By Alice McFarlane

Saskatchewan leads the way in farmland values

Mar 19, 2025 | 11:15 AM

Farm Credit Canada (FCC) reports the average value of Canadian farmland was up 9.3 per cent compared to 11.5 per cent the previous year.

Saskatchewan led all provinces at 13.1 per cent but still below the 15.7 per cent set in 2023 and 14.2 per cent in 2022.

FCC Chief Economist J.P. Gervais is not surprised by the 13.1 per cent increase even though there were lower prices for grains, oilseeds and pulses last year.

“I would say that explains why there’s still very strong demand…if you look at the value on a per acre basis as well, everything’s relative,” he said, “I think that’s some of the most productive land and we’ve come out some difficult years when it comes to drought and production conditions that have been really challenging over the last so many years. So, I think now we’re getting out of that and that explains why we’ve seen some of the decline in income.”

Northwest Saskatchewan saw the largest increase at nearly 20 per cent. Northeast, West Central and East Central were 17 and 18 per cent. Cultivated land ranged from an average of $4,200 an acre in the northeast to $2,600 in the southwest.

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All other provinces experienced growth in the single digits. New Brunswick’s cultivated land values grew by 9.0 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. Ontario’s cultivated average farmland value increased by 3.1 per cent and Prince Edward Island had the most stable values with an increase of 1.4 per cent.

Only British Columbia, Alberta and New Brunswick reported higher growth rates in 2024 than 2023.

Gervais said while farmland value appreciation is slowing, farmland affordability relative to farm income continues to deteriorate. This makes it challenging for farmers hoping to grow their land base including young producers, Indigenous peoples and new entrants.

In 2024, total Canadian principal field crop production is estimated at 94.6 million tonnes, up 2.7 per cent from 2023 and 3.3 per cent above the five-year average.

Lower prices for grains, oilseeds and pulses resulted in an estimated decline in main field crop receipts of 11.8 per cent in 2024, according to Gervais.

“The profitability pressures combined with the current uncertainty with regards to trade disruptions create significant headwinds for farm operations looking to invest,” Gervais added. “Overall, the increase in farmland values is a testament to the strong outlook for the demand of agricultural commodities and the high-quality food produced in Canada,” said Gervais.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW