Farms.com Home   News

Rental Rates Match Farmland Value Growth

Farm Credit Canada (FCC) has recently shared an analysis that shows a significant correlation between farmland rental rates and the increasing values of farmland across Canada.

This study focuses on the rent-to-price ratio, which is essential for understanding the balance between what farmers pay to rent land and the land's market value.

In 2023, the national rent-to-price ratio stood at 2.52%, nearly unchanged from the previous year, illustrating stability in this aspect of agricultural economics.

The rent-to-price ratio is crucial for both established farmers and those new to the industry, as it influences decisions around whether to rent or purchase land.

In provinces like Saskatchewan, Manitoba, and Quebec, where farmland values saw the highest rises, rental rates have also increased, maintaining a balanced ratio that supports agricultural business stability.

J.P. Gervais, the chief economist at FCC, emphasized the strategic benefits of renting land, especially under the current economic conditions marked by rising land values and high interest rates.

Renting offers a viable way for farmers, particularly newcomers, to engage in agriculture without the substantial initial investment required to purchase land.

The analysis by FCC not only highlights the current trends but also provides a detailed regional breakdown that shows diverse trends across Canada.

For instance, while regions like Ontario and some Atlantic provinces have seen slower increases in rental rates compared to land values, the overall national picture remains stable.

By providing these insights, FCC supports the agricultural community in making informed decisions that align with their long-term operational and financial goals.

This is part of FCC’s broader mission to bolster the sector that feeds the nation and the world, showcasing the critical role of economic knowledge in sustainable agricultural practices.

Source : Small Farm Canada

Trending Video

From Conventional to Regenerative: Will Groeneveld’s Journey Back to the Land

Video: From Conventional to Regenerative: Will Groeneveld’s Journey Back to the Land

"You realize you've got a pretty finite number of years to do this. If you ever want to try something new, you better do it."

That mindset helped Will Groeneveld take a bold turn on his Alberta grain farm. A lifelong farmer, Will had never heard of regenerative agriculture until 2018, when he attended a seminar by Kevin Elmy that shifted his worldview. What began as curiosity quickly turned into a deep exploration of how biology—not just chemistry—shapes the health of our soils, crops and ecosystems.

In this video, Will candidly reflects on his family’s farming history, how the operation evolved from a traditional mixed farm to grain-only, and how the desire to improve the land pushed him to invite livestock back into the rotation—without owning a single cow.

Today, through creative partnerships and a commitment to the five principles of regenerative agriculture, Will is reintroducing diversity, building soil health and extending living roots in the ground for as much of the year as possible. Whether it’s through intercropping, zero tillage (which he’s practiced since the 1980s) or managing forage for visiting cattle, Will’s approach is a testament to continuous learning and a willingness to challenge old norms.

Will is a participant in the Regenerative Agriculture Lab (RAL), a social innovation process bringing together producers, researchers, retailers and others to co-create a resilient regenerative agriculture system in Alberta. His story highlights both the potential and humility required to farm with nature, not against it.