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Farmland values influenced by many factors

Reference: FCC

For most farms, farmland is the biggest asset, and in recent decades, land values have appreciated steadily, making it a great investment. In many cases, the increase has contributed more wealth to the farm than the income derived from the production.

Beginning farmers wonder how they’ll ever be able to afford to buy land. Retiring farmers wrestle with how to transition the farm to the next generation when so much value is in the land base. Everyone wishes they could know what farmland values will do in the future.

The annual FCC Farmland Values Report tracks and highlights average changes in cultivated farmland values – regionally, provincially and nationally. Using a system based on benchmark farm properties across the country, it provides important information to help producers manage risk and make informed business decisions.

Price variation within a region comes from different use options and suitability, parcel size, quality and location. The FCC report highlights the factors affecting prices in each region.

FCC Farmland Values Report
To explore detailed provincial and regional insights, access the full FCC Farmland Values Report.
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Supply and demand

Land values follow the laws of supply and demand. A shortage of available land in a region (low supply) and many farmers interested in buying land (high demand) are factors contributing to higher prices.

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