Farmland values throughout Canada kept rising in 2025, but the increase in Ontario (including some areas of midwestern Ontario) showed signs of slowing as buyers grew more discerning.
A recent report from Farm Credit Canada reveals that national farmland values increased by an average of 9.3 per cent last year, continuing what it describes as a “more than three-decade-long upward trend.” The agency notes that the market has stayed strong despite economic challenges, with producers still looking to expand and compete for scarce land.
“Over the past year, the Canadian farmland market remained resilient, defying expectations,” states the report, adding that demand continues to be driven by “tight supply and strong competition among expansion-focused producers.”
In Ontario, however, growth was much slower. Farmland values rose by only 2.2 per cent in 2025, which marks a significant decrease compared to previous years.
The report highlights a clear change in how farmers are purchasing land, indicating that “buyers have become increasingly particular, paying strong prices for high-quality cultivated land while avoiding marginal properties.”
This trend is particularly noticeable in Huron, Perth, Grey, Bruce and Wellington counties. Here, values did increase but at a more measured rate. This region saw a 5.9 per cent rise-the second-highest in the province.
Still, FCC observes that dynamics are shifting. “Purchases were less reactive as established players were making deliberate, well-considered acquisitions,” says the report.
Locally speaking, this means fewer bidding wars over lower-quality farms and greater emphasis on factors like productivity, tile drainage systems and closeness to existing operations.
Throughout southwestern Ontario-home to some of the province’s most valuable farmland-prices have mostly stabilized. The report mentions regions like the southwest and central west “continued to feature the highest cultivated farmland values,” but also notes that “cultivated land prices largely plateaued and buyers were selective, paying premiums primarily for high-quality parcels.”
There were also indications of strain from weather conditions. In certain parts of Ontario-especially eastern areas-drought caused crop losses and reduced activity in land sales. FCC reports that some buyers stepped back from the market after facing tough growing conditions while others concentrated solely on top-tier land.
Despite this slower growth pattern overall demand for farmland remains robust. Nationally, FCC points out ongoing succession issues urban pressures and long-term investment attractiveness continue supporting prices.
However, the report also cautions producers to stay alert amidst a changing economic landscape.
“Market conditions can change rapidly which can impact land values,” warns FCC stating farmers should maintain risk management plans to navigate fluctuations in commodity prices yields and interest rates.
For those farming across midwestern Ontario it’s clear: farmland is still gaining value but widespread price jumps seem to be giving way to a more careful market focused on quality.
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