Canadian cultivated farmland values rose 3.8 per cent on average in the first half of 2026, marking a slowdown from the 6.0 per cent increase recorded during the same period last year, according to Farm Credit Canada.
The latest increase also reflects a moderation over the broader 12-month period ending in June. Farmland values rose seven per cent from July 2025 to June 2026, compared with a 9.3 per cent increase during the previous 12-month period from January to December 2025.
"The pace of growth has eased from last year, but Canadian farmland values continue to show resilience," said Craig Johnston, FCC's chief economist. "Higher production costs, tighter margins and uncertainty around trade, tariffs and international markets are contributing to a more cautious and selective market."
The results point to a farmland market that is becoming increasingly regional, with the pace of appreciation differing substantially across the country and local economic conditions playing a larger role in determining values.
Regional differences widen
Prince Edward Island posted the strongest increase in farmland values during the first half of 2026, with an 11.9 per cent gain. Quebec followed with a 6.2 per cent increase, while Alberta and Manitoba each recorded increases of 5.3 per cent.
Nova Scotia farmland values rose 3.6 per cent, followed by Saskatchewan at 2.6 per cent, Ontario at 2.4 per cent and New Brunswick at 2.1 per cent. British Columbia was the only province to record a decline, with farmland values falling 1.9 per cent.
FCC's review also compares the current market with the latest upward cycle that began in 2020. The analysis found that farmland value growth has not reached its peak at the same time across the country, with momentum shifting from provinces that led the post-pandemic surge toward the Prairies, particularly Alberta.
Ontario and British Columbia, meanwhile, have experienced the sharpest normalization in farmland value growth, according to the review.
Harvest conditions could influence market
The shift toward more selective regional growth comes as Prairie farmland markets face the effects of a difficult harvest season, including adverse weather and higher diesel prices.
"Prairie farmland market growth preceded a difficult harvest season that has been marked by adverse weather and surging diesel prices," Johnston added. "Final crop quality and yields will shape the land market this fall and into next year."
The first-half update provides an early indication of farmland value trends across Canada. FCC said its full-year assessment will be released in its spring report.