BC was the sole province in Canada to see farmland values decline in the first half of this year, according to a Farm Credit Canada (FCC) report released October 7.
The mid-year survey of farmland values across the country indicates a 1.9% drop in the first six months of this year, furthering the 1.7% drop reported for 2025.
The result was a 3.9% drop in the 12 months ended June – one of the steepest 12-month declines since the mid-1980s. It exceeds the 3.1% decline reported for 2024, which amounted to a moderation in values during a dramatic run-up coinciding with the pandemic.
On average, BC farmland increased by nearly 49% between 2019 and 2023, but now sits at 43% above its pre-pandemic value.
“Overall, growth momentum has shifted from the provinces that led the post-pandemic surge toward the Prairies, particularly Alberta,” FCC reported. “Ontario and British Columbia have experienced the sharpest normalization.
FCC says demand remains strong “for productive, well-located land,” while noting that “higher input costs, tighter margins and regional supply constraints are making buyers more selective.”
In BC, this is playing out in steady demand in the Cariboo-Chilcotin region but limited sales activity.
“Recent value softening did not signal a broader market downturn,” FCC reported. “In the South Coast and on Vancouver Island, values were stabilizing, although longer exposure periods and increased listing inventory continued to place downward pressure on these markets.”
Property transfer data from the BC Ministry of Finance indicates a 25% drop in farm property sales in the first six months of this year versus a year earlier. The most active regions were the Peace, with 104 properties changing hands (down 30% from a year ago), and the Fraser Valley, with 68 properties changing hands (up 24% from a year ago).
Outlying areas including the North Coast and Kitimat-Stikine regions saw the largest gains in activity, but off a low base. Central Okanagan farm property sales posted the strongest increase (up 87% versus a year ago) among the major commercial production regions.
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