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The average value of agricultural land is soaring again in Canada. Carrot harvest at Mas & Fils Jardiniers, in Saint-Michel, Quebec (Photo: Christinne Muschi / The Canadian Press) Agricultural land prices in Canada continued to climb last year, but some regions experienced more pronounced increases than others, according to a new report from Farm Credit Canada (FCC). The value of Canadian agricultural land increased by an average of 9.3% in 2025, extending an upward trend that has lasted for more than three decades, the federal Crown corporation notes. The increase last year was comparable to that of 2024, but more moderate than the 11.5% jump recorded by the sector in 2023. "Over the past year, the Canadian agricultural land market remained resilient, defying expectations, as producers continued to make strategic acquisitions, thereby supporting the value of cultivated land, irrigated land, and pastures nationwide," the report states. "The market was still favored by the appeal of agricultural land as a long-term investment, limited supply, and strong competition among farms seeking to expand." Buyers do not appear to have been discouraged by trade uncertainty caused by U.S. tariffs and rising input costs, such as fertilizers, but the report specifies that "these issues continue to represent significant risks to assess in the future." Significant variations by province. The Prairie provinces recorded the largest increases last year: 12.2% in Manitoba, 11.4% in Alberta, and 9.4% in Saskatchewan. In Ontario, values increased by 2.2% due to limited supply of high-quality land, while Quebec also remained below the national trend with a 4.8% increase. British Columbia recorded an average provincial decrease of 1.7%. This decline in British Columbia marked a sharp reversal from the 11.3% increase recorded in 2024. It was most pronounced in the Kootenay region, in the southeast of the province, with a 21.1% decrease in the average value of cultivated land. "Efforts to establish a fruit-growing region have encountered persistent challenges, and prolonged production difficulties have led many producers to withdraw from the market," the report indicates. J.P. Gervais, executive vice-president overseeing the loan portfolio in the agricultural production sector at FCC, points out that "there is no single agricultural land market in Canada." "It's an asset that is obviously not mobile; therefore, local conditions, production composition, and different dynamics within the province will play a determining role in explaining these trends." Mr. Gervais tells journalists during a teleconference that buyers are being cautious in markets where value growth is slowing. "Demand appears stronger for assets that suggest increased production or higher productive value in the future." Support due to global disruptions. At the end of last week, FCC announced an expansion of its client support program for trade disruptions, launched about a year ago in response to U.S. tariffs. The conflict in the Middle East has hindered fertilizer shipments in recent weeks; therefore, the program is extended to businesses facing the latest market shocks. The agency offers an additional credit line of up to $500,000, new term loans, and the possibility for existing clients to defer principal payments on its existing loans for up to 12 months. Mr. Gervais indicates that these aids do involve increased debt, but they give operators leeway to get through what he hopes is only a short-term situation without having to take hasty measures. "We don't want farms to be forced to make decisions that are not in their long-term interest," he adds. "The situation was already very tight for producers before the emergence of this recent conflict, and we expect profitability to be even more strained due to the events we are currently witnessing in the Middle East." Mr. Gervais indicates that long-term prospects are promising, despite current challenges. "The world needs more from us, more from Canada." Lauren Krugel, The Canadian Press