Photo: Alberta cultivated farmland values rose 5.3 per cent in the first half of 2026, exceeding the national average of 3.8 per cent. Growth varied across the province, strengthening landowners’ equity while increasing purchase costs for young farmers and expanding operations. Rural Alberta Report/C. Bowman

Alberta cultivated farmland values increased 5.3 per cent during the first half of 2026, outpacing the national average as demand for productive agricultural land remained strong.

Farm Credit Canada (FCC) reported Alberta farmland values were also 9.4 per cent higher in June than they were a year earlier.

The six-month increase tied Alberta with Manitoba for the third-highest growth rate among the provinces. Prince Edward Island led the country with an 11.9 per cent increase, followed by Quebec at 6.2 per cent.

Canadian cultivated farmland values rose an average of 3.8 per cent between January and June. That was down from the six per cent increase recorded during the first half of 2025. National values were seven per cent higher over the 12 months ending in June, compared with a 9.3 per cent increase during 2025.

Alberta’s provincial increase does not mean every farm or region gained 5.3 per cent. Farmland prices are affected by soil quality, parcel size, location, water access, local competition and the number of properties available for sale.

The strongest upward movement was reported in Alberta’s North and Peace regions, where FCC found more sales evidence supporting higher values. Other Alberta regions recorded fewer transactions, leaving assessed market movement closer to previous levels. That distinction is important in east-central Alberta, where a limited number of sales can make it difficult to establish a clear short-term price trend.

In southern Alberta, relatively few dryland properties changed hands. Irrigation continued to have a significant influence on land prices, with the value of irrigated parcels also affecting nearby dryland acres.

Alberta entered 2026 following an 11.4 per cent increase in cultivated farmland values during 2025. FCC’s analysis shows the province’s annual growth rate reached its recent peak at the end of that year.

The 9.4 per cent year-over-year increase recorded in June was two percentage points below that peak. It was still stronger than the national yearover- year increase of seven per cent.

The report indicates farmland growth has shifted toward the Prairie provinces after Ontario and British Columbia led parts of the post-pandemic increase. British Columbia was the only province to record a decline during the first half of 2026, with cultivated farmland values falling 1.9 per cent. Saskatchewan increased 2.6 per cent, Ontario rose 2.4 per cent and New Brunswick gained 2.1 per cent.

FCC attributed the uneven market to regional supply and demand, rising production expenses and uncertainty involving trade, tariffs and international markets.

Higher land values can strengthen the balance sheets of established landowners, but they also increase the amount of capital required by young farmers, expanding operations and producers competing for rented or purchased acres.

A five per cent increase can add substantially to the cost of a quarter section, depending on the starting value per acre. The effect on an individual purchase will vary because FCC reports percentage changes in market values rather than a single provincewide price per acre.

Farm earnings, crop quality, livestock returns, borrowing costs and the availability of suitable properties are expected to influence whether Alberta farmland values continue rising through the remainder of 2026.

FCC plans to publish its full-year farmland assessment in the spring.