PWM Perspectives provides valuable insights into market dynamics, investment opportunities through Q Wealth, and key financial indicators. We are committed to keeping you informed with timely updates from PWM Private Wealth Counsel and Q Wealth Partners, our partner portfolio management firm.
As combines roll across the Prairies and the final crops of the season are brought in, it’s a fitting time to reflect on the value of farmland in Canada. For many, the farmland is home and part of the family legacy, alongside being a productive asset and a long-term investment. At PWM and Q Wealth Partners, we believe that understanding the cycles of farmland values is essential not just for farmers and landowners but for investors seeking resilient, real-asset exposure in their portfolios.
Farmland values in Canada have continued their upward trajectory, with the average value of cultivated farmland increasing by 9.3% in 2024, following an 11.5% increase in 2023. However, signs of a shift are emerging. Farm Credit Canada’s (FCC’s) Farmland Affordability Index—which measures the relationship between land costs and income potential—reached its worst level since 1983. In Saskatchewan, affordability is at its lowest since the early 1990s, driven by rising land prices and declining farm cash receipts.
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Since 1991, Canadian farmland values have risen over 400%, while net operating income per acre has only increased about 50%. This widening gap indicates farmland may be overpriced compared to its income, but it also underscores its value as a long-term asset, consistently beating inflation and providing portfolio diversification.
Research from Trent Klarenbach’s 100-year farmland value chart confirms what many in the industry have suspected: we might be nearing the peak of a long upward cycle. As one example shows, land bought in the 1980s took decades to regain its value. For landowners approaching retirement, this could be a key moment to consider whether to hold or sell, something we’ll be discussing further at our upcoming Seminar Series in November.
Farmland has traditionally provided a compelling risk-return profile compared to conventional asset classes. From 2003 to 2022, Canadian farmland achieved a 9.2% annualized return, surpassing both the S&P/TSX Composite Index (~8%) and Canadian bonds (~3%). Over the past two decades, farmland values have demonstrated nearly zero correlation with financial assets, establishing them as a strong diversification option. The question in our current Canadian dynamic remains around farmland concentration from a geographic standpoint.
In response to these trends, including global food demands with a growing population, the Q Wealth Signature IQ Strategic Assets Fund is actively evaluating farmland funds with international exposure, including those like the Manulife Sustainable Agriculture Fund, and Farmland LP in the United States. These funds aim to capitalize on the same appreciation trends seen in Canadian farmland, while also tapping into global agricultural markets, particularly in the U.S., Australia, and emerging regions.
This global approach to a unique asset class complements Q Wealth’s pension-style investment philosophy, which aims for long-term, inflation-protected, real asset exposure that enhances portfolio resilience and sustainability objectives.
If you found the information above of interest and want to learn more, we would welcome you to register for our FREE upcoming seminar series, “Life After Harvest – Farmland Prices & Your Wealth Plan.” Whether you’re a landowner, investor, or simply curious about the future of farmland, this session will provide valuable insights into market cycles, succession planning, and strategic decision-making. More information is available below.
Upcoming Events:
Life After Harvest: Farmland Prices & Your Wealth Plan (Presented by PWM Private Wealth Counsel)
Farmland in Saskatchewan isn’t just an asset. It’s a legacy, a lifework, a piece of identity. Understanding today’s trends, risks, and opportunities has never been more important.
Join us for this FREE Seminar as we explore whether farmland values are peaking, and what that means for landowners.
Alternatively, you can also register using the options below.
Limited Seats Available!
📞 By Phone: 306-975-9500
📧 By Email: info@pwmprivate.com
