2024 Farmland rental rates – Renting or purchasing depends on many factors

For the past five years, FCC has been closely monitoring Canadian farmland rental rates and examining the impact of farmland value growth on these rates. According to the FCC Farmland values report, there was a significant increase of 9.3% in average farmland values in 2024. While this growth rate is slower compared to recent years, it remains notably high. In contrast, the trends in cash rental rates have been more moderate. Over the last five years, the Canadian rent to price ratio has fluctuated from 2.70% in 2020 to 2.50% in 2024.

Renting land is an important business decision to manage financial risk. The duration, conditions and options negotiated when renting land has a large impact on the rental market trends. This can lead to rental agreements lagging farmland value changes in the short term.

Rent to price ratio analysis

While there are different kinds of rental agreements used in the agriculture sector, like crop sharing; this analysis focuses on cash rental agreements, which is measured as follows:

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