It is a modest increase compared to the previous year
The value of Canadian cultivated farmland saw an increase in the first half of 2025, a report by the Farm Credit Canada (FCC) found.
In its mid-year farmland values review, the values rose by 6% on average, which was a modest rise from the 5.5% increase seen in the first half of 2024. From July 2024 to June 2025, there was a recorded 10.4% increase, which was a slight uptick from January to December 2024’s 9.3%.
According to the report, the growth reflected the mix between market forces and dynamics of regions. FCC Chief Economist J.P. Gervais pointed out the strength of the demand for farmland in the first half of the year despite the lower commodity prices.
“Buyers continued to invest, driven by long-term confidence in the agriculture sector and the limited supply of available land. While growth is uneven across provinces, the overall trend points to promising growth opportunities in agriculture,” said Gervais.
Some provinces were recording notable increases but some saw flat numbers. Manitoba saw the highest increase with 11.2%. It was followed by New Brunswick and Alberta with 9.4% and 6.6%, respectively. As Saskatchewan had the same number as the national average of 6%, Quebec, Prince Edward Island, and Nova Scotia only saw modest gains with 2.6%, 2.3%, and 1%, respectively. Meanwhile, Ontario and British Columbia did not see any changes at all.
Overall range of sale prices per acre only saw a modest increase over the past six months. The market is seeing a stabilizing trend as previously strong provinces in terms of growth were now experiencing a softening in farmland prices as previously modest provinces continue having solid gains.
According to Gervais, grain and oilseed receipts saw a slight increase in early 2025, which varied by crop and region. These receipts were expected to decline overall by 6% by the end of the year. The easing interest rates as well as healthy farm balance sheets may support the farmland values. However, the farm economy may see a more cautious environment for the second half of 2025 and 2026 in terms of farmland demand.
"The interplay between interest rates, farm revenues and expenses, and constrained land availability will continue to shape the trajectory of farmland values,” said Gervais.
