Value of southern Alberta farm land growing faster than other parts of Canada

A generic shot of a farm in Alberta.

The value of farm land in Alberta is growing faster than the national average, according to new data.

Farm Credit Canada found in 2025 farm land valuations jumped 11.4 percent in Alberta — its biggest increase since 2016. Southern Alberta saw an even larger increase in valuations of 16.4 per cent.

That’s higher than the Canadian average of 9.3 percent.

“It’s just the rate of increase is what’s a little bit alarming and hopefully things level out because at the same time, the farmers ability to have profits pencil out is that much harder,” said Farming Smarter executive director Ken Coles.

The biggest driver of increased prices is high demand and lack of supply, while recent expansions of irrigation infrastructure and the potato industry account for a large portion of the valuation increases.

“One of the drivers is … just constrained supply. (There’s) a lot of competition, a lot of big feedlots, a lot of, a lot of irrigated land down there. The supply of dry land is fairly limited,” said Kurri Carlson, an appraiser in Alberta for Farm Credit Canada.

More expensive land is just another cost for an industry that’s seen expenses spike in recent years.

That will make it even harder for newer farmers to enter the industry.

Farmers who already run operations may also struggle to expand.

“It’s a real challenge just in the sheer amount of capital you need to even get started,” Coles said.

“In farming you have to have a certain amount of land in order to get the economies of scale for where the business actually makes sense.”

Farmers who already own their land and don’t intend to expand are sitting pretty. Carlston said those farmers are likely set up for a strong retirement when the time is right.

“Depending on when they started, but I’m guessing they would have acquired this land 20 years ago at significantly less than it’s worth now,” he said.

“That’s a pretty good retirement plan for some of these folks.”