Farm Credit Canada (FCC) has released its annual Farmland Value Report. The report provides a look at regional land value trends across Canada in price per acre.
The national average increased by 5.4 per cent in 2020, with British Columbia having the largest increase at 8.0 per cent and New Brunswick having the smallest, at 1.3 per cent. Canada’s average farmland values have increased every year since 1993. Low interest rates and high crop production revenues factored into the national increase in 2020.
However, FCC notes that affordability of farmland was at its second lowest in 20 years in 2020. Affordability is determined by land prices, financing costs and farm revenue.
Average per cent changes in Canadian farmland values
| Region | 2020 | 2019 | Five-year average |
| Canada | +5.4 | +5.2 | +6.7 |
| British Columbia | +8.0 | +5.4 | +6.1 |
| Alberta | +6.0 | +3.3 | +6.7 |
| Saskatchewan | +5.4 | +6.2 | +7.3 |
| Manitoba | +3.6 | +4.0 | +4.9 |
| Ontario | +4.7 | +6.7 | +5.8 |
| Quebec | +7.3 | +6.4 | +7.6 |
| New Brunswick | +1.3 | +17.2 | +5.6 |
| Nova Scotia | +1.6 | +1.2 | +3.3 |
| Prince Edward Island | +2.3 | +22.6 | +9.6 |
Data courtesy of Farm Credit Canada
For 2021, FCC anticipates that low interest rates, strong oilseed and grain prices will drive demand for farmland; low availability of farmland will likely drive farmland values up.
For the full report and FCC’s analyses, visit fcc-fac.ca/en/knowledge/economics/farmland-values-report.html.
