So you want to be a farmer

The need for agricultural products remains strong, both for Canadian consumption and for markets abroad.

And there will always be a need for future farmers, whether that means them taking over a family farm or getting into the sector through a purchase or lease. The 2021 Census of Agriculture found that three in five (60.5%) of the 262,455 farm operators that year were aged 55 years or older, up 6.0 percentage points from 2016. The average age was 56.0 years, up slightly from 2016 (55.0 years) but more considerably from 2001 (49.9 years).

Just over 3 in 10 (30.9%) farm operators were aged 35 to 54 in 2021, while less than 1 in 10 (8.6%) were under 35.

In addition to aging farmers, the census also found that industry consolidation has led to fewer farms and operators. Land values may also represent a barrier to entry to the industry.

Against this backdrop, let’s have a look at some more recent financial data about what might be involved in farming—including land and equipment values, operating expenses and revenues, and other considerations.

Financial picture varies considerably among farm types

The biennial Farm Financial Survey’s (FFS) most recent data by farm type are from 2023, when 110,734 farms across Canada reported an average of $168,306 in net cash farm income per farm. The FFS represents farms with annual sales of $25,000 and higher.

Potato farms reported the highest per-farm net cash income ($769,700), followed by poultry and egg farms ($331,120), and dairy cattle and milk production farms ($248,920).

Conversely, it was lowest among beef cattle ranching and farming, including feedlots ($66,352), fruit and nut farms ($66,413), and other vegetable and melon farms ($174,850).

All farm types saw an increase in their net worth from 2021 to 2023.

Land values and other assets up, but liabilities rise

The census found that 98.3 million acres of farmland was owned by operators in 2021, down from 99.6 million acres in 2016, while the 63.5 million acres rented or leased from others was down from 67.3 million acres over the same period.

Data from the annual farm balance sheet, which lists the market value of farm assets every year on December 31, show that the average farmland value in Canada increased from $374.0 billion in 2016 to $713.3 billion in 2024, with significant differences among provinces.

For example, the value of Prince Edward Island farmland (and its iconic red soil) nearly doubled from $1.3 billion to $2.6 billion over that period, while the rate of increase was much slower in Newfoundland and Labrador ($133.9 million to $152.7 million).

Ontario farmland more than doubled from $100.7 billion to $204.6 billion, with lesser but still significant increases coming in most other provinces. Still, it was Saskatchewan farmland that rose the fastest in value, increasing from $70.3 billion to $154.3 billion.

Most other assets, such as machinery and buildings, generally rose from 2016 to 2024 as total assets grew in value, but were outpaced by an increase in total liabilities. The profitability ratios for returns on assets and equity both narrowed.

Income down by one-quarter in 2024; land and livestock values up

Realized net income fell by $3.3 billion (-25.9%) from 2023 to $9.4 billion in 2024. Lower crop revenues were a factor for much of the country, especially in Saskatchewan, while rising cattle prices pushed livestock receipts up.

Although two years’ worth of interest rate increases turned to cuts in 2024, farmers still had taken on a lot of debt over that period. Farm debt rose 14.1% in 2024—the largest annual increase since 1981.

Livestock and poultry purchases increased, though lower prices for commercial feed helped moderate those increases. The value per head of all livestock categories (except boars) was also up in 2024, notably among bulls and slaughter steers.

The value per acre of land and buildings continued to rise in every province, ranging from $2,647 per acre in Saskatchewan to $20,782 in Ontario.

So far in 2025

Farm cash receipts totalled $25.6 billion in the first quarter of 2025, up $778.6 million (+3.1%) from a year earlier.

Better growing conditions for field crops in 2024 meant better yields, so crop insurance payments decreased by $486.9 million in the first quarter and fell below their five-year average.

Farmers have also been receiving higher prices for grains, oilseeds, livestock, eggs, and dairy products in most provinces. Tighter supplies, lower stocks, and increased exports were all factors in prices.

The Farm Input Price Index rose 2.1% overall in the first quarter of 2025 from the previous quarter. Increases on key inputs, such as fertilizer and fuel, have slowed from the much higher increases of nearly three years ago, due largely to global factors such as the conflict in Ukraine, and supply-chain disruptions caused by the COVID-19 pandemic.

Animal production was among the input costs outpacing the overall increase of the index in the first quarter, notably livestock purchases.

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