A new report from Farm Credit Canada (FCC) shows farmland prices are rising much faster than rental rates, making it harder for farmers to buy land and pushing many to rent instead.
FCC’s latest analysis found the national rent-to-price ratio dropped to 2.35 per cent in 2025, down from 2.70 per cent in 2020. At the same time, farmland values jumped 9.3 per cent last year.
In simple terms, land is getting more expensive, but rent is not increasing at the same pace.
For many farmers, that means renting is still the more affordable way to grow. Renting land often comes with lower upfront costs and smaller payments than buying, making it easier to manage cash flow while covering expenses like fuel, seed and fertilizer.
However, renting does not build long-term equity. Farmers who buy land can benefit from rising values over time, turning it into an investment.
The report says fixed lease agreements are one reason rents lag behind land prices, as they do not adjust quickly to market changes.
FCC says farmers should weigh short-term affordability against long-term investment benefits when deciding whether to rent or buy.
