"After years of dramatic gains, southwestern Ontario farmland values have settled into a more level market, according to the latest Valco Consultants land values report. Valco partner Ryan Parker has been compiling the Southwestern Ontario Land Values report annually since 2010. He says the recent slowdown was almost inevitable given shrinking margins on the crop side of the business."
"In this interview, Parker points to two core forces shaping the market: interest rates and commodity prices. "Any downward movement in rates always helps out land values," he explains. However, weak commodity margins and broader macroeconomic pressures - including trade tariffs and U.S. protectionism - have tempered buyer enthusiasm, slowing growth. The report also highlights distinct regional dynamics. Livestock-intensive counties such as Bruce and Grey maintained tighter values and stronger demand, buoyed by active livestock sectors and migration northward."
Southwestern Ontario farmland values eased into a more level market in 2025, rising an average 2.7 percent to about $27,258 per acre. Interest rates and commodity prices are identified as the primary market drivers, with any downward move in rates supporting land values but weak commodity margins and macroeconomic pressures, including trade tariffs and U.S. protectionism, damping buyer enthusiasm. Regional differences persist: livestock-focused counties like Bruce and Grey saw tighter values and stronger demand, while crop-oriented areas such as Lambton experienced price declines and higher inventory. Sellers pricing farms above current buyer willingness contribute to slower transactions. The 2026 outlook is cautious and expected to be flat.
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