Despite ongoing challenges in the agricultural marketplace, J.P. Gervais, FCC Executive Vice-President, Ag Production says he remains “super optimistic” about the future of Canadian agriculture.
“The world needs more Canada,” said Gervais while briefing media on the 2025 FCC Farmland Values Report, acknowledging that producers are navigating continued uncertainty related to trade and tariffs, high input costs, and lower commodity prices. Even with these pressures, he believes Canada is well positioned for long‑term growth and opportunity. He says current farmland values reflect the optimism for the future of agriculture in Canada.
When asked specifically about the role of small farms, Gervais emphasized the importance of diversity within the agricultural sector. “To be vibrant we have to have a good diversity of farms in Canada,” he said. “We have to think outside the box.”
Gervais acknowledged that operating a small farm can be challenging, but stressed that different types of farms play a critical role in building a resilient and innovative agricultural system. According to Gervais, maintaining a broad mix of farm sizes, production models, and business approaches will be essential to the sector’s future success.
Farmland Values Continue Upward Trend
The 2025 FCC Farmland Values Report shows that farmland values across Canada increased by an average of 9.3 per cent, extending a more than three‑decade‑long upward trend. Much of that growth was driven by strong demand in the Prairie provinces, followed by continued increases in the Maritimes. In contrast, gains in Ontario and Quebec eased after several years of stronger growth.
Gervais says these numbers are very similar to last year’s farmland values. Half of the provinces showing a robust increase in land values in 2025 and half showing modest increase or declines. Gervais says that there is no single Canadian Farmland asset, it varies by region.
He noted that generally speaking there is less availability of farmland for purchase. Buyers are more cautious and cognizant of the asset based on factors such as fertile land versus less workable land.
The Prairies led the country, with increases recorded across all three provinces. Manitoba farmland values rose by 12.2 per cent, followed by Alberta at 11.4 per cent, and Saskatchewan at 9.4 per cent. FCC noted that demand was influenced by producers making strategic, efficiency‑focused land purchases, recognizing that land often must be acquired when it becomes available, even during uncertain times. Strong commodity prices in the livestock sector also contributed to higher land values across the region.
Regional Highlights Across Canada
In the Maritimes, New Brunswick farmland values increased by 9.1 per cent, supported by high‑quality potato farms and cultivated land. Prince Edward Island followed with an 8.5 per cent increase, while Nova Scotia recorded a more modest rise of 1.6 per cent, primarily due to limited listings and land availability.
An insufficient number of publicly reported sales meant no farmland value data was available for Newfoundland and Labrador, or any of the territories.
In Quebec, farmland values rose 4.8 per cent, led by cultivated land. Demand in the province was strengthened by a diverse buyer pool and a mixed agriculture base.
Ontario farmland values increased by 2.2 per cent, reflecting limited availability of high‑quality land. The FCC report noted a noticeable shift in buyer behaviour, with purchasers becoming more selective and avoiding marginal land in favour of strategic acquisitions.
British Columbia Shows Regional Variation
Farmland values in British Columbia declined slightly by 1.7 per cent on average, with significant regional variation. The Kootenay region experienced a 21.1 per cent decline in cultivated land values, reflecting a correction from earlier transactions that had been largely supported by fruit producers. Meanwhile, the Peace‑Northern region saw an active market with a high volume of cultivated land transactions but no overall change in average value.
Across the province, the market continues to be influenced by a diverse mix of agricultural sectors. Limited land listings and demand from non‑farm buyers contributed upward pressure on values, while weather and production risks helped temper growth.
Pastureland and Irrigated Land Trends
Pastureland values increased 5.2 per cent nationally, with gains of more than 15 per cent recorded in the Peace‑Northern region of British Columbia (18.4 per cent) and Alberta’s Peace region (17.2 per cent). Values were influenced by terrain, land use, and limited availability, with additional pressure from recreational and non‑agricultural demand in some areas.
Irrigated land also saw notable increases, particularly in the Prairies. Alberta irrigated land values rose by 11.3 per cent, while Saskatchewan recorded a strong 19.2 per cent increase, reflecting the added value of reliable water access during periods of unpredictable precipitation. Strong demand for irrigated land was also noted in New Brunswick and Prince Edward Island, while values remained unchanged in British Columbia and Manitoba.
Barriers to entry Exist
While more than three decades of rising farmland values have benefited existing farm owners, they have made entry into agriculture increasingly difficult for new producers. FCC says it helps address this challenge through products like the Transition Loan, designed to support young farmers and others looking to build a future in the agriculture industry.
Looking Ahead
Despite pressures facing producers, Gervais remains confident in Canadian agriculture’s long‑term outlook, driven by global demand, strong production standards, and a wide diversity of farm operations. From large‑scale operations to small farms that bring innovation and adaptability to the sector, Gervais believes Canada has what the world needs.
For small farms, that message carries particular weight: even in a challenging environment, farm diversity remains a strength, and optimism continues to shape the future of Canadian agriculture.
FCC says the Canadian farmland market has remained resilient. “Demand for farmland remained robust, supported by long-term confidence in Canadian agriculture, lower borrowing costs, strong livestock prices and the limited supply of land available for sale,” said Gervais.
“The ongoing uncertainties related to trade and tariffs, high input costs and low commodity prices did not deter buyers’ interest in farmland. These factors combined with varying local market conditions will influence future trends in farmland affordability.”