

When agricultural commodity prices rise there are expected effects. Costs like fertilizer prices and machinery costs are always natural to rise in a rising commodity market. One of the costs that has not been discussed much is rising farmland rent costs.

Ontario has some of the highest land rent rates in Canada for the major crops. Some rental prices for soybean and corn land have been rumored to be as high as $400 per acre. One Chatham, ON farmer said to me that $400 per acre is getting pretty steamy for corn soybean land that does not have tomatoes. Another point that was mentioned to me is that a lot of the land rental in Ontario is not on long term contracts due to the volatile commodity prices. If true this would be different than many agreements that I am familiar with in the west that work on 5, 7, or ten years.

Trying to expand in a bull market can be pricey and the rising land rent is proving to be the case for many farmers in Ontario. I am sure that this is no different in Western Canada but just not to such extreme highs due to inability to produce soybeans and corn like in Ontario.

On another note I heard from a source that in the Chatham / Blenheim area land sold for $12,000 per acre with the capability of growing some tomatoes. That’ll add some debt to your balance sheet.

I asked FCC at the London Farm Show about land rental rates in Ontario and how they see prices shaking out. I also asked George how farmers pencil out or assign value to land rental rates.

If you cannot see the embedded video below click here.

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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16 Comments

Adria Kostic

As a land owner in Durham Region (Ontario), I have been leasing approximately 33 acres out to a local grain farmer for several years, to harvest soy beans or corn (alternately).
I have been advised by several other local farmers that the rate I am charging is way bellow the going rate. I am curious to find out what the approximate going rate would be in our area. I believe that we are in area 4!
I would truly appreciate any information you could provide!
P.S.
Our land is known to be extremely fertile, with excellent returns!
Thank you kindly!

Reply
jan

adria: Did you manage to rent your land out? If so what rate…if you would share that with me. I am in clarrington region and want to
know what i can ask to rent my land out.
Thanks in advance

Reply
Wendell Joyce

I would be interested to know generally what that land rental rates are in the GTA. As a farm advisor I try to stay informed but this market is certainly not a transparent and open one. I’m hearing rates from 0-400 across the province, depending on location, land quality, size, crop, motivations of the land owner, etc.Most farmers keep this information close to their chest so as not to be outbid and I certainly understand that.

Any tidbits of information would be appreciated.

Reply
Ian Campbell

Hello Shawn, we have recently moved to a large acreage in Maxwell Ontario and we were wondering who we would contact about renting out approx 50 acres on our property that are currently being farmed by a local farmer. We had no idea how much the land would be worth and just charged what the previous owner had ($500 yearly). We would appreciate any information you might be able to pass along.
thank you

Reply
Bob

Hello Shawn: We have recently been approached to rent 50 acres of our property for farming. Some 10 years ago, we dealt with a farmer who was growing alternately corn & soybean. He paid us ($500 per year) which later we were told was well below what we could have been getting. We still have no idea how much the land is worth or what to charge and don’t want to make the same mistake. Land is in short supply in our area and we have friends who are getting $500 an acre for their land. We would appreciate any information or advice. (We are in Eastern Ontario).

thank you.

Reply
J brisson

Shawn, where can a landowner get information on the rental value of his land ? I am in Eastern Ontario and would like to know how much more I could be getting for my land.

Reply
CharleeR

At $500/acre, there is no profit in it for the farmer doing all the work, expending all the money, fertilizer, equipment, etc, and taking all the risks. Current land rental rates in mid-ON range from $35 – $90/ac. It depends on the soil quality, if it is tile drained or not, level or hilly, etc, etc.

Reply
Bonnie

Hello everyone. I need help to connect with a farmer or a owner of farm who can rent to me only 2 acres of land to grow for my personal needs. I would need it not too far from Toronto.
Please email me at [email protected]. I need it for this spring to fall season.

Thank you
Bonnie

Reply
Fred and Lynda Helwig

We’re interested in renting land from our municipality, with the form, I was just wondering if there is HST added to the amount of the rent we have submitted?

Reply
Phil

I have 19 acres for rent in north Oshawa- It is usually planted with Soy or feed corn. Im an not getting enough for the land.

Reply
jan

Phil: I am in clarrington township and have land to rent. Can you share with me what you are getting per acre?
Thanks
Jan

Vijay

Hello. I need help to connect with a farmer or a owner of farm who can rent to me only 1-2 acres of land to grow for my personal needs. I need in the land in Pickering/Markham/Ajax/Whitby
Please email at [email protected]. I need it for 2016 spring to fall season.

Thank you
Vijay

Reply
Sorina

Hello, I am interested in farming a vegetable garden (berries etc) in a senior’s (or anyone else) backyard of a house in Hamilton. Also potentially a farmer or owner of a farm to rent me 1-2 acres of land to grow for my personal needs. In the Hamilton, Ancaster, Stoney Creek region. I’m a mature lady looking to spend my newfound retirement in a pleasant and productive way. My email is [email protected].
Thank you, and as spring is coming I would like to hear from you soon.

Reply
Anne

Hello,
What is the going rate for renting farm land in Eastern Ontario close to Quebec. The land is all cultivated in good hay. We have about 20 acres. Thank you.

Reply
Catherine Huang

An update would be welcome. As one comment above noted, this is not a transparent and open market. We’re feeling it’s probably time to update the rent we’ve been charging for our 25 workable acres… we’re charging the same that the former owner charged 25 years ago. But we can’t seem to get an idea of what would be fair.

Reply

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