BC farmland values flat

BC farmland values were flat in the first half of this year as economic uncertainties stalled deal-making in the province’s most expensive regions.

A mid-year review of farmland value trends by Farm Credit Canada (FCC) indicated zero growth in values in BC, versus a 6% rise nationally. Ontario, another province also afflicted by a general downturn in real estate activity this year as economic uncertainties made buyers more cautious, also saw zero growth in values.

With values stalled, appreciation over the latest 12 months fell to 5.2%, down from 11.3% at the end of 2024. The gains were largely secured in the latter half of 2024, a relatively stable period following cuts to interest rates in the first half of 2024 and a more positive economic outlook.

U.S. trade policies put an end to the optimism, unleashing a more uncertain environment with broad impacts.

“The buyers are taking more of a cautious approach,” FCC senior economist Leigh Anderson told Country Life in BC.

The attitude paused activity in sectors such as dairy, vegetables and fruit – particularly orchard and vineyard properties – that typically account for some of the highest valuations.

Property transfer data from the BC Ministry of Finance indicates that the Peace was the most active region for farmland transactions in the first six months of this year, with 148 transactions reported versus 121 a year earlier. The additional 27 transactions more than offset declines in the rest of the province, which reported a total of 582 transactions in the first half of the year versus 556 a year earlier.

FCC chief economist JP Gervais was optimistic in the analysis circulated with the mid-year report, however.

“Buyers continued to invest, driven by long-term confidence in the agriculture sector and the limited supply of available land,” he says.

Yet even in the most active provinces, transactions are taking place in a tighter price range.

“Despite notable gains in certain regions, over the past six months, the overall range of sale prices per acre has increased only modestly,” he says. “Overall, the market appears to be stabilizing.”