Farmland values held strong again in 2025

Canada’s national average farmland value rose 9.3% in 2025, matching last year’s overall pace of growth. This annual change falls between the 5-year average of 9.5% and the 10-year average of 8.6%, placing current growth in line with the longer-term trend. This post highlights trends in cultivated land, pastureland, and irrigated land.

Provincial trends

Our analysis spans January 1 to December 31, 2025. The Prairie “Three Musketeers” – Alberta, Saskatchewan, and Manitoba – led the country in average cultivated farmland values gain, posting increases of 11.4%, 9.4%, and 12.2% respectively (Figure 1). In the eastern provinces, values in New Brunswick and Prince Edward Island increased at comparable rates (9.1% and 8.5%), while all other provinces recorded growth below the national average.

Average irrigated land values remained stable in both British Columbia and Manitoba (0%), whereas Alberta and Saskatchewan experienced increases of 11.3% and 19.2%, respectively. Demand for irrigated acres persisted, driven by yield advantages and the enhanced production certainty provided. Despite limited property turnover and the tightly held nature of many parcels, interest from established irrigators and adjacent dryland operators continued to support a premium on these acreages and underpinned sustained land values.

The national percentage change in average farmland value is calculated using a weighted average approach. Saskatchewan, with the largest acreage of cultivated land, carries the greatest weighting in the national result, followed by Alberta and Manitoba, which represent the second and third-largest influences, respectively.

Figure 1: Average Cultivated Farmland Value Changes for 2025

Source: FCC calculations

Record cattle prices are not yet enough for driving pastureland as producers have long-term memories

In 2025, pastureland values rose across the western Canadian provinces where this metric is tracked (Figure 2), with Saskatchewan experiencing the highest increase at 7.6%, followed by British Columbia at 5.6%, Manitoba at 4.3%, and Alberta at 3.5%. Long running droughts in major cattle producing regions must be considered when thinking of how pastureland is valued. The Northern and Peace regions of British Columbia and Alberta posted the strongest gains, driven by demand for mixed-use and grazing parcels. In several regions, values reflected not only grazing capability but also competition from lifestyle and part-time farmers, which further limited available supply.

Figure 2: Average Pastureland Value Changes for 2025

Source: FCC calculations

Although data collection began only in 2022, the available information still offers meaningful insights. The average rate of growth for western pasture values peaked in 2023 and has since moderated, with the region averaging 5.2% last year (see Figure 3). While cropland growth has slowed since 2022 as well, it still was over 10% in 2025, nearly double pastures growth.

Figure 3: Average Western provinces cultivated farmland value and pasture

Sources: FCC calculations, Statistics Canada

Over the past four years, pastureland values have risen by an average of 7.0% annually. In contrast, cropland values in the western regions saw a stronger increase, climbing 11.1% per year and further establishing cropland as the main factor influencing agricultural land values. While farm cash receipts – or revenue – are typically viewed as indicators of a producer’s ability to reinvest in farmland, the data tells a different story. For example, cattle revenues grew by 74% from 2022 to 2025, but crop receipts declined by 9% during the same period.

Despite falling revenues and narrower margins, cropland prices remain high due to strong demand, reflecting confidence in agriculture's fundamentals. Productive land is valued for its role in efficient production, even with shifting market factors like commodity cycles and trade policy. Family succession planning and demographic trends also limit supply, as older producers keep land for heirs or long-term investment, helping stabilize the market.

In the cattle industry, it is essential to consider the various types of operations involved. Cow-calf producers, who are the primary users of pastureland, have experienced strong revenues and margins in recent years; however, these results follow nearly a decade of challenging profitability, at least in part due to long running droughts. Many producers are currently focused on strengthening their balance sheets, while those aiming to expand their herds are reinvesting in cattle at or near historically high prices (the Canadian beef herd did increase 2.5% on January 1), and as always keeping weather in the back of their minds. It appears it will take more than a few years of good margins for cattle producers to start reinvesting in additional pastureland. Conversely, feedlot operators, although some utilize pastureland, rely mainly on feed sources such as silage, hay, or grain, which originate from cultivated or irrigated land that has experienced stronger price increases.

Bottom line

Canadian farmland values remain resilient, supported by strong demand, limited supply and continued confidence in agriculture. Cultivated and irrigated land prices have held firm despite tighter margins and lower crop receipts, as producers continue to make strategic, long-term acquisitions.

Pastureland values are up thanks to record cattle prices and better margins for livestock producers, especially cow-calf operations, but growth there has slowed as producers may be choosing to expand the herd or strengthen balance sheets. As the Canadian cattle herd moves into expansion mode, the demand for pasture should increase.

Although trade uncertainty, tariffs, high input costs and softer commodity prices remain important risks to monitor, they have not materially dampened buyer interest or overall farmland values.

Article by: Megan Mailloux, Business Intelligence Analyst & Justin Shepherd, Senior Economist