The average value of Canadian farmland continued to climb in 2024, increasing by 9.3 per cent, less than the 11.5 per cent increase reported in 2023, according to the 2024 FCC Farmland Values Report.
“The limited supply of farmland available for sale combined with lower borrowing costs resulted in an increase in the average price of farmland across the country,” says J.P. Gervais, FCC’s chief economist, noting that falling crop prices will also have had an impact.
Once again, Saskatchewan showed the strongest growth at 13.1 per cent gain in average farmland values. British Columbia recorded growth of 11.3 per cent, but all other provinces posted single digit growth.
The lowest growth rate was posted in Ontario at 3.1 per cent and Prince Edward Island at 1.4 per cent.
New Brunswick’s cultivated land values grew by 9 per cent, Quebec reported a 7.7 per cent change and Alberta was close behind at 7.1 per cent. Manitoba had a growth rate of 6.5 per cent and Nova Scotia reported a 5.3 per cent appreciation in value.
Only three provinces reported higher growth rates in 2024 than 2023: British Columbia, Alberta and New Brunswick. There were insufficient publicly reported sales in Newfoundland and Labrador, Northwest Territories, Nunavut and Yukon to fully assess changes in farmland values in those regions.
Gervais cautions that not only is farmland appreciation slowing, but farmland affordability relative to farm income also continues to deteriorate. Lower prices for grains, oilseeds and pulses resulted in an estimated decline in main field crop receipts of 11.8 per cent in 2024.
“The profitability pressures combined with the current uncertainty with regards to trade disruptions create significant headwinds for farm operations looking to invest,” says Gervais.
Download the full report and view past reports, here.
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