Canadian farmland values continued to rise in 2025 despite economic pressure from higher input costs trade uncertainty and softer commodity prices according to a new report from Farm Credit Canada.

The national average value increased 9.3 per cent over the year with the strongest gains concentrated in the Prairie provinces where Manitoba led at 12.2 per cent followed by Alberta at 11.4 per cent and Saskatchewan at 9.4 per cent.  Growth was more moderate in Eastern Canada while British Columbia recorded a slight decline even as it maintained the highest overall land values.

The report indicates demand for farmland remained firm as producers continued to expand operations in a market constrained by limited land supply and long term confidence in agriculture.  Strong livestock prices and strategic land purchases supported values even as margins tightened and borrowing conditions shifted.

Analysts note the sustained rise in land prices presents ongoing challenges for new entrants while reinforcing equity for existing operators as the sector navigates uncertainty tied to trade policy input costs and global markets.