Ontario farmland values continue to increase slowly following nearly a decade of record growth, says the 2025 Farmland Values report from Farm Credit Canada (FCC).
Some regions in Ontario saw no growth in farmland value in 2025.
In its report, FCC said agricultural land values were “resilient” last year and defied expectations of a downturn.
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Average cultivated farmland values in Ontario increased 2.2 per cent in 2025, compared to 3.1 per cent in 2024.
FCC attributed the modest rise in Ontario to farmers becoming picky. They were willing to pay high prices for top-quality land but avoided marginal properties.
The Northern region, at 10.6 per cent, saw a significant increase in value in 2025 averaging $5,400 per-acre, up from $4,900.
The South West region took over the top spot for most valuable land with a value of $33,700 per-acre, narrowly edging out last year’s top region of Central West with an average value of $33,200 per-acre.
Despite taking the top spot, the South West region saw zero growth value per-acre in 2024. The Central East region also saw zero growth holding at $13,100 per-acre respectively.
The Southern Region saw negative growth in 2025, slipping 1.0 per cent to $23,400 per-acre down from $23,600 per-acre in 2024.
Meanwhile, across the Prairies, farmland values continued on an upward trend in 2025, despite trade uncertainty, relatively high interest rates and hefty input costs for Canadian farmers.
Producers made strong bids for available land, increasing values by 12.2 per cent in Manitoba, 11.4 per cent in Alberta and 9.4 per cent in Saskatchewan.
“The market remained supported by farmland’s long-term investment appeal, tight supply and strong competition from expansion-focused producers,” says the FCC report, released March 24.
“The Prairie provinces drove much of the year’s average increase (across Canada).”
Overall, the value of cultivated land jumped 9.3 per cent from coast to coast, but provinces outside of the Prairies saw weaker gains or losses in value:
- British Columbia, a 1.7 per cent decline.
- Quebec, 4.8 per cent gain.
A similar situation has developed in Saskatchewan. Expanding producers are driving demand for the best land in the most productive regions.
In 2025, price increases in northeastern, northwestern and east-central Saskatchewan were around 12 per cent. Those regions produce the highest yields for key crops like canola and wheat.
In west-central Saskatchewan, where yields are lower, farmland values increased 4.8 per cent in 2025.
The average price of cropland in northeastern Saskatchewan is getting close to $5,000 per acre. That’s a massive jump from 2019, when average values in the northeast were $2,000 per acre.
Farmland realtors on the Prairies have also noticed this trend of robust demand for fertile land.
“Good land in a good area is still going up,” said Tim Hammond of Hammond Realty in Biggar, Sask.
In southern Alberta, dryland prices surged upward by a 16.4 per cent in 2025. Irrigated land, which is now at $20,000 per acre in the province, played a role in the value gains in southern Alberta.
As irrigation districts have expanded, dryland acres close to irrigated land have become more valuable, FCC said.
A major theme in the FCC report was the shortage of land for sale in multiple provinces and regions.
This could be part of an ongoing trend, for the last 15 years, where retiring farmers rent their land instead of selling.
Whatever the reason for the shortfall of properties on the market, it’s clear that supply is “tight”, said J.P. Gervais, FCC executive vice-president of agricultural operations.
“This is something that has been certainly documented last year, and if I’m not mistaken, the year before,” he said.
“One of the overall drivers of farmland values, how tight the supply, does matter when (it) comes to the valuations that we’re currently seeing…. Generally speaking, very tight availability of farmland (for sale).”
Pastureland also higher
The FCC report had data on pastureland values, which saw a 5.2 per cent increase across Canada thanks to stronger prices for beef cattle over the last few years.
Gains were much higher in Alberta’s Peace region and northern B.C., where values climbed 17 to 18 per cent.
Across the Prairies, Saskatchewan saw the largest increase in pastureland prices of 7.6 per cent.
