By Alice McFarlane

Farmland values rise in first half of 2025: FCC report

Oct 3, 2025 | 1:33 PM

Canadian cultivated farmland values rose by an average of 6.0 per cent in the first half of 2025, according to the mid-year farmland values review by Farm Credit Canada (FCC).

This is a modest increase compared to the first half of 2024, which saw a 5.5 per cent increase. Over the 12 months from July 2024 to June 2025, there was a 10.4 per cent increase compared to the previous 12-month period of January to December 2024.

Manitoba led the country with an 11.2 per cent increase, followed by New Brunswick at 9.4 per cent and Alberta at 6.6 per cent. Saskatchewan matched the national average at 6.0 per cent, while Quebec, Prince Edward Island, and Nova Scotia posted modest gains. Ontario and British Columbia recorded no change.

J.P. Gervais, FCC’s chief economist, said demand for farmland remained strong in the first half of the year regardless of lower commodity prices.

“Buyers continued to invest, driven by long-term confidence in the agriculture sector and the limited supply of available land,” Gervais said. “While growth is uneven across provinces, the overall trend points to promising growth opportunities in agriculture.”

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Provinces that experienced strong growth in recent years are now seeing a softening in farmland prices, while regions with previously more modest increases continue to see solid gains.

Gervais said, overall, the market appears to be stabilizing.

“The interplay between interest rates, farm revenues and expenses, and constrained land availability will continue to shape the trajectory of farmland values,” Gervais added.

Farm cash receipts fell 1.6 per cent in 2024, mainly due to a drop in grain and oilseed revenue, while livestock receipts rose. In early 2025, grain and oilseed receipts increased slightly, though results vary by crop and region.

Receipts for grains and oilseeds are expected to decline in 2025 by 6.0 per cent. Easing interest rates and healthy farm balance sheets should provide underlying support to farmland values.

Gervais said the farm economy may reflect a more cautious environment in the second half of 2025 and 2026 when it comes to the demand for farmland.

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alice.mcfarlane@pattisonmedia.com