Farmland prices rise in Ontario, but remain well below national average

Following several consecutive years of drastic price increases, Ontario farmland seems to be settling down. CTV London’s Scott Miller has the latest.

For the 30th consecutive year farmland prices in Canada have risen - but not as much as in year’s past.

In the most recent farmland price report from Farm Credit Canada, cross country numbers show a 9.3 per cent increase in the price of farmland in 2024. Western Canada led the way with Ontario falling well behind at 3.1 per cent.

This follows record setting years in 2021 and 2022, with increases of 22.2 per cent and 19.4 per cent respectively, and a more modest 10.3 per cent increase in 2023.

“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” said J.P. Gervais Farm Credit Canada’s Chief Economist. “The limited supply of farmland available for sale combined with lower borrowing costs resulted in an increase in the average price of farmland across the country.”

But there is turbulence on the horizon said a local realtor.

“It has definitely been a roller coaster ride. And we’ll see what comes,” said Robert Hulley who owns a farm near Brucefield along with being a realtor with Royal Lepage Heartland Realty.

The ‘roller coaster ride’ in question being uncertainty surrounding the impacts a tariff trade war between Canada and the United States may have on agriculture.

“I’m not a fortune-teller but the U.S. tariff situation is going to affect us, especially if the quota people get hurt. It’s going to affect land prices and commodity prices - it already has to some extent,” he said.

In our viewing area - considered the breadbasket of Ontario - farmland prices have really come back to earth.

In the Bruce-Grey region there was no increase in land value last year with an average price per acre of $19,200. In Huron, Perth, and Oxford counties there was a modest 3.2 per cent increase in farmland value, with an average of $33,700 per acre. In the Lambton, Middlesex, Essex corridor prices only went up 2.4 per cent, to an average of price per acre of $23,600.

“It does look like we have may have reached the top. It depends on where you are - in this case Huron County, like to the north or to the south. Where’s that price exactly? East into Wellington, or over into Middlesex and south. Where is that plateau? It’s different for each region but I don’t anticipate us going up much more,” said Hulley.

With tariffs on the horizon and uncertainty in all markets, could a decrease in farmland prices be in store? Hulley doubts it.

“You need to look at a decade basis and dare I say even a generational basis. So, the people buying now are looking at generational. So, over the years I cannot foresee any change except positive,” he said.

You can read the entire Farm Credit Canada farmland report at Farmland Values Report | FCC.