Farmland values in Ontario increased by 3.1 per cent in 2024, according to the latest FCC Farmland Values Report.
The increase is notably smaller than the 10.7 per cent rise seen in 2023 and the 19.4 per cent jump reported in 2022. Farm Credit Canada’s chief economist J.P. Gervais said the slower growth reflects stable demand for farmland combined with lower borrowing costs.
“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” Gervais said.
Nationally, Canadian farmland values climbed 9.3 per cent in 2024, down from an 11.5 per cent increase the year before. Saskatchewan recorded the highest increase at 13.1 per cent, while British Columbia followed with an 11.3 per cent jump.
In Ontario, farmland value growth was more moderate, with all but one region seeing slower increases. Gervais said Ontario’s smaller gain reflects more balanced conditions in the province’s farmland market compared to faster-growing regions.
“Farmland values are still rising, but the pace has eased in some areas as the market adjusts to economic conditions,” he said.
Persistent dry conditions across the prairies have contributed to increased demand for irrigated land, driving its value upward. Gervais noted this trend reflects irrigated land’s critical role in boosting crop production and overall farm profitability.
“With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability,” Gervais said.
Despite slowing growth rates, farmland affordability continues to be a concern. Gervais said rising prices present challenges for aspiring farmers, including young producers, Indigenous communities, and new entrants looking to expand their operations.
“Farmland affordability relative to farm income continues to deteriorate, creating significant headwinds for those hoping to expand their land base,” he said.
FCC has reported a steady increase in Canadian farmland values for more than 30 years. The organization says this trend reflects ongoing demand for quality farmland and a limited supply available for sale.
More insights and information on farmland trends is available online.
(Written by: Joseph Goden)